Forex for a trader
Forex cfd otc

Forex cfd otcGAIN Capital provides a whole range of options and trading solutions. More options for trading options. OTC options are a versatile, complimentary product to spot forex and CFDs that allow you to trade in any market climate, regardless of low or high volatility. Many traders use options to hedge their forex and CFD positions, diversify their portfolio or trade when the markets are relatively flat. GAIN Capital provides a range of OTC options to trade* on major indices, commodities and FX pairs , and solutions for you to provide options to your customers. Introduce your customers to options & earn as they trade. Introduce your customers to options trading with GAIN Capital and earn as they trade through our transparent and trusted introducing broker program. Offer options trading under your own brand. We make it easy for you to offer competitive options pricing to your customers under your own brand, with our flexible turn-key white label solutions. Access options liquidity via API. Provide access to your customers via API and major MT4 bridge providers. Online options trading. Tight spreads and deep liquidity available through our platforms and optimised apps for smartphone and tablet. *Some products and services may not be available in all jurisdictions or to all clients. OTC has a particular significance in relation to IG's platform. Here, we define OTC in general investing and explain what it means to you when trading with IG. OTC stands for over-the-counter, and refers to a trade that is not made on a formal exchange. It is often also referred to as off-exchange trading.

Usually, the firms offering OTC trades will quote the prices at which they are willing to buy or sell assets, giving one price for each trade. This differs from on-exchange trades, where many buy and sell prices can be seen from a variety of different sources. The most popular OTC market in trading is forex, where currencies are exchanged between parties directly instead of on exchanges. This means that forex trading is decentralised, and can take place 24 hours a day – instead being limited to an exchange’s opening hours. Shares are often traded OTC as well as on exchanges. Some businesses, for example, sell their shares away from recognised exchanges. There are also networks and market makers that allow the trading of shares away from exchanges. These include multilateral trading facilities, dark pools and lit pools. Derivatives and bonds are also commonly traded over-the-counter, although different instruments will be traded in different ways. With IG. IG offers both OTC and on-exchange (via our DMA service) trading on forex and shares, allowing you to choose whether you trade at our price or view all available options on order books. When stockbroking with IG, we use smart order routing technology to search for additional liquidity across various ‘dark pools’ and ‘lit’ venues and source the best possible prices. Get answers about your account or our services. Or ask about opening an account on 1800 601 799, or +61 (3) 9860 1799, or helpdesk. [email protected] com. We're here 24hrs a day from 1pm Saturday to 7am Saturday (AEST). Follow us online: CFDs are a leveraged product and can result in losses that exceed deposits.

You do not own or have any interest in the underlying asset. Please consider the Margin Trading Product Disclosure Statement ( PDS) before entering into any CFD transaction with us. The value of shares and ETFs bought through an IG share trading account can fall as well as rise, which could mean getting back less than you originally put in. Please ensure you fully understand the risks and take care to manage your exposure. IG does not issues advice, recommendations or opinion in relation to acquiring, holding or disposing of our products. IG is not a financial advisor and all services are provided on an execution only basis. This website is owned and operated by IG Markets Limited. ABN 84 099 019 851, AFSL 220440. Derivatives issuer licence in New Zealand, FSP No. 18923. The information on this site is not directed at residents of the United States or any particular country outside Australia or New Zealand and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. What is 'Over-The-Counter - OTC' Over-the-counter (OTC) is a security traded in some context other than on a formal exchange such as the New York Stock Exchange (NYSE), Toronto Stock Exchange or the NYSE MKT, formerly known as the American Stock Exchange (AMEX). The phrase "over-the-counter" can be used to refer to stocks that trade via a dealer network as opposed to on a centralized exchange. It also refers to debt securities and other financial instruments, such as derivatives, which are traded through a dealer network. Over-The-Counter Market.

