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FOREX

$4 Trillion Daily Turnover

The liquidity and competitive pricing available in this market are unsurpassed, and today with the irregularity in performance in other markets, the growth of Forex trading, investing and management is accelerating.

Trade Currency And Price Currency

A trade requires two currencies (a cross) in which one will be a long (bought) and the other, a short (sold) side.

This means one is speculating in the prospect of one of the currencies appreciating in value against a relative weakening of the other. The trade currency is often the one with the highest value. When closing the position, the opposite trade is performed. The profit or loss will be apparent in the difference of the amount of dollars credited and debited for the two transactions. Dollars, in this case, is the price currency.

INFINOX will automatically exchange your profits and losses into your base currency.

Stop-Loss Discipline

There are significant opportunities and risks involved for investors in the Forex markets.

Aggressive traders might experience daily profit/loss swings of 20 to 30%. This calls for strict stop-loss policies in positions that are moving against you.

Fortunately, there are no daily limits on Forex trading and no restrictions on trading hours, other than the weekend. This means that there will nearly always be an opportunity to react to moves in the main currency markets. Equally, there is a lower risk of being caught without the possibility of closing out one’s positions.

Protective Stop-Loss Controls

For speculative trading, we would always recommend the placement of protective stop-losses.

Using the MT4 platform, investors can easily place and change all orders, including up to three contingent trade orders for each trade while watching developments in the market in real time. These contingent orders comprise two slave orders placed on an ‘if done’ basis, if a primary order is executed. The two slave orders are themselves related as ‘OCO’ orders allowing you to define both a profit taking and a stop-loss order around the position if the primary order is executed. If one of the orders is executed, the opposite order will be cancelled automatically.

Dealing Spread

When trading Forex, investors are quoted a dealing spread, which offers a buying and selling level for the trade. When the investor accepts the offered price and receives a confirmation, the trade is done!

The dealing spread for major currencies can range according to market liquidity, however you will find major currencies typically range between 1-3 points.

For example, USD/JPY is trading at 99.502/99.522. This means you are selling US dollars against the Japanese Yen at 99.502 and buying at 99.522. Unless you opt to trade with our Pro Account, there are no monetary commissions charged per trade, rather, the dealing spread includes the cost of trading.

Spot And Forward Trading

When trading Forex, investors are quoted a spot price. This means that if no further steps are taken, the trade will mature and be settled after two business days. If required, however, the spot trade will be automatically swapped forward with the prevailing rate for maturity the next business day, every trading day, until the position is closed. This can be undertaken on a daily basis or for a longer period.

Investors may also swap their trades forward from a few days up to several months depending on the time frame of their chosen investment strategy. Although a forward trade is for a future date, the position can be closed out at any time. The closing part of the position is then swapped forward to the same future value date.

EDUCATION

Together. Each Step Of The Way

OVERNIGHTS

Swaps And Rollover Rates

When you buy or sell a currency, a Swap or Rollover fee may be paid or charged to you. This is the funding (interest) component which is needed to maintain your position. The amount of which you receive or pay will depend on the relative interest rate yield of each currency in the traded pair, among other important considerations such as money market rates and liquidity provider charges.

Spot Foreign Exchange (“Forex”) and Metals trades are settled two business days from the entry date. As trading through INFINOX does not involve physical delivery, all trades left open at the end of a trading day GMT +3 (23:59:59 Platform Time) will be rolled over to a new value date and as such will have exposure to a swap charge or credit.

It is important to note that the rollover at the close of Wednesday’s trading will be three times the usual amount. This charge is market convention, accounting for weekend settlement.

INFINOXswap rates are calculated using a consensus of our up-stream liquidity partners and may be adjusted both positively and negatively in the interest of competitiveness and/or local costs.

Swap rates for individual currency pairs and metal contracts can be viewed by referring to your MT4 ONE Terminal, right click on Market Watch, left click on Symbols followed by Properties. Rates shown are expressed in ‘points’ where 1.0 point is equal to one tenth of 1 Pip.

FREE Introduction to Foreign Exchange e-book

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You are automatically entitled to receive the INFINOX Introduction to Foreign Exchange e-book, featuring the Golden Rules of Trading, written by our own market analysts.

So what are you waiting for?

To download your free copy, click here

Trading FOREX FX and CFD’s is high risk. Losses can exceed deposits.