1. HOW DOES FOREIGN EXCHANGE TRADING WORK?

Size: px
Start display at page:

Download "1. HOW DOES FOREIGN EXCHANGE TRADING WORK?"

Transcription

1 XV. Important additional information on forex transactions / risks associated with foreign exchange transactions (also in the context of forward exchange transactions) The following information is given in addition to the general risks associated with forward transactions. Please read the following information attentively. Foreign exchange and Foreign spot transactions are associated with a high risk of loss. Before getting involved as market participants on the international foreign exchange markets, you should read the following information attentively, in particular the risk information stated in item 6 of this section. The term "FOREX is made up of the contractions for (= foreign) and ex (= exchange). FOREX trading or FX trading describes the international foreign exchange trading, that is the purchase and sale of currencies. 1. HOW DOES FOREIGN EXCHANGE TRADING WORK? Foreign exchange trading is based on a worldwide decentralised trading system (no fixed stock exchange, but OTC (over the counter) trading) which can be accessed directly by all participants. However, there is no fixed market place or stock market, therefore the market for foreign exchange trading is called an OTC market (over the counter). This trading system is called interbank FX market; the trading between the market participants is called interbank trading. The heart of this system is the interbank matching system that determines current rates during trading times (market making). Private foreign exchange traders are directly connected to the worldwide trading system through a foreign exchange broker and thus benefit from all advantages offered by this system. The most important benefit is a fully automated trading system providing all services from price determination to the execution of the trade. Manipulations are virtually impossible. In second place, a transparent real-time price system is available. The broker trades at the rate that he / she sees like the other market participants and executes the trade completely within fractions of a second. The foreign exchange market is one of the biggest and most liquid markets in the world. Trading takes place 24 hours a day, 5 days a week. Basically, we distinguish between spot exchange transactions and forward exchange transactions (forward exchange contracts). As the following explanations will illustrate in more detail, the value date of spot transactions normally is two working days after conclusion. Forward exchange transactions are valued at a particular date in the future agreed by contract and at a rate agreed in advance. Foreign exchange can be purchased at a current rate with immediate delivery and settlement on the spot market. The determination of the rate is based on supply and demand of those market participants who need foreign exchange with immediate delivery. This determination of price is called rate on the spot market. The exchange rates on the spot market are highly sensitive to economic changes. They are the basis of the international cash flows since foreign exchange transactions can be settled only within a few minutes. Spot markets are the most liquid foreign exchange markets. New buy and sell orders continuously influence the rates. 2. DEFINITION OF EXCHANGE RATE The exchange rate always refers to two currencies and describes their exchange ratio. The currency that is rated is called base currency. It is the currency stated first in the pair of currencies. The currency that expresses the rate is called quoted currency. The rate expressed by the quoted currency refers to a unit of the base currency. The exchange rate for the pair of currencies EUR/USD shows the value of one euro in US dollars, so it expresses the quantity of the quoted currency that is required for exchanging into or from the base currency. When a broker states a quotation for the sale of EUR/USD, he / she will be selling euros and buying US dollars. Therefore, he / she is exchanging euros into US dollars. When selecting the base currency for any pair of main currencies, the market adheres to an established hierarchy. For example, for a trade involving US and Australian dollars, the market will quote AUD/USD. For exchanges between Australian dollars and British pounds, the market will quote GBP/AUD. The euro is used as base currency in any pair of currencies. 3. HANDLING OF SPOT EXCHANGE AND FORWARD EXCHANGE TRANSACTIONS As a general rule, spot exchange transactions are fulfilled by the mutual physical delivery of currency amounts. However, in practice, it may also be fulfilled by offsetting against a concluded opposite transaction. 60

