Spreads
GFX offers 2 to 3 pip spreads in major currencies.
Margin Requirements
All currency products can be traded on 0.5% margin (200:1 leverage).
Overnight charges
Open positions may have overnight charges applied daily at 5pm EST. The exact amount, in dollars per lot, can be viewed from your trading software as follows.
Commissions and Fees
Zero for all accounts and all products, unless agreed otherwise.
Trading Hours
24 hours for all products beginning Sunday night at 5pm EST and ending Friday afternoon 5pm EST.
Placing Orders
Trading is most efficiently conducted on GFX Global Trading Software. However, GFX also supports trading by telephone or online chat.
Tick values and lot sizes
Currencies are set at 100,000 units of the base currency per lot. Metals vary by product. Fractional lot trading is also possible (e.g., trade 0.1 lots for a transaction size of 10,000 units).
Posted by ashwin ravichandran 0 comments
Gold and Silver Trading
GFX offers a convenient and efficient means to trade precious metals online:
Margin requirements are less than 1% (over 100:1 leverage)
Zero commissions on all trades
Prices are good for instant fills on up to 50 lots of gold or silver.
Instant execution straight through to our liquidity provider, eliminating any delays or requotes.
Posted by ashwin ravichandran 0 comments
Forex Trading with GFX
Trade on 2 to 3 pip Spreads
GFX's low spreads improve net trading results, especially for active traders. GFX uses its economies of scale and efficient dealing practices to offer the lowest spreads in retail Forex.
Instant order execution. Orders placed on the GFX software are executed immediately online, up to 100 lots (10 million currency units) at a time. Traders can also place stops, trailing stops, or limits on open positions or have them pre-set on market orders.
Zero Commissions and Fees
GFX clients always trade with zero commissions and no transaction fees, unless agreed otherwise.
Powerful Trading Software
GFX "GlobalTrader" software sets new standards in online trading functionality, performance, and ease of use.
Fractional lot sizes.
Trading on GFX's software is not confined to only 1 lot increments. Clients can also trade .5 of a lot, 1.2 lot, or any other amount. Each Lot is equivalent to 100,000 currency units.
Real-time account and margin information.
Your account balance, usable margin, and value of open positions are displayed in the trading software in real-time.
Real-time Charts, News and Quotes.
GFX GlobalTrader software has charts, news, and quotes easily accessible from the menus.
Multiple Account Trading.
Trading managers and funds can trade multiple accounts from a single window. The GlobalTrader software allows a block order to be automatically split up among multiple customer accounts as specified by the trader.
"Mini" Trading Capability.
Set the number of Lots to "0.1" to trade a mini position with 1 pip equal to about $1. Margin requirements for these positions are $50.
Hedging capability.
Traders can open positions in the same currency in opposite directions, without the positions offsetting and without using additional margin.
Service and Support.
GFX clients have access to 24 hour technical support, as well as 24 hour trading by telephone or chat.
Lower Margin Requirements
Trade all currencies on 0.5% margin; equivalent to 200:1 leverage. Lower margin requirements mean more trading flexibility without getting a margin call.
Wide selection of products
Trade any of 49 major and exotic currency pairs, plus gold and silver. All products are commission-free with the same low margin requirements.
Limited Risk
GFX's clients can never lose more than their funds on deposit.
Security of funds
With GFX, your funds are secure and properly handled by a supervised broker with over CHF 10 million of capital. Client funds are segregated from GFX's own assets, thereby offering security of client funds.
Saturday, February 14, 2009
Secrets to emotion free trading
• Always use Stop Orders: Always remember not to put your money on a trade having no top order.
• Stop Trading, after losing 3 trades in one day: According to successful traders if you lost three trades in one day then stop trading and avoid plowing you in a huge hole.
• If you get more than 100 point in a trade then you must move your stop order to manage. If you obtain respectable money in a trade then do not allow yourself to lose money on that trade.