Interdealer Quotation System. BREAKING DOWN 'Over-The-Counter - OTC' For many investors, there is little practical difference between OTC and major exchanges. Improvements in electronic quotation and trading have facilitated higher liquidity and better information. However, there are key differences between the transaction mediums. On an exchange, every party is exposed to offers by every other counterparty, which may not be the case in dealer networks. There is less transparency and less stringent regulation on these exchange," so unsophisticated investors take on additional risk and could be subject to adverse conditions. Popular OTC Networks. The OTC Markets Group operates some of the most well-known networks, such as the OTCQX Best Market, the OTCQB Venture Market and the Pink Open Market. These markets include unlisted stocks that are known to trade on the Over the Counter Bulletin Board (OTCBB) or on the pink sheets. Although Nasdaq operates as a dealer network, Nasdaq stocks are generally not classified as OTC because the Nasdaq is considered a stock exchange. Conversely, OTCBB stocks are often either penny stocks or are offered by companies with bad credit records. The OTCQX Best Market includes securities of companies that have the largest market caps and greater liquidity than the other markets. The OTCBB trades stocks that are small and developing, and that report to regulators. Pink sheets stocks come in a wide variety.

Securities on OTC Networks. Stocks are usually traded OTC because the company is small and cannot meet exchange listing requirements. Also known as unlisted stock, these securities are traded by broker-dealers who negotiate directly with one another over computer networks and by phone. The dealers act as market makers, and the OTC Bulletin Board is an inter-dealer quotation system that provides trading information. Some well-known large companies are listed on the OTC markets. For instance, the OTCQX trades Allianz, BASF, Roche and Danone. American depository receipts, which represent shares in an equity that is traded on a foreign exchange, are often traded OTC, because the underlying company does not wish to meet the stringent exchange requirements. Instruments such as bonds do not trade on a formal exchange and are also considered OTC securities. Most debt instruments are traded by investment banks making markets for specific issues. An investor must call the bank that makes the market in that bond and asks for quotes to buy or sell a bond. Contract For Differences - CFD. What is a 'Contract For Differences - CFD' A contract for differences (CFD) is an arrangement made in a futures contract whereby differences in settlement are made through cash payments, rather than by the delivery of physical goods or securities.

This is generally an easier method of settlement, because both losses and gains are paid in cash. CFDs provide investors with the all the benefits and risks of owning a security without actually owning it. BREAKING DOWN 'Contract For Differences - CFD' The CFD is a tradable contract between a client and a broker, who are exchanging the difference in the current value of a share, currency, commodity or index and its value at the contract’s end. Advantages of a Contract for Differences. CFDs provide higher leverage than traditional trading. Standard leverage in the CFD market is as low as a 2% margin requirement and as high as a 20% one. Lower margin requirements mean less capital outlay and greater potential returns for the trader. Also, the CFD market is not bound by minimum amounts of capital or limited numbers of trades for day trading. An investor may open an account for as little as $1,000. In addition, because CFDs mirror corporate actions taking place, a CFD owner receives cash dividends and participates in stock splits, increasing the trader’s return on investment. Most CFD brokers offer products in all major markets worldwide. Traders have easy access to any market that is open from the broker’s platform. Because of stock, index, treasury, currency, commodity and sector CFDs, traders of different financial vehicles benefit.

The CFD market typically does not have short-selling rules. An instrument may be shorted at any time. Since there is no ownership of the underlying asset, there is no borrowing or shorting cost. In addition, few or no fees are charged for trading a CFD. Brokers make money from the trader paying the spread. A trader pays the ask price when buying, and takes the bid price when selling or shorting. Depending on the underlying asset’s volatility, the spread is small or large and typically fixed. Disadvantages of a Contract for Differences. Paying the spread on entries and exits prevents profiting from small moves, while decreasing winning trades and increasing losses by a small amount over the underlying asset. Since the CFD industry is not highly regulated, the broker’s credibility is based on reputation rather than life span or financial position. Because each day a trader holds a long position costs money, a CFD is not suitable for buy-and-hold trading or long-term positions. Sweet Futures offers the following forex trading services which are tailored for the individual, institutional & hedging customers. We offer Forex trading that supports both electronic & voice Execution.