2 The relevant exchange rates in spot transactions are defined by the bid price and the ask price. In international foreign exchange trading, he bid price is the price at which the customer can sell a base currency, while the ask price is the price at which the customer can buy a base currency. The difference between bid price and ask price is called market difference (spread). On the spot market, the exchange rate is agreed at the trading date; the actual transaction is then carried out as quickly as possible. The standard time for immediate settlement is two business days after the trading day (d+2). This date is called value date or spot date. USD/CAD transactions are the only exception and are settled within a business day (d+1). This procedure reduces the settlement risk and allows time for doing the formalities such as confirmations of transactions including the payment orders of the two parties. If such a spot transaction has not been settled on the second business day (2 days after the trading day), interest will be charged to the party in default. The development of Intraday (real-time gross settlement RTGS) in the 1990s, i.e. possibility to settle purchase and sell within a day, made it possible to settle transactions as of today (d+0) and over night as of tomorrow (d+1). As already explained above, spot exchange transactions are generally fulfilled by paying a corresponding currency amount. The contracting party may request the customer to deposit a security ( margin ) for covering the risk of non-performance. The margin covers a corresponding amount of the customer s traded currency volume. In general, the amount of the margin payment depends on the development of the exchange rates. A forward exchange contract is a transaction to exchange currencies, i.e. the purchase or sale of a certain currency on a future date at a rate agreed today. This rate is called forward rate. Banks will provide forward exchange quotes for most of the tradable currencies. Forward value dates are calculated out of spot value dates, which are in turn calculated out of the transaction date. As already mentioned, the spot date is two business days after the transaction date. So for a 1-month forward contract concluded on Wednesday, 11 August 2004, the spot value date will be Friday, 13 August, and the forward value date will be Monday, 13 September. The term of forward exchange contracts is between 3 days and approximately 2 years. Both types of contracts show the expected development of the future foreign exchange rates by means of the positions held. 4. SPECULATION AND HEDGING USING CURRENCY FUTURES CONTRACTS Forward exchange contracts are mainly used for hedging open positions and for speculating. Pure speculators express a specific opinion regarding the expected development of the exchange rates by means of currency futures contracts. Futures traded on a stock exchange often present a very large leverage effect. Standard contracts (price, volume, maturity) create liquidity which allows speculators to trade contracts before their expiry date. The limited number of available currency pairs as well as the standard volume and the limited settlement dates are factors that contribute to the liquidity of futures contracts. 5. OTC FORWARD EXCHANGE TRADING OTC forward exchange trading is the preferred instrument to hedge currency risks or to speculate. We distinguish between four main categories: 5.1 Hedging of opposite positions Risk-averse hedge customers with underlying foreign exchange transactions. They wish to hedge the future value of a fixed income. If, for example, a UK corporation receives an amount in euro in 30 days, the value of the euro compared to the GBP can be fixed today by concluding a forward exchange contract with a bank to sell euro for GBP in 30 days at an agreed fixed rate. 5.2 Hedging of future income Portfolio managers use forward exchange contracts for hedging the risk of exchange rate movements. They wish to secure the value of an investment or of future investment returns (e.g. interest coupon payments for fixed-interest securities denominated in a foreign currency). 5.3 Liquidity management Banks use forward exchange contracts mainly for liquidity management. They combine a forward exchange transaction with a spot exchange transaction to create a two-leg transaction, the so-called foreign exchange swap. 61

3 5.4 Speculation Portfolio managers take positions with the sole objective of making a favourable independent transaction. This transaction is not based on any positions to be hedged. They only aim at making use of (probable) opportunities. 6. RISKS IN FOREIGN EXCHANGE TRADING This risk information cannot cover all possible risks associated with foreign exchange trading. The following information refers to the typical risks associated with foreign exchange trading. On account of the associated risks, trading in foreign exchanges requires special knowledge, abilities and experience and therefore is not suitable for many investors. This is why you would consider very carefully whether trading in foreign exchange is a suitable type of investment for you in view of your experience, investment goals, financial possibilities and other investment-related personal circumstances. If you are not sure as to this necessary assessment, you should ask your legal, economic or other adviser for help. The following information is given in addition to the general information on risks associated with forward transactions. You will find further information on risks there as well. Therefore, please read those documents thoroughly before trading! 6.1 Risks based on extreme price fluctuations As illustrated above, the foreign exchange market is the most liquid financial market in the world. Today, the extremely short reaction times and the large number of market operations sometimes result in large price fluctuations on a single day that were possible in the past over rather large periods of time only. It is this fact that, on the one hand, makes the forex trade interesting, but, on the other hand, also is responsible for its extraordinarily high risk. 6.2 Risks resulting from margin transactions - leverage effect It is true that the handling of a foreign exchange transaction based on the provision of a margin reduces the capital employed so that a relatively large trading volume can be achieved by employing a relatively small amount of capital, but the risk of loss increases as well. This correlation is called leverage effect. The leverage effect results in the fact that even small price fluctuations may have a strong effect on the capital employed by you. This may result in the loss of your entire capital employed. Example: You have an available margin amounting to 20,000 USD on your trading account and buy 100,000 EUR. In case of a current EUR/USD rate of this transaction has an equivalent value of 125,000 USD that you have to pay. However, you only have to make a security deposit, the so-called margin for this transaction. The margin amounts to a fraction of the value of the concluded transaction only, in this example it is 10% of the value of the transaction, i.e. 12,500.- USD. The investment condition in the form of the fixed margin that is relatively low compared to the overall value of the transaction creates a leverage effect: In the example above, this leverage amounts to 1:10. The deposited margin amounts to a tenth of the traded volume of 125,000 USD. If the EUR/USD rate falls from to (minus 4% = 0.05 USD), this will result in a loss of 5,000 USD (125,000 USD had to be paid for 100,000 EUR, but now you will only get back 120,000 USD for 100,000 EUR). The loss for the overall account increases to 25% on account of the leverage used. After deducting the trading loss of 5,000 USD, only 15,000 USD remain of the margin of 20,000 USD initially paid in. This leverage effect results in the fact that already small variations in the rate of the currency pair have large effects on the account capital. (In the example, a change in the exchange rate by 4 per cent resulted in a loss of 25% (5,000 USD) in the trading account). This may cause to the total loss of the capital paid in as margin. Example: A fixed margin of 12,500 USD is deducted from the available margin of 20,000 USD for purchasing 100,000 EUR. The available margin now amounts to 7,500 USD. If the EUR/USD rate falls from to (minus 12% = 0.15 USD), this will result in a loss of 15,000 USD (125,000 had to be paid for 100,000 EUR, but now you will only get back 110,000 USD for 100,000 EUR). The available margin of 7,500 USD would not be enough to settle this loss. In this case, the bank would call for a further margin (capital) for balancing the account and initiate the forced closing of the transaction, unless not already carried out by a trading system on account of its risk management criteria. In case of closing of the transaction, the deposited margin can be used to settle the losses. In this case, the payment of a further margin would not be necessary. 5,000 USD would remain as new freely available capital for other transactions. The larger the leverage is in a spot transaction, the higher is the risk of loss in case of small market fluctuations. Supposing that the fixed margin is 10% of the trading volume, that is 12,500 USD, in the example above. This results in a leverage of 1:10 since a change in the EUR/USD exchange rate by 10 per cent results in a loss of 12,500 USD). You have to realise that, when concluding a transaction, a portion of your capital paid in (available margin) will be fixed as margin as soon as you open positions in the FOREX market. Losses sustained in the context of transactions may exceed the remaining capital by far and use up the fixed margin. You can lose your entire paid-up capital (total loss). If losses result in the fact that your entire margin no longer is enough for the open transactions, you will have to provide a further margin for restoring a balanced account. The time limit fixed for that may be extremely short. If you fail to provide the 62