• Wait for an indication to get into the market and just don't take an inoculation. Trader usually gets themselves into dilemma if they have sensitivity about the market and act on it. They can be much more successful if they use a chart formation or a technical reason to get into the market.
• Traders must proceed with their best concentration in wits. It is something they should make an effort and do in small amount each and every trade they put on. By this they will realize that only are only responsible for their results.
• Lighten up with your trade. If your trading is not like vocation with avocation, it implies that if you are not enjoying and having fun then it is not worth doing. If you don't take pleasure in it, you won't be successful.
• Last but not least, you don't have to trade everyday. Occasionally traders just leave the market alone and forget about if for a day. It usually refreshes them.
• Stop Trading, after losing 3 trades in one day: According to successful traders if you lost three trades in one day then stop trading and avoid plowing you in a huge hole.
• If you get more than 100 point in a trade then you must move your stop order to manage. If you obtain respectable money in a trade then do not allow yourself to lose money on that trade.
• Wait for an indication to get into the market and just don't take an inoculation. Trader usually gets themselves into dilemma if they have sensitivity about the market and act on it. They can be much more successful if they use a chart formation or a technical reason to get into the market.
• Traders must proceed with their best concentration in wits. It is something they should make an effort and do in small amount each and every trade they put on. By this they will realize that only are only responsible for their results.
• Lighten up with your trade. If your trading is not like vocation with avocation, it implies that if you are not enjoying and having fun then it is not worth doing. If you don't take pleasure in it, you won't be successful.
• Last but not least, you don't have to trade everyday. Occasionally traders just leave the market alone and forget about if for a day. It usually refreshes them.
Calculating Profit and loss
To illustrate an FX trade, consider the following two examples.
Let's say that the current bid/ask for EUR/USD is 1.4616/19, meaning you can buy 1 euro for 1.4619 or sell 1 euro for 1.4616.
Suppose you decide that the Euro is undervalued against the US dollar. To execute this strategy, you would buy Euros (simultaneously selling dollars), and then wait for the exchange rate to rise.
So you make the trade: to buy 100,000 Euros you pay 146,190 dollars (100,000 x 1.4619). Remember, at 1% margin, your initial margin deposit would be approximately $1,461 for this trade.
As you expected, Euro strengthens to 1.4623/26. Now, to realize your profits, you sell 100,000 Euros at the current rate of 1.4623, and receive $146,230
You bought 100k Euros at 1.4619, paying $146,190. Then you sold 100k Euros at 1.4623, receiving $146,230. That's a difference of 4 pips, or in dollar terms ($146,190 - 146,230 = $40).
Total profit = US $40.
Now in the example, let's say that we once again buy EUR/USD when trading at 1.4616/19. You buy 100,000 Euros you pay 146,190 dollars (100,000 x 1.4619).
However, Euro weakens to 1.4611/14. Now, to minimize your loses to sell 100,000 Euros at 1.4611 and receive $146,110.
You bought 100k Euros at 1.4619, paying $146,190. You sold 100k Euros at 1.4611, receiving $146,110. That's a difference of 8 pips, or in dollar terms ($146,190 - $146,110 = $80)
Let's say that the current bid/ask for EUR/USD is 1.4616/19, meaning you can buy 1 euro for 1.4619 or sell 1 euro for 1.4616.
Suppose you decide that the Euro is undervalued against the US dollar. To execute this strategy, you would buy Euros (simultaneously selling dollars), and then wait for the exchange rate to rise.
So you make the trade: to buy 100,000 Euros you pay 146,190 dollars (100,000 x 1.4619). Remember, at 1% margin, your initial margin deposit would be approximately $1,461 for this trade.
As you expected, Euro strengthens to 1.4623/26. Now, to realize your profits, you sell 100,000 Euros at the current rate of 1.4623, and receive $146,230
You bought 100k Euros at 1.4619, paying $146,190. Then you sold 100k Euros at 1.4623, receiving $146,230. That's a difference of 4 pips, or in dollar terms ($146,190 - 146,230 = $40).
Total profit = US $40.
