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Back in 2007, AxiTrader was established on a basic idea: to be the broker we 'd want to trade with. We've because grown to turn into one of Australia's largest and leading Forex brokers.
As we're traders too, we comprehend you desire a terrific 24-hour service, tight spreads and fast execution with very little slippage. That's exactly what we deliver. Our trading solutions are sophisticated enough for experienced traders yet basic enough for those with less experience. Whatever your Forex experience, we've got an option that matches your needs.
We assist traders using Forex as an asset class to satisfy part of their trading portfolio. Our trading platform offers you access to the most current market data and we provide remarkable customer support. Our pricing and liquidity is sourced from multiple destinations in Forex markets. At AxiTrader, our focus is constantly on execution, service and stability. We strive more difficult to be the finest-- it's what separates us from our competition and makes us one of Australia's biggest domestic Forex brokers. Our vision is to keep providing exceptional trading support and become the world's leading company of online forex trading services.
How do we keep our spreads low?
In nearly a decade of company, AxiTrader has actually developed a substantial network of tier one prime brokers and liquidity providers; international banks and financial institutions. Working with these relied on sources we have access to a larger pool of liquidity that allows us to keep consistently low spreads and pass them on to our customers.
We provide this finest spread rates to our clients through investments in technology. With a world-class rates engine and a global network of servers we're able to digitally aggregate real-time rates from our liquidity providers and the best forex strategy ever recognize the best online forex brokers available bid and offer.
As a result, our pricing will reflect even the smallest rate modifications in close to real-time, for every global currency pair, bringing you as close as possible to institutional-grade commodity prices.
CFD & Indices Basics
WHAT ARE CFDS?
CFD means Contracts for Difference, with the difference being between where you enter a trade and where you exit. Basically, when the position is closed, you'll receive the profit or incur the loss on that difference.
If you have actually purchased gold for $1600, you do not have an ounce of gold that you can hold, rather you bought a contract from AxiTrader that will increase in value if the Gold rate boosts. For example, when you trade a CFD you're speculating on the movement of the price just, rather than standard stocks where you acquire a physical asset. When combined with leverage, CFDs give you fast, economical and flexible exposure to a host of global monetary products.
WHY TRADE CFDS?
- If you're looking to buy the rate movements of instruments, instead of acquiring physical assets
- To make the most of swift variations in the underlying instrument or security. This is popular with short-term financiers looking to profit from overnight and intra-day movements in the market
- To benefit from leverage and spread capital across a variety of various instruments rather than tie it up in a single financial investment (note: this technique can increase risk).
- As a risk management tool to hedge exposure.
EXAMPLE GOLD CFD TRADE.
If the gold (XAUUSD) price is $1600.00, it indicates an ounce of gold is traded at US$ 1600.00. The cost of silver is its rate per ounce in USD.
If you have actually purchased gold for $1600, you do not have an ounce of gold that you can hold, however you rather have the commitment to buy XAU at US$ 1600. You sell the XAU and close your exposure when you close your position. If you offer it for $1605.00, you have made profit of $5 for each ounce (device) of gold in your contract. The very same idea uses to silver trading. If you have bought silver (XAGUSD) for $28.00 and sell at $28.50, you would have earned a profit of $0.50 for every single ounce of silver in your contract.
INDEX FUTURES ROLLOVERS EXPLAINED.
AxiTrader's Index agreements are based on the appropriate futures exchange rate. Because they are related to a definitive date, futures contracts expire. There are lots of months traded and the forward commodity prices can be higher or lower depending upon market conditions.
In order to eliminate last day volatility, at AxiTrader we switch from using the front month contract into the 2nd month's contract one trading day prior to the exchange expiry.
When the Australian SPI contract for March ends, an example of this is. The June rate needs to be utilized and the cost on the AxiTrader MT4 platform may increase or decrease depending on the value of the June contract relative to the March contract. This is certainly not a rate rise or fall in the SPI but simply a transfer to a new reference cost, for that reason no profit or loss will be sustained as a result.
In order to ensure this does not affect our customers, a cash adjustment has to be made. This is described in the copying:.
SPI March closes at 5050/5051 and SPI June opens at 5000/5001.
Your Position: 10 Buy contracts.