Our products include FX swaps, NDFs, Options, Spot, EFPs and FX Forwards which are fully customizable to fit a client’s hedging needs. Our Execution options include but are not limited to: Reuters, Currenex, MT4, Integral, FXall 360T GTX eFX FIX API Plugin Access to 12,000 CFD, spread bet, option and FX markets Voice Execution We work with 20+ tier banks and liquidity providers Instant messenger Bloomberg Trading. 24-hour trading desk Extend credit to institutions with ample balance sheets will be looked at on a case by case basis We also can offer (DVP) Deliveries versus Payment contract in the many different currencies Award - winning Trading platforms with Mobile access Price Transparency and trade execution across global markets. Contact Us for Consultation Contact Us. Sweet Futures 1, LLC 141 West Jackson Blvd. Suite # 3306 Chicago, IL 60604. Email: [email protected] com Phone: 312.216.5701. © 2017 Sweet Futures – Futures, Commodities, Options Brokerage Firm. The risk of trading futures and options can be substantial. Trading foreign exchange carries a high degree of risk, and may not be suitable for all investors. All information, publications, and reports, including this specific material, used and distributed by Sweet Futures 1, LLC shall be construed as a solicitation. Sweet Futures 1 does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71. This website contains information obtained from sources believed to be reliable, but its accuracy is not guaranteed by Sweet Futures 1. Past performance is not necessarily indicative of future results. © 2017 Sweet Futures – Futures, Commodities, Options Brokerage Firm. Contracts for Difference (CFDs) Direct electronic access to OTC products that let you trade the difference between current and future pricing of a share, index or a currency-pair.

In addition to the potential tax benefits, trading CFDs at IB offers the following benefits: Transparent, Low Commissions and Financing Rates - The starting commission rate is only 0.05% on all share CFDs, with lower rates available for active traders. Overnight financing charges start at only benchmark +-1.5%, also with lower spreads available for larger balances. We challenge you to find a better offering. For more information, see our CFDs Commissions page. Trade CFDs Alongside the Underlying Shares - Our Universal account lets you view and trade multiple asset types from the same screen. View the CFD ticker on one line and the underlying share ticker on the next. Trader Workstation, our desktop trading platform, supports stocks, options, futures, forex, metals, funds, CFDs and bonds all from the same account statement and same trading window. Margin Efficiency - CFD margin requirements are generally more favorable than stock margin requirements. Retail clients are subject to a minimum regulatory initial margin of 20%. For additional details and examples please see IB ESMA Margin Implementation. Efficient CFD Reference Pricing - The IB CFD price reflects the exchange-quoted price for the underlying share. IB uses its efficient Smart Routing technology to determine your CFD reference price. With other brokers, you run the risk of not getting the best possible price. Our clients have the ability to add quotes to the exchange book in the same way they would trading stocks. This is possible because IB will match all CFD orders immediately with a hedge-order.

As a result a non-marketable CFD order will create a matching non-marketable order for the underlying share on the exchange. IB Index CFDs present an opportunity to gain broad market exposure more easily than with many other instruments. IB Index CFDs also offer these important benefits: Flexible Exposure to Global Markets - IB Index CFDs can be traded in lots as small as 1X the index level. Unlike the related futures, IB Index CFDs do not expire, saving rollover related costs and risks. Low Commissions and Financing Rates - Depending on the index, commission rates are only 0.005% - 0.01%. Overnight financing rates are just benchmark +-1.5%. Transparent Quotes - Unlike other Index CFD providers, IB charges a transparent commission. We don't widen the spread of the related future like some other brokers. The IB Index CFD quotes accurately represent the spreads and price movements of the related future*, and there are no requotes. What you see is what you get. Margin Efficiency - IB Index CFDs are margined at the same low rates as the related future, adjusted for contract size. Retail clients are subject to minimum regulatory margins of 5% or 10% depending on the index. For additional details and examples please see IB ESMA Margin Implementation. *IB hedges all index CFD trades, and does not operate a dealing desk. Fills cannot be guaranteed in extreme markets.

Forex and CFD Basics. We always encourage our clients to obtain maximum information before starting trading. Please note that Forex and CFD trading involves significant risks. It is crucial to understand how the market works as well as the meaning of the specific trading terms. Below you can find some basic information about the market and trading: Forex, or FOReign EXchange, is the exchange of one country’s currency for another country’s currency. Example: Sam lives in the US and is traveling to Europe. Sam has USD and needs to buy EUR. The current exchange rate is 1.3000 USD for 1 EUR. Sam buys 1000 EUR by selling 1300 USD (1000 x 1.3000). This is a foreign currency exchange or Forex. The forex market is a place where currencies are traded. To buy EUR with USD you need to go to a bank or a forex bureau and sell your USD for EUR. Each bank or money changer has its own rate.