Now in the example, let's say that we once again buy EUR/USD when trading at 1.4616/19. You buy 100,000 Euros you pay 146,190 dollars (100,000 x 1.4619).
However, Euro weakens to 1.4611/14. Now, to minimize your loses to sell 100,000 Euros at 1.4611 and receive $146,110.
You bought 100k Euros at 1.4619, paying $146,190. You sold 100k Euros at 1.4611, receiving $146,110. That's a difference of 8 pips, or in dollar terms ($146,190 - $146,110 = $80)
Leverage & Margin
Leverage trading, or trading on margin, means you aren't required to put up the full value of the position.
Forex trading offers more leverage than stocks or futures - up to 200 times the value of your account. Of course keep in mind that increased leverage also increases your risk.
FOREX.com: No debit balances, no margin calls
At FOREX.com, your risk is only limited to funds on deposit. There are no margin calls in forex trading, so if your account falls below required levels, for your protection we will close out all positions automatically. You'll never lose more money than you have in your account.
More leverage means more opportunity - and more risk
It's crucial to remember: increasing leverage increases risk. To limit downside risk, monitor your account regularly and use stop-loss orders on every open position.
Forex trading offers more leverage than stocks or futures - up to 200 times the value of your account. Of course keep in mind that increased leverage also increases your risk.
FOREX.com: No debit balances, no margin calls
At FOREX.com, your risk is only limited to funds on deposit. There are no margin calls in forex trading, so if your account falls below required levels, for your protection we will close out all positions automatically. You'll never lose more money than you have in your account.
More leverage means more opportunity - and more risk
It's crucial to remember: increasing leverage increases risk. To limit downside risk, monitor your account regularly and use stop-loss orders on every open position.
Understanding Forex Quotes
Reading a foreign exchange quote is simple if you remember two things:
1. The first currency listed is the base currency
2. The value of the base currency is always 1.
As the centerpiece of the forex market, the US dollar is usually considered the base currency for quotes. When the base currency is USD, think of the quote as telling you what a US dollar is worth in that other currency.
When USD is the base currency and the quote goes up, that means USD has strengthened in value and the other currency has weakened. Rising quotes mean a US dollar can now buy more of the other currency than before.
Majors not based on the US dollar
The three exceptions to this rule are the British pound (GBP), the Australian dollar (AUD) and the Euro (EUR). For these pairs, where USD is not the base currency, a rising quote means the US dollar is weakening and buys less of the other currency than before.
In other words, if a currency quote goes higher, the base currency is getting stronger. A lower quote means the base currency is weakening.
Cross currencies
Currency pairs that don't involve USD at all are called cross currencies, but the premise is the same.
Bids, asks and the spread
Just like other markets, forex quotes consist of two sides, the bid and the ask:
The BID is the price at which you can SELL base currency.
The ASK is the price at which you can BUY base currency.
1. The first currency listed is the base currency
2. The value of the base currency is always 1.
As the centerpiece of the forex market, the US dollar is usually considered the base currency for quotes. When the base currency is USD, think of the quote as telling you what a US dollar is worth in that other currency.
When USD is the base currency and the quote goes up, that means USD has strengthened in value and the other currency has weakened. Rising quotes mean a US dollar can now buy more of the other currency than before.
Majors not based on the US dollar
The three exceptions to this rule are the British pound (GBP), the Australian dollar (AUD) and the Euro (EUR). For these pairs, where USD is not the base currency, a rising quote means the US dollar is weakening and buys less of the other currency than before.
In other words, if a currency quote goes higher, the base currency is getting stronger. A lower quote means the base currency is weakening.
Cross currencies
Currency pairs that don't involve USD at all are called cross currencies, but the premise is the same.
Bids, asks and the spread
Just like other markets, forex quotes consist of two sides, the bid and the ask:
The BID is the price at which you can SELL base currency.
The ASK is the price at which you can BUY base currency.
