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Back in 2007, AxiTrader was founded on an easy concept: to be the broker we 'd want to trade with. We've given that grown to turn into one of Australia's largest and leading Forex brokers.
Our trading options are advanced enough for experienced traders yet simple enough for those with less experience. Whatever your forex copy signals experience, we've got a solution that matches your requirements.
We help traders using forex trading courses australia as an asset class to satisfy part of their trading portfolio. Our trading platform gives you access to the most recent market information and we deliver exceptional client support. Our rates and liquidity is sourced from several destinations in Forex markets. At AxiTrader, our focus is always on service, integrity and execution. We aim more difficult to be the very best-- it's exactly what separates us from our competition and makes us one of Australia's biggest domestic Forex brokers. Our vision is to keep delivering exceptional trading support and end up being the world's leading company of online foreign exchange trading services.
CFD & Indices Basics
WHAT ARE CFDS?
CFD represents Contracts for Difference, with the difference being between where you enter a trade and where you exit. Basically, price action forex trading strategy when the position is closed, you'll receive the profit or sustain the loss on that difference.
If you have actually bought gold for $1600, you do not have an ounce of gold that you can hold, rather you purchased a contract from AxiTrader that will increase in value if the Gold cost boosts. When you trade a profitable forex trading CFD you're hypothesizing on the movement of the price only, rather than traditional stocks where you purchase a physical asset. When integrated with leverage, CFDs give you fast, affordable and flexible exposure to a host of global monetary items.
WHY TRADE CFDS?
- If you're aiming to purchase the rate movements of instruments, rather than purchasing physical assets
- To make the most of speedy variations in the underlying instrument or security. This is popular with short-term investors planning to profit from overnight and intra-day movements in the market
- To benefit from leverage and spread capital throughout a variety of different instruments rather than tie it up in a single investment (note: this method can increase risk).
- As a risk management tool to commodity prices hedge direct exposure.
EXAMPLE GOLD CFD TRADE.
If the gold (XAUUSD) cost is $1600.00, it implies an ounce of gold is traded at US$ 1600.00. The rate of silver is its rate per ounce in USD.
If you have actually purchased gold for $1600, you do not have an ounce of gold that you can hold, however you rather have the commitment to purchase XAU at US$ 1600. When you close your position, you offer the XAU and close your direct exposure. You have made profit of $5 for every ounce (device) of gold in your contract if you offer it for $1605.00. The same idea uses to silver trading. If you have bought silver (XAGUSD) for $28.00 and cost $28.50, you would have earned a profit of $0.50 for every ounce of silver in your contract.
INDEX FUTURES ROLLOVERS EXPLAINED.
AxiTrader's Index agreements are based on the pertinent futures exchange cost. Because they are associated to a conclusive date, futures agreements expire. There are many months traded and the forward commodity prices can be higher or lower depending on market conditions.
In order to eliminate final day volatility, at AxiTrader we change from using the front month contract into the 2nd month's contract one trading day prior to the exchange expiry.
An example of this is when the australian forex news SPI contract for March expires. The June cost requires to be utilized and the rate on the AxiTrader MT4 platform might increase or decrease depending on the value of the June contract relative to the March contract. This is clearly not a cost increase or fall in the SPI however just a transfer to a brand-new reference rate, therefore no profit or loss will be sustained as a result.
In order to guarantee this does not influence our clients, a cash adjustment has to be made. This is discussed 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 price of 5050 and reopens on the new Ask rate of 5001 if your position is a Buy. Your open trade P&L has made a loss because you are in a Buy and the new market cost has decreased. As a result you will receive a favorable adjustment amount in your swap column equivalent to the difference of the old bid and the new ask.
You will get (5050-5001) * 10 contracts = $490AUD.
Your Position: 10 Sell contracts.
If your position is a Sell, it closes on the old Ask cost of 5051 and reopens on the brand-new Bid price of 5000. Your open trade P&L has made a gain since you are in a Sell and the brand-new market rate has actually reduced. As an outcome you will receive an unfavorable adjustment amount in your swap column equal to the difference of the old ask and the brand-new bid.
You will receive (5051-5000) * 10 agreements = -$ 510AUD.
Accounts will be money adjusted 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 prior to the 3rd Friday of expiry month.
FT100 Future-- Close of business on the day before 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 prior to the 3rd Thursday of expiry month.
OIL ROLLOVER EXPLAINED.
AxiTrader's oil contract (WTI) is based on the ICE futures rate (Front-Spot Month). This futures cost is the largest rate benchmark for the worldwide oil market.
Because they are related to a conclusive date, futures contracts expire. There are many months traded and the forward costs can be higher or lower depending upon market conditions.
In order to get rid of last day volatility, at AxiTrader we change from using 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 this is. The October rate has to be utilized and the price on the AxiTrader MT4 platform might increase or decrease, depending upon the value of the October contract relative to the September contract. This is certainly not a rate rise or fall in oil but just a relocate to a new recommendation cost and therefore no profit or loss will be incurred as an outcome.
In order to guarantee this does not influence our clients, a cash adjustment needs to be made. This is described 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 monetary result is absolutely 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 incurred on employment opportunity.
Net financial result is zero.
The rate of silver is its cost per ounce in USD. The June rate requires to be utilized and the rate 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 reopens on the new Ask rate of 5001. If your position is a Sell, it closes on the old Ask rate of 5051 and reopens on the new Bid rate of 5000. The October rate needs to be used and the cost on the AxiTrader MT4 platform may 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.