The forex market consists of all these banks and money changers; it is not just one special place or one exchange. The forex market is decentralized and it is huge, with a turnover of around 4 trillion USD a day. It is much bigger than the equity market and is extremely liquid and volatile. Trading involves buying or selling one asset in exchange for another asset. Online trading involves a trading process that is carried out via the Internet. Users can access online trading platforms on the Internet. They can see current market prices and make deals as well as oversee all their trading activity. A CFD, or a Contract for difference, is an agreement between two parties to exchange the differential between the opening and the closing prices of a contract at the moment of the contract closure, with this differential multiplied by the number of units of the asset specified in the contract. A CFD is a derivative linked to the underlying asset price. It does not involve physical asset delivery. When you trade in forex online, you do not buy or sell real assets. If you open EURUSD long, you do not physically buy euros and sell dollars. You trade CFDs. You make a deal that, at the moment you close the deal, you will receive or pay the differential between the opening and the closing prices multiplied by the number of units. Example: Sam opened 1 standard lot of EURUSD long (that is, Sam bought 100,000 EUR-versus-USD CFDs).

At the time of Sam's purchase, the current rate was 1.3000. Sam has just closed and the closing rate was 1.4000. When he closed, Sam made a profit = (1.4000 - 1.3000) x 100,000 = 10,000 USD. Currencies differ from other assets because they are traded in pairs. When you trade shares or gold, you buy or sell with money. With forex, you trade one currency against another currency: you buy one currency and sell the other. Therefore you are trading two currencies, or a currency pair, simultaneously. Example: When you buy EURUSD, you buy euros and sell dollars. Currencies in a currency pair are denoted by 3 capital letters according to the International Standard for currency codes - ISO 4217. The first 2 letters are the same as the country code (according to the International Standard for country codes, ISO 3166). And the third letter represents the currency name. Example: USD = US dollar, where "US" = the United States and "D" = dollar. Currency pairs are made up of the first currency - the base currency - and the second currency - the term (or counterquote) currency. There is a common international practice regarding which currencies are base currencies and which are counter currencies in currency pairs based on the following specific priority rankings: The single currency. New Zealand dollar. United States dollar.

These are the world's main currencies. Other currencies are generally quoted against one of the major currencies. GBPUSD: GBP is the base currency and USD is the counter currency. EURGBP: EUR is the base currency and GBP is the quote currency. USDSEK: USD is the base currency and SEK (Swedish krona) is the term currency. If currencies are quoted according to this practice, the quotation is "direct", if vice versa - "indirect". Example: EURUSD, where EUR is the base currency and USD is the counter currency, is a direct quote while USDEUR is an indirect quote. The most traded currency pairs in the world are called "majors". They occupy the largest share - about 85% - of the forex market. The majors are: Cross-currency pairs that consist of the main currencies e. g. EURGBP, EURJPY or GPBJPY are called "crosses" and are also actively traded. Other currency pairs, where a non-main currency is traded against a main currency, are called "exotics"; e. g. USDSGD (Singapore dollar) or USDHKD (Hong Kong dollar). When you buy an asset, you are going "long". When you sell, you are going "short".

Example: Sam buys stock, so he has opened a long position. When you trade currencies, you buy one currency and simultaneously sell another currency. So you are going long for one currency and simultaneously opening a short position for another currency. Example: When Sam buys EURUSD, Sam is going long for EUR and going short for USD. Quotes for trading instruments usually have two sides: the bid price and the ask (offer) price. The bid price is the price of an asset at which the market or broker is ready to buy from a trader (that is, the trader can sell, or go short, at this price). The Ask or Offer price is the price at which a trader can buy an asset. Example: The quoted EURUSD rate at the moment is 1.30291.3030. This means that 1.3029 is the bid price - a trader can sell EURUSD at this price, whereas 1.3030 is the ask price - a trader can buy EURUSD at this price. The differential between the bid price and the ask price is the spread.

Example: The current rate for gold is 1750.11750.2. This means that the spread is 1750.2 - 1750.1 = 0.1. The pip is the smallest price increment. Example: Currency pair prices used to have 4 digits after the decimal point (e. g. EURUSD at 1.2539), and 0.0001 was the smallest amount by which the price could change (e. g. from 1.2539 to 1.2540). Now, however, prices can change by one-tenth of a pip, or by 1 fractional pip, also called a pipette. Example: USDJPY was usually quoted with 2 digits after the decimal point, e. g. 77.2177.23, and 1 pip = 0.01. Now you can see the following quotation - 78.51378.524, where the smallest price change is 0.001 = 0.1 pips = 1 pipette. So the pip traditionally was the smallest price increment - 0.0001 for almost all currency pairs and 0.01 for pairs with JPY as a quote currency. And despite the fact that a currency pair can now be quoted with more decimal places thanks to more precise pricing, the pip remains the same. To calculate quickly how much your position P&L would change in case of certain price movements, a Pip Value is used. The Pip Value shows the position P&L change if the price goes up or down by 1 pip. Pip Value = Position Volume x Counter Currency 1 pip. As a result, you get 1 pip value in terms of the counter currency. Example: Position 1 lot of EURUSD. Pip Value = 100,000 x 0.0001 = 10 USD. However, it is more important to know the value denominated in your account currency. Pip Value in Account Currency = Pip Value Account Currency-Counter Currency Rate.