4 required capital within the fixed time limit, the open transactions will be closed by the bank. Most of the electronic trading systems are already fully developed to automatically liquidate the customer's open positions at defined limits of loss or if certain risk management criteria are met. 6.3 Currency and price risk Profits and losses arising from foreign exchange transactions occur for buyer and seller like a mirror image. The seller of a foreign exchange transaction undertakes to deliver the foreign exchange at a future exchange rate. The exchange rate at the date of execution might be significantly higher than the rate at the date of conclusion. If, in this case, the seller does not own the foreign exchange to be delivered, the seller might, under certain circumstances, be obliged to conclude a closing transaction. The seller s risk arises from the price difference. This risk of loss cannot be determined in advance and can account for your entire paid-up capital. For example, this is the case when the seller does not own the foreign exchange, but has to procure it at maturity only. In this case, significant losses might result as the seller might be required to buy at a clearly higher rate, depending on the market situation. If the seller is unable to procure the foreign exchange, he /she will have to make corresponding settlement payments. The same will apply to the buyer of a foreign exchange transaction, if the exchange rate at the execution date is lower than the rate at the date of conclusion. It depends on the customer s respective contracting partner or on the agreement entered into with that person to what extent he / she will close out transactions of the customer prematurely by concluding an opposite transaction of by settlement in case of losses. These risks cannot be excluded by means of careful analyses of rates either. Please read that information. When trading currencies on the spot market / interbank market, the exchange of currencies will take place immediately. In this case, an exchange of two currencies takes place immediately upon the conclusion of the transaction at the current market rate. 6.4 Risk of counterparty default The risk of counterparty default (also called credit risk or counterparty risk ) is the risk that a contracting party does not meet their obligations and is in default. This results in a financial damage to the other contracting party since they have to conclude replacement transactions at unfavourable prices. Reasons for the default of a counterparty include the credit standing of the business partner or country risks at the partner s place of business. Such a counterparty default may occur at any time and does not depend on market activity. A participant may be in default, for example, when he / she becomes insolvable, files for insolvency / bankruptcy or a moratorium is introduced. The potential loss resulting from the default of a counterparty amounts to the expenses incurred for the replacement through the substitute transaction. Therefore, the risk of counterparty default is also called replacement risk or substitution risk. The risk that the counterparty does not meet their obligations and thus a loss is sustained carries particular weight in foreign exchange transactions. The execution of foreign exchange transactions generally takes place at different places. This is why, when placing their payment orders, no party can be sure that the other party meets their obligations under the contract. This (time zone) risk is particularly high when, due to time zone differences between the two places of payment, one of the parties is obliged to make a payment before the other party does. 6.5 Ineffectiveness of risk limitations It might happen that transactions to exclude or limit risks associated with concluded transactions (closing transactions) cannot be concluded at all or at a losing market price only. These transactions include limit or stop order or combined if-then limit or stop orders. The application of limit or stop orders (orders to limit trading profits or trading losses in case of certain market fluctuations by automatically initiating the closing of a transactions) cannot always limit losses to the defined amounts. It is possible that, on account of a certain market situation, the orders cannot be executed timely, not at the fixed price or not at all, which may result in the total loss of your margin capital as well as further losses exceeding the latter. In particular in very volatile market phases, unforeseeable price changes may result in the fact that the closing of the position falls under the defined risk limit. This may result in the fact that a rather large loss or even a total loss is sustained. Thus, the risk limitation intended by these orders may completely fail and a total loss or even larger losses may occur. 6.6 Risks associated with online trading 63