General Market Advice
1. Never chase a stock.
2. Buy when markets are in the grip of panic.
3. Only buy fundamentally strong stocks, which are undervalued.
4. Buy stocks grown in top line and bottom line over the past years.
5. Invest in companies with proven management.
6. Avoid loss-making companies.
7. PE Ratio and Growth in earnings per share are the key.
8. Look for the dividend paying record.
9. Invest in stocks for sure returns.
10. Stocks have been the high yielding asset class over the past.
11. Stocks are an asset class.
12. The basic property of any asset class is to grow.
13. Buy when everyone is selling and sell when everyone buys.
14. Invest a fixed amount each month.
Last But not least Trust our tips and then invest to earn huge profit
2. Buy when markets are in the grip of panic.
3. Only buy fundamentally strong stocks, which are undervalued.
4. Buy stocks grown in top line and bottom line over the past years.
5. Invest in companies with proven management.
6. Avoid loss-making companies.
7. PE Ratio and Growth in earnings per share are the key.
8. Look for the dividend paying record.
9. Invest in stocks for sure returns.
10. Stocks have been the high yielding asset class over the past.
11. Stocks are an asset class.
12. The basic property of any asset class is to grow.
13. Buy when everyone is selling and sell when everyone buys.
14. Invest a fixed amount each month.
Last But not least Trust our tips and then invest to earn huge profit
Economic News
USD - Interest Rate Cut Creates Massive One-Day Loss for USD
In a move anticipated by most market analysts, the Federal Reserve cut target lending rates yesterday to a level not seen in almost 50 years! This was done in an attempt to prevent a widening financial crisis from tipping the U.S. economy into a prolonged recession. It was not the first time the Fed cut rates to stave off further economic disaster during these most recent times of financial hardship.
Less than a month ago the Fed joined the European Central Bank (ECB), as well as other counterparts from the U.K., Canada, Sweden and Switzerland, in a coordinated reduction of interest rates, cutting its target rate by a half percentage point to 1.50%. Now, as a result of yesterday's further rate cut, the Dollar posted its biggest one-day fall against almost all of its major currency counterparts.
The Dollar was already beginning to trade above $1.3200 per EUR in today's early trading sessions, after dropping 2.2 % yesterday, and has also climbed above 1.6500 against the GBP. The Fed may also be expected to lower benchmark interest rates even further in the coming months given the downbeat economic outlook provided by the Fed's policy statement yesterday.
The market has been trading on a recovery theme lately; there is still a lot of uncertainty, and risk aversion is very much in place. If risk appetite continues improving, the Dollar may get even weaker. Despite showing signs of recession in the U.S. economy, the Fed's maneuver put the focus on the interest rate differential, and that might force the Dollar to go even lower no matter how the Advanced GDP figures appear when they are released later today.
In a move anticipated by most market analysts, the Federal Reserve cut target lending rates yesterday to a level not seen in almost 50 years! This was done in an attempt to prevent a widening financial crisis from tipping the U.S. economy into a prolonged recession. It was not the first time the Fed cut rates to stave off further economic disaster during these most recent times of financial hardship.
Less than a month ago the Fed joined the European Central Bank (ECB), as well as other counterparts from the U.K., Canada, Sweden and Switzerland, in a coordinated reduction of interest rates, cutting its target rate by a half percentage point to 1.50%. Now, as a result of yesterday's further rate cut, the Dollar posted its biggest one-day fall against almost all of its major currency counterparts.
The Dollar was already beginning to trade above $1.3200 per EUR in today's early trading sessions, after dropping 2.2 % yesterday, and has also climbed above 1.6500 against the GBP. The Fed may also be expected to lower benchmark interest rates even further in the coming months given the downbeat economic outlook provided by the Fed's policy statement yesterday.
The market has been trading on a recovery theme lately; there is still a lot of uncertainty, and risk aversion is very much in place. If risk appetite continues improving, the Dollar may get even weaker. Despite showing signs of recession in the U.S. economy, the Fed's maneuver put the focus on the interest rate differential, and that might force the Dollar to go even lower no matter how the Advanced GDP figures appear when they are released later today.
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