Example: Position 1 lot of EURJPY. Account Currency - USD. USDJPY = 80.00. Pip Value = 100,000 x 0.01 = 1,000 JPY. Pip Value in USD = 1,000 80.00 = 12.5 USD. A lot is a standard size of a transaction. It is measured in base currency units. The common lot sizes are: Standard: 100,000 Mini: 10,000 Micro: 1,000 Nano: 100. Example: 1 standard lot of EURUSD = 100,000 euro; 1 nano lot of EURUSD = 100 euro. Equity is the amount of money you have if you close all your positions. Equity equals the balance plus P&L: Equity = Balance + P&L. Example: Sam's balance is 2,000 USD. Before he opens any positions, his equity = his balance = 2,000 USD. Sam buys 1 standard lot of EURUSD. The price goes up and his P&L is 1,000 USD. Now Sam's equity = his balance + P&L = 2,000 USD + 1,000 USD = 3,000 USD. Margin is the amount of money required to open or maintain a position. The initial margin required to open a position equals the position divided by leverage: Initial Margin = Position Leverage. The maintenance margin requirement (Stop-Out Level) is the level below which the position is closed: Maintenance Margin = Initial Margin x Stop-Out Level. The used margin is the total amount of money required to open current positions. The free margin is the amount available on your account to open new positions. Free Margin = Equity - Used Margin, where Equity = Balance + P&L. Example: Sam's account balance is 2,000 USD. His leverage is 1100. Sam wants to open 1 standard lot of EURUSD. The current EURUSD rate is 1.3000. Stop-out = 40%. Initial Margin = 100,000 EUR 100 = 1,000 EUR (or 1% margin requirement) = 1,300 USD. In this example Sam needs to have 1,300 USD on his account to open 1 lot of EURUSD.

Maintenance Margin = 1,300 USD x 40% = 520 USD. When equity on Sam's account goes below 520 USD, the position will be closed automatically. Used Margin = SUM (All Initial Margins) = 1,300 USD. Equity = 2,000 USD. Free Margin = 2,000 USD - 1,300 USD = 700 USD. Leverage is a gear or a multiplier required to open a position bigger than your deposit. In online forexCFD trading leverage is the credit that a broker provides to a trader to increase the trader's open position and correspondingly the trader's Profit & Loss (P&L). Example: Sam deposits 1000 USD into his account. Sam's broker provides him with a 1100 leverage. The maximum position Sam can open equals his deposit multiplied by his leverage = 1000 USD x 100 = 100,000 USD. Sam's P&L is correspondingly multiplied by 100. If you open a position and do not close it by the end of the same day, your position will be rolled over to the next day. Rollover is achieved by two simultaneous deals: your position closure at the end of the day at a spot rate and the reopening at the beginning of the next day at a forward rate. This mix of two opposite deals in one operation is called a swap. The differential between the forward and the spot rates is called swap points. The forward rate is based on the idea that amounts in both currencies are paid with an overnight interest rate. The differential between these two rates, or the Interest Rates Differential, results in positive or negative swap points. Forward Rate = Spot rate x (1 + interest of the quoted currency x daysbase) (1 + interest of the base currency x daysbase) Swap Points = Forward Rate - Spot Rate = Spot rate x ((1 + interest of the quoted currency x daysbase) (1 + interest of the base currency x daysbase)) -1) ? Spot Rate x (Interest Rates Differential) x daysbase. Interest Rate Differential = Interest of the quoted currency - Interest rate of the base currency.

