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Back in 2007, AxiTrader was founded on an easy concept: to be the broker we had actually want to trade with. We've given that grown to end up being one of Australia's biggest and leading Forex brokers.
Our trading options are sophisticated enough for experienced traders yet easy enough for those with less experience. Whatever your Forex experience, we've got a solution that matches your needs.
We assist traders using Forex as an asset class to meet part of their trading portfolio. Our trading platform provides you access to the most recent market information and we deliver exceptional customer support. Our prices and liquidity is sourced from several destinations in Forex markets. At AxiTrader, our focus is constantly on integrity, service and execution. We make every effort more difficult to be the finest-- it's exactly what separates us from our competitors and makes us among Australia's largest domestic Forex brokers. Our vision is to keep delivering exceptional trading assistance and end up being the world's leading carrier of online forex trading services.
How do we keep our spreads low?
In nearly a decade of company, AxiTrader has developed an extensive network of tier one prime brokers and liquidity providers; financial institutions and global banks. Working with these relied on sources we have access to a broader pool of liquidity that allows us to retain regularly low spreads and pass them on to our customers.
We provide this best spread pricing to our clients through financial investments in innovation. With a world-class commodity prices engine and a global network of servers we're able to electronically aggregate real-time commodity prices from our liquidity providers and recognize the very best available bid and offer.
As an outcome, our pricing will reflect even the tiniest cost modifications in close to real-time, for every single global currency pair, bringing you as close as possible to institutional-grade commodity prices.
CFD & Indices Basics
WHAT ARE CFDS?
CFD represents Contracts for Difference, with the difference being in between where you enter a trade and where you exit. Put simply, when the position is closed, you'll get the profit or sustain the loss on that difference.
If you have bought 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 cost increases. For example, when you trade a CFD you're hypothesizing on the movement of the price just, instead of standard stocks where you acquire a physical asset. When combined with leverage, CFDs provide you fast, flexible and affordable exposure to a host of international financial items.
WHY TRADE CFDS?
- If you're seeking to purchase the cost movements of instruments, instead of purchasing physical assets
- To benefit from speedy changes in the underlying instrument or security. This is popular with short-term financiers planning to benefit from overnight and intra-day movements in the market
- To make the most of leverage and spread capital across a variety of various instruments instead of tie it up in a single investment (note: this technique can increase risk free forex trading strategy (just click the up coming site)).
- As a risk management tool to hedge exposure.
EXAMPLE GOLD CFD TRADE.
If the gold (XAUUSD) cost is $1600.00, it suggests an ounce of gold is traded at US$ 1600.00. The price of silver is its rate per ounce in USD.
If you sell it for $1605.00, you have actually made profit of $5 for every ounce (device) of gold in your contract. If you have actually bought silver (XAGUSD) for $28.00 and sell at $28.50, you would have made a profit of $0.50 for every ounce of silver in your contract.
INDEX FUTURES ROLLOVERS EXPLAINED.
AxiTrader's Index contracts are based upon the pertinent futures exchange rate. Due to the fact that they are related to a conclusive date, futures agreements expire. There are numerous months traded and the forward prices can be greater or lower depending upon market conditions.
In order to eliminate final day volatility, at AxiTrader we change from utilizing the front month contract into the second month's contract one trading day prior to the exchange expiry.
An example of this is when the Australian SPI contract for March ends. The June rate has to be used and the price on the AxiTrader MT4 platform may increase or decrease depending upon the value of the June contract relative to the March contract. This is certainly not a cost increase or fall in the SPI however just a transfer to a brand-new reference rate, for that reason no profit or loss will be incurred as a result.
In order to ensure this does not affect our customers, a cash adjustment has to be made. This is explained in the following examples:.
SPI March closes at 5050/5051 and SPI June opens at 5000/5001.
Your Position: 10 Buy contracts.
It closes on the old Bid cost of 5050 and resumes on the new Ask rate of 5001 if your position is a Buy. Your open trade P&L has actually made a loss because you are in a Buy and the brand-new market cost has actually reduced. As a result 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 get (5050-5001) * 10 contracts = $490AUD.
Your Position: 10 Sell contracts.
It closes on the old Ask price of 5051 and resumes on the brand-new Bid rate of 5000 if your position is a Sell. Your open trade P&L has actually made a gain due to the fact that you are in a Sell and the brand-new market cost has actually reduced. As a result you will receive an unfavorable adjustment quantity in your swap column equivalent to the difference of the old ask and the brand-new bid.
You will receive (5051-5000) * 10 agreements = -$ 510AUD.
Accounts will be cash 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 prior to the 3rd Friday of expiry month.
DAX30 Future-- Close of business on the day before the 3rd Friday of expiry month.
S&P Future-- Close of business on the Wednesday the week prior to 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 before the 3rd Friday of expiry month.
SPI200 Future-- Close of business one day prior to the 3rd Thursday of expiry month.
OIL ROLLOVER EXPLAINED.
AxiTrader's oil contract (WTI) is based upon the ICE futures rate (Front-Spot Month). This futures price is the largest cost benchmark for the international oil industry.
Futures agreements expire since they are related to a definitive date. There are many months traded and the forward costs can be greater or lower depending upon market conditions.
In order to eliminate last day volatility, at AxiTrader we switch from utilizing the front month contract into the 2nd month's contract one trading day prior to the exchange expiry.
When the WTI (West Texas Intermediate) contract for September ends, an example of [empty] this is. The October cost has to be used and the cost on the AxiTrader MT4 platform may increase or decrease, depending upon the value of the October contract relative to the September contract. This is clearly not a price increase or fall in oil however simply a transfer to a brand-new reference price and for that reason no profit or loss will be incurred as an outcome.
In order to guarantee this does not affect our clients, a cash adjustment has to be made. This is explained in the copying:.
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 monetary 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 financial result is absolutely no.
The cost of silver is its rate per ounce in USD. The June cost requires to be used and the price on the AxiTrader MT4 platform might 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 reopens on the brand-new Ask cost of 5001. If your position is a Sell, it closes on the old Ask rate of 5051 and reopens on the brand-new Bid rate of 5000. The October cost requires to be used and the price 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.