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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 become one of Australia's biggest and leading Forex brokers.
As we're traders too, we understand you want a fantastic 24-hour service, tight spreads and quick execution with very little slippage. That's what we provide. Our trading solutions are sophisticated enough for knowledgeable traders yet easy enough for those with less experience. Whatever your weekend forex trading experience, we've got an option that fits your needs.
We help traders utilizing Forex as an asset class to fulfill part of their trading portfolio. Our trading platform gives you access to the most recent market data and we provide remarkable client assistance. Our pricing and liquidity is sourced from several locations in Forex markets. At AxiTrader, our focus is constantly on service, stability and execution. We strive more difficult to be the best-- it's exactly what separates us from our competition and makes us one of Australia's largest domestic Forex brokers. Our vision is to keep providing remarkable trading assistance and become the world's leading supplier of online forex trading services.
How do we keep our spreads low?
In nearly a decade of business, AxiTrader has established a comprehensive network of tier one prime brokers and liquidity providers; financial institutions and worldwide banks. Dealing with these trusted sources we have access to a wider pool of liquidity that allows us to retain consistently low spreads and pass them on to our clients.
We provide this best spread commodity prices to our clients through investments in innovation. With a world-class prices engine and a worldwide network of servers we're able to electronically aggregate real-time commodity prices from our liquidity providers and determine the very best offered bid and offer.
As a result, our pricing will show even the smallest rate changes in near to real-time, for each global currency set, bringing you as close as possible to institutional-grade pricing.
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 receive the profit or incur the loss on that difference.
If you have 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 price boosts. When you trade a CFD you're hypothesizing on the movement of the cost just, rather than standard stocks where you purchase a physical asset. When combined with leverage, CFDs offer you fast, flexible and economical direct exposure to a host of global financial items.
WHY TRADE CFDS?
- If you're wanting to buy the price movements of instruments, instead of buying physical assets
- To benefit from quick changes in the underlying instrument or security. This is popular with short-term investors planning to make money from intra-day and overnight movements in the market
- To make the most of leverage and spread capital across a variety of different instruments instead of tie it up in a single investment (note: this approach can increase risk).
- As a risk management tool to hedge exposure.
EXAMPLE GOLD CFD TRADE.
The rate of gold is determined by its weight. For that reason, the price demonstrates how much it costs for one ounce of gold in US dollars. If the gold (XAUUSD) price is $1600.00, it means an ounce of gold is traded at US$ 1600.00. Similarly, the rate of silver is its price per ounce in USD. It implies that an ounce of silver is traded at US$ 28.00 if the silver (XAGUSD) rate is 28.00.
If you have actually bought gold for $1600, you do not have an ounce of gold that you can hold, however you rather have the obligation to purchase XAU at US$ 1600. When you close your position, you offer the weekend forex trading XAU and close your direct exposure. You have actually made profit of $5 for every ounce (device) of gold in your contract if you sell it for $1605.00. The exact same principle applies to silver trading. If you have purchased silver (XAGUSD) for $28.00 and sell at $28.50, you would have made 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 relevant futures exchange cost. Since they are related to a conclusive date, futures contracts expire. There are numerous months traded and the forward commodity prices can be greater or lower depending on market conditions.
In order to remove 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 SPI contract for March expires. The June cost has to be used and the rate on the AxiTrader MT4 platform may increase or decrease depending upon the value of the June contract relative to the March contract. This is clearly not a price increase or fall in the SPI but simply a relocate to a brand-new recommendation cost, for that reason no profit or loss will be incurred as a result.
In order to ensure this does not influence 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 price of 5050 and reopens on the new Ask cost of 5001 if your position is a Buy. Since you remain in a Buy and the new market cost has actually decreased, your open trade P&L has actually made a loss. As a result you will receive a positive adjustment quantity in your swap column equivalent to the difference of the old bid and the new ask.
You will get (5050-5001) * 10 agreements = $490AUD.
Your Position: 10 Sell contracts.
If your position is a Sell, it closes on the old Ask rate of 5051 and resumes on the new Bid price of 5000. Because you are in a Sell and the brand-new market rate has actually decreased, your open trade P&L has made a gain. As an outcome you will get a negative adjustment amount in your swap column equal to the difference of the old ask and the new bid.
You will receive (5051-5000) * 10 agreements = -$ 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 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 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 upon the ICE futures cost (Front-Spot Month). This futures rate is the largest price standard for the global oil market.
Futures contracts expire since they belong to a definitive date. There are numerous months traded and the forward commodity prices can be higher or lower depending on market conditions.
In order to remove final day volatility, at AxiTrader we switch from using 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 has to be utilized and the cost on the AxiTrader MT4 platform might increase or decrease, depending upon the value of the October contract relative to the September contract. This is clearly not a rate rise or fall in oil but just a relocate to a new referral rate and therefore no profit or loss will be incurred as a result.
In order to ensure this does not impact our clients, a cash adjustment has to be made. This is discussed 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 employment opportunity.
Net financial impact 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 incurred on open position.
Net financial impact is zero.
The price of silver is its price per ounce in USD. The June cost needs 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 reopens on the 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 price of 5000. The October rate requires to be used and the cost 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.