Example: Sam buys 1 standard lot of EURUSD on Monday. The EURUSD spot rate is 1.25, the USD (quoted currency) interest rate is 1%, and the EUR (base currency) interest rate is 3%. Sam keeps this position until Tuesday. Forward Rate = 1.25 x (1 + 1% x 1360) (1 + 3% x 1360) = 1.249931. Interest Rates Differential = 1% - 3% = -2% annual. Swap Points = 1.25 x ((1 + 1% x 1360) (1 + 3% x 1360) - 1) = - 0.00006944 or approx. -0.69 pips. Swap Points = 1.25 x -2% x 1360 = -0.00006944 or approx.-0.69 pips. In this case Sam's position was closed on Monday at 1.25 and re-opened on Tuesday at 1.249931, i. e. 1 lot of EURUSD sold at 1.25 and bought at 1.249931 gave the result = 100,000 x (1.25 - 1.249931) = 6.94 USD. Traditionally, unlike stock, commodities and other centralized marketsexchanges, there were no commissions paid in the forex market as the broker's fee was usually included in the spread. This was common practice for all market participants, including big banks. However, developments in ICT led to the creation of Electronic Communication Networks (ECNs). At first ECNs were available for banks and big brokers, enabling them to trade with each other at the best prices available in their network. Each of these networks formed a market with its own pricing and spreads, charging a commission for its services as a technology provider.

Later on, ECNs became available to smaller brokers and their clients. Accounts with access to an Electronic Communication Network are called ECN accounts. On such accounts clients get very tight raw interbank market spreads and are charged a commission for the service. Commissions on the interbank market are charged on a per-traded-volume basis. They are usually quoted in USD per 1 million USD traded volume. To calculate your deal commission, you need to determine your deal volume in USD, divide by one million, and then multiply it by the ECN commission value. ECN commission = Traded Volume in USD 1,000,000 x ECN commission in USD per 1M USD traded volume. Example: Sam is buying 1 lot of EURUSD. The current EURUSD rate is 1.3000. The ECN commission would be 30 USD per 1M USD traded volume. Keep in mind that deal volume is measured in the base currency terms. In this example, Sam's deal volume is 100,000 EUR. The commission when Sam opens the deal = 100,000 EUR x 1.3000 1,000,000 x 30 USD = 3.9 USD. If, for example, Sam chooses to close the deal at the same rate of 1.3000, the commission will be = 100,000 EUR x 1.3000 1,000,000 x 30 USD = 3.9 USD. So in total, Sam will pay a commission of 3.9 USD + 3.9 USD = 7.8 USD. When you trade in MetaTrader 4, please keep in mind that due to system settings the whole commission is charged once at the order opening.

Some brokers offer STPECN accounts with the commission included in the spread, e. g. our MT4.VAR. account. Such accounts are designed specifically for clients who are used to commissions not being charged separately and with all broker fees included in the spread. The trading costs are the same as for the MT4.ECN. accounts. Market Execution (All orders on all account types except for Market Orders on MT4.FIX. accounts). When a trade is opened at market, the trading platform sends a request for an order of a specified size to be filled immediately at the best price available. It is important to note while trading using Market Execution that if the instruments are volatile or otherwise moving quickly, it is possible for the order to be executed at a price above or below the price shown in the trading platform when the trade request was initially submitted – orders are filled at the best available market price. Instant Execution (Market Orders on MT4.FIX. accounts only) Instant Execution may not execute an order if the price is no longer available with the liquidity provider at the moment it is to be executed – this results in a “Requote” which is a notice to inform the trader that the price they requested is no longer available and that they may open their order at a new specified price instead. It is possible to receive several Requotes in a row before an order can be filled. Pending Orders, including BuySell Limit, BuySell Stop, Take Profit and Stop Loss operate as Market Execution Orders on all account types. Execution Price may differ significantly from the Requested Price, especially during low liquidity market conditions, e. g. during news events or at market opening. While there may be a large candle during price spikes, this does not mean that orders had been filled anywhere in the center of that candle because there are no prices available - also known as "price gap". Any Questions? Email Us: [email protected] com. Please note that foregin exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary. All information on this website is not directed toward soliciting citizens or residents of the United States and the United Kingdom.