It closes on the old Bid rate of 5050 and reopens on the brand-new Ask price of 5001 if your position is a Buy. Due to the fact that you remain in a Buy and the new market rate has reduced, your open trade P&L has actually made a loss. As an outcome you will get a favorable adjustment quantity in your swap column equivalent to the difference of the old bid and the brand-new ask.
You will receive (5050-5001) * 10 contracts = $490AUD.
Your Position: 10 Sell agreements.
If your position is a Sell, it closes on the old Ask cost of 5051 and resumes on the new Bid rate of 5000. Your open trade P&L has actually made a gain due to the fact that you are in a Sell and the new market cost has decreased. As a result you will get a negative adjustment quantity in your swap column equal to the difference of the old ask and the new bid.
You will get (5051-5000) * 10 contracts = -$ 510AUD.
Accounts will be money changed on positions held at the following times:.
HSI Future-- Close of business on the day 3rd to last business day of the contract month.
CAC40 Future-- Close of business on the day before the 3rd Friday of expiry month.
DAX30 Future-- Close of business on the day prior to the 3rd Friday of expiry month.
S&P Future-- Close of business on the Wednesday the week before the 3rd Friday of expiry month.
FT100 Future-- Close of business on the day prior to the 3rd Friday of expiry month.
DJ30 Future-- Close of business on the Wednesday the week prior to the 3rd Friday of expiry month.
SPI200 Future-- Close of business one day before the 3rd Thursday of expiry month.
OIL ROLLOVER EXPLAINED.
AxiTrader's oil contract (WTI) is based on the ICE futures cost (Front-Spot Month). This futures rate is the largest cost standard for the international oil market.
Futures agreements expire because they are associated to a conclusive date. There are lots of months traded and the forward rates can be higher or lower depending upon market conditions.
In order to eliminate final day volatility, at AxiTrader we switch from utilizing the front month contract into the second month's contract one trading day prior to the exchange expiry.
When the WTI (West Texas Intermediate) contract for September expires, an example of this is. The October cost requires to be used and sovremennik.ws the rate on the AxiTrader MT4 platform might decrease or increase, depending on the value of the October contract relative to the September contract. This is certainly not a price rise or fall in oil however simply a relocate to a new reference cost and for that reason no profit or loss will be incurred as an outcome.
In order to ensure this does not influence our customers, a cash adjustment has to be made. This is explained in the following examples:.
Example 1: Long position of 1000 barrels.
September Contract closes @ $110.00.
October Contract opens @ $111.38.
Cash adjustment of-- $1,380 is made on account.
Profit of $1,380 is made on open position.
Net financial effect is no.
Example 2: Short position of 2000 barrels.
September Contract closes @ $110.00.
October Contract opens @ $111.38.
Cash adjustment of +$ 2,760 is made on account.
Loss of $2,760 is sustained on employment opportunity.
Net monetary impact is no.
The price of silver is its price per ounce in USD. The June rate requires to be utilized and the price on the AxiTrader MT4 platform may increase or decrease depending on the value of the June contract relative to the March contract. If your position is a Buy, it closes on the old Bid price of 5050 and resumes on the brand-new Ask price of 5001. If your position is a Sell, it closes on the old Ask price of 5051 and resumes on the brand-new Bid cost of 5000. The October cost needs to be used and the rate on the AxiTrader MT4 platform might decrease or increase, depending on the value of the October contract relative to the September contract.
AxiTrader is a registered business name of AxiCorp Financial Services Pty Ltd (AxiCorp). AxiCorp (ACN 127 606 348) is authorised and regulated by the Australian Securities & Investments Commission (ASIC) AFSL number 318232. Investing in over-the-counter derivatives carries significant risks and is not suitable for all investors. You could lose substantially more than your initial investment. When acquiring our derivative products you have no entitlement, right or obligation to the underlying financial asset. AxiCorp is not a financial adviser and all services are provided on an execution only basis. AxiCorp is authorised to provide general advice only and information is of a general nature only and does not take into account your financial objectives, personal circumstances. AxiCorp recommends that you seek independent personal financial advice. A Product Disclosure Statement (PDS) for our financial products and our Financial Services Guide (FSG) are available at www.axitrader.com or can be obtained free of charge by calling AxiCorp on 1300 888 936 (+61 2 9965 5830). The PDS and FSG are important documents and should be reviewed prior to deciding whether to acquire, hold or dispose of AxiCorp’s financial products or services. The information on this website is for Australian residents only.