TW Corp. 8 Copthall, Roseau, Dominica. Easy Forex OTC Trading. The Easy Forex OTC trading offering is unique both in Australia and internationally. The forex broker focuses on risk management tools and software to assist forex trading for new to intermediate traders. View the review below where the key features are reviewed including their best forex trading platform. Easy Forex OTC trading offering has been one of the most innovative with: The introduction of Deal Cancellation in 2017 Fixed Spreads Guaranteed Stops Minimum Balance Protection No Slippage Guarantee. These features and other elements of Easy Forex (now Easy Markets) are discussed in detail below. When Easy Forex OTC trading the unique feature of Deal Cancellation exists which allows a trade to be reversed within a set period. This feature is available on more products from forex to commodities but in certain circumstances may not be offered. The green icon (as shown to the right) is shown when the feature can be applied to a trade. When a trader wants to adopt this feature, they need to click on the Deal Cancellation icon and activate it. Once the trade commences the trader has 60 minutes to cancel the trade before the feature becomes void.

Within the forex trading platform a trader can review how much time is left before the feature becomes inactive. When a trade is cancelled, the amount risked on that trade (their loss) is returned to the Easy Forex account. The same occurs when a stop loss is reached within 60 minutes, with Deal Cancellation returning the money (loss) back to the trading account. It’s critical to point out Deal Cancellation is not free. There is a fee made on each trade based on the market volatility of that forex pairing or CFD at that point-in-time. You also can’t activate this feature after a trade has been made. It must be pre-selected when making the trade initially. Most forex brokers offer variable spreads that periodically change. This gap between ask and bid prices are impacted by volatility, supply and demand.

In general, when liquidity is optimal (regular trading sessions) spreads are tight but outside these periods they can widen. Easy Forex (Easy Markets) offers fixed bidask spreads known as fixed spreads. Fixed spreads means that the forex broker (Easy Forex in this case) sets the spread regardless of volatility or the market conditions at the time. The key advantages of fixed spreads including: a) Improved Transparency. As the graph above highlights, fixes spreads means you know the costs of forex trading. Regardless of the time of the day, volatility or inter-bank rates, you know what the spreads are. These can be factored also into future CFD or forex projectionist using currency modelling. b) Safeguard against volatility. High volatility triggered by key news events such as rate decisions can be confusing due to large bigask fluctuations. With many retail forex traders choosing these periods to trade, having fixed spreads can assist in trading over these periods. c) The potential to lower trading costs. Fixed spreads can help traders budget in advance their trading costs. There may also periods when fixed spreads will be lower than variable spreads.

These two factors make it more straightforward when trading and understanding the cost of CFD and currency trading. Having guaranteed stops is not unique within the forex broker industry. The difference found in this Easy Forex OTC review was that the broker offers guaranteed stops on every trade . This means that when a pre-determined maximum loss on a trade is processed, the actual loss cannot exceed this amount. On the right shows an example scenario in 2015 when many forex traders experienced extreme slippage. The event was when the Swiss Franc became un-pegged leading to a dramatic shift in it’s value. As this shift occurred in just a minute, many traders were not able to exit at their stop - loss level. Losses therefore will have exceeded the trigger level set by some forex traders. Easy Forex on the other hand, still allowed their traders to exist at the pre-determined level set. Unlike the majority of forex brokers that charge a premium for guaranteed stop-loss orders, Easy Forex has no extra charges for this feature. 4) Minimum Balance Protection. Easy Forex (now called Easy Markets) offers one of the higher leverage levels of 400:1. This amplifies the exposure a trader has to the market by multiplying the deposit made by up to 400x.

For example, a deposit of $300 would allow up to $120,000 to be traded on a currency pairing. A movement of just 0.1% would lead to a profit or loss of $120 which is almost half the deposited amount. The issue with such high levels of leverage is that when no guaranteed stop loss order is made, the traders losses can exceed their deposit. There are a number of forex brokers that have been known to chase traders for amounts owned due to this exact circumstance. Easy Forex though offers negative balance protection which means they will exit the trader when this occurs and ensure losses don’t exceed their deposit. This is an excellent risk management tool. Over The Counter (OTC) Trading Explained. OTC trading refers to both forex trading and CFD trading. Both trading options utilise almost identical execution process. The ability exists to seamlessly enter and then exit specific markets speculating on them rising or falling. Forex traders and CFDs both use the same forex trading platform. Charting and pricing are almost identical as the are both are OTC (over the counter) market products. Trades are made through financial institutions including banks.

There are no central exchanges unlike shares. Spreads are the key way forex brokers make their money from OTC trading. In some cases with ECN forex brokers, commissions are charged on-top of these spreads (although the spreads are often lower). Shares and similar products on the other hand often have different fees often based on each trade and volume. CFD Trading vs. Spot Forex Trading. With several similarities to forex trading, it’s no surprise that CFD trading has garnered a lot of interest among our readers. Of course, there are some key differences that you should know about as well. Before y’all read on, make sure you know what in the world CFD trading is all about. CFD trading spans a larger set of financial markets, as these contracts can involve various commodities or equity indices of several countries. Some brokers even offer CFDs on stocks traded in different exchanges, opening a very wide realm of trade opportunities! Compared to spot forex trading which is limited to the currency market, CFD trading does seem to offer a much broader array of trading choices. Bear in mind though that some assets are often limited to their local denomination (ex: S&P 500 against USD or shares of Royal Dutch Petroleum against GBP). Factors that affect price movement in CFD trading depends on the markets in which the asset is part of. For instance, crude oil CFD prices are mostly driven by supply and demand or by seasonality. Prices of equity CFDs can be determined by business factors or company-specific events, such as earnings or acquisitions. Meanwhile, price movements in the spot forex market are mostly influenced by fundamental factors, such as economic growth and monetary policy expectations. Risk sentiment also plays a role in currency price action, along with geopolitical tension and to an extent, environmental factors.

CFD and forex trades are generally executed in the same manner in an OTC market under a decentralized exchange. Both types of trading don’t involve the physical transfer of the assets, as profit or loss are calculated based on the opening and closing prices. Because of these similarities, several brokers actually offer platforms that cater to both CFD and spot forex trading. Both spot forex trades and CFD trades make use of margin, with the former generally quoted through a leverage ratio (ex: 1:100 or 1:10) and the latter stated as a fixed percentage (ex: 1% or 5% margin factor). If you need a quick review on what these terms are all about, it’s time for you to head back to our School of Pipsology lesson on margin and leverage. In a nutshell though, both types of trading allow you to control a larger amount of money with the margin as your “good faith deposit” to the broker. As always, remember that leverage can be a double-edged sword! With forex trading, transaction costs are generally based on the bid-ask spread quoted by the broker. In CFD trading, transaction costs can involve commissions, which vary depending on the underlying asset. The costs of trading equity CFDs are still generally lower compared to purchasing actual shares while index-based CFDs don’t usually carry commission costs. CFD positions held open overnight can also incur overnight financing costs, which consists of a daily charge based on the size of the contract and often linked to LIBOR or central bank benchmark rates. With that, trades kept open for much longer are subject to increasing interest charges, which can wind up eating a huge chunk of your trade returns. On the other hand, financing costs on short CFD positions are typically received by the trader.

Brokers offering commodity CFDs usually have the futures market as the basis for their contract pricing, which means that there may be expiry dates and settlement costs as well. The broker can arrange an automatic rollover when the settlement date of the associated futures contract is reached or deduct a cash settlement fee from the CFD position, which could also significantly reduce profits if you keep the trade open for a long time. If you are considering trying your hand in CFD trading, it is recommended that you work with markets that you are more or less familiar with. As with forex trading, you might be better off playing with a demo account first before risking real money in a relatively unfamiliar territory. *Where 24 hour market is unavailable, it may result in EOD wider spreads. Likewise, following wide market volatility 10% margin stipulated. Forex is the world's largest financial market which allows participants to buy, sell, exchange and speculate on currencies. Daily transaction volumes of the Forex market are estimated as high as 4 trillion USD. Banks, commercial businesses, investment firms, hedge funds and retail investors trade and invest in Forex. Forex trading enables to speculate on the relative strength of one currency against another. It is a very easy market for anyone to access In trading forex you generally only need only a margin to get started. However, it is possible to lose much more than your initial margin if the market turns sharply against you. New to Forex trading? Find out more in Forex Introduction Try out free demo Forex trading account right now to test it yourself. Trial Demo Forex Account Ready to start Forex trading?

Open a live Forex trading account today! Open Live Account. Risk Warning & Disclaimer. Trading in futures, forex and Over the Counter (OTC) products offered as Contract For Differences (CFDs) by Pacific Financial Deri vatives Limited, company #973842 is speculative in nature and not appropriate for all investors. Investors should only use risk capital when trading futures, forex and CFDs because there is always the risk of substantial loss. It is important investors carefully consider their objective, financial situation and level of e xperience. It is recommended that investors seek independent advice before trading. Account access, trade executions and system response may be adversely affected by market conditions, quote delays, system performance and other factors. Product Disclosure Statement and PFD General Terms & Conditions.


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