5 Further risks may result from characteristic features of online trading, in particular, orders of any kind, also stop limit orders and / or stop loss orders may be transmitted or executed only in part, not at all or not timely on account of system errors, system failures, transmission errors, other errors of hardware or software or the interruption of the connection. These errors and failures may result in losses up to total loss of the entire margin capital paid in. 6.7 Other risks Additional risks might result if the conclusion and / or execution of foreign exchange transactions are subject to a low other than German law. This might result in the fact that the assertion and enforcement of claims arising from the conclusion and / or execution of foreign exchange transactions is associated with actual or legal difficulties. Risks might also result from the absence of regulatory regulations or the presence of inadequate regulatory regulations. Additional risks might result if the contracting party speaks another language when concluding and / or executing foreign exchange transactions. This might result in communication difficulties or translation errors. 6.8 Risk associated with day trading Same-day foreign exchange transactions in the same currency pair might result in immediate losses. Contracting parties might lose their entire capital. In case of day trading transactions with borrowed funds, customers will always be obliged to repay the credit irrespective of their success in day trading. When attempting to make profits in day trading, the customer will also compete with professional and well-financed market participants. Day trading requires the customer s in-depth knowledge with respect to exchange markets, exchange trading methods and strategies. 64

XIV. Additional risk information on forward transactions in CFDs

XIV. Additional risk information on forward transactions in CFDs XIV. Additional risk information on forward transactions in CFDs The following information is given in addition to the general risks associated with forward transactions. Please read the following information

More information

CommSeC CFDS: IntroDuCtIon to FX

CommSeC CFDS: IntroDuCtIon to FX CommSec CFDs: Introduction to FX Important Information This brochure has been prepared without taking account of the objectives, financial and taxation situation or needs of any particular individual.

More information

1 Introduction. 1.5 Margin and Variable Margin Feature

1 Introduction. 1.5 Margin and Variable Margin Feature Risk Disclosure Spread Betting and CFDs are high risk investments. Your capital is at risk. Spread Betting and CFDs are not suitable for all investors and you should ensure that you understand the risks

More information

Product Disclosure Statement

Product Disclosure Statement Product Disclosure Statement Sumo Forex Limited Level 4, 228 Queen Street, Auckland, 1010, New Zealand Tel: +6498871044 Email: support@sumoforex.com 1. Important Information and Disclaimer 1.1 Financial

More information

1 Introduction. 1.5 Leverage and Variable Multiplier Feature

1 Introduction. 1.5 Leverage and Variable Multiplier Feature Risk Disclosure BUX is a trading name of ayondo markets Limited. ayondo markets Limited is a company registered in England and Wales under register number 03148972. ayondo markets Limited is authorised

More information

NEW TO FOREX? FOREIGN EXCHANGE RATE SYSTEMS There are basically two types of exchange rate systems:

NEW TO FOREX? FOREIGN EXCHANGE RATE SYSTEMS There are basically two types of exchange rate systems: NEW TO FOREX? WHAT IS FOREIGN EXCHANGE Foreign Exchange (FX or Forex) is one of the largest and most liquid financial markets in the world. According to the authoritative Triennial Central Bank Survey

More information

CM-Equity AG. General Information and Risk Disclosure for Foreign Exchange (Forex) Transactions ( General Information and Risk Disclosure )

CM-Equity AG. General Information and Risk Disclosure for Foreign Exchange (Forex) Transactions ( General Information and Risk Disclosure ) CM-Equity AG General Information and Risk Disclosure for Foreign Exchange (Forex) Transactions ( General Information and Risk Disclosure ) Contents I. General Informations regarding Foreign Exchange (Forex)...

More information

General Risk Disclosure

General Risk Disclosure General Risk Disclosure Colmex Pro Ltd (hereinafter called the Company ) is an Investment Firm regulated by the Cyprus Securities and Exchange Commission (license number 123/10). This notice is provided

More information

The foreign exchange market is global, and it is conducted over-the-counter (OTC)

The foreign exchange market is global, and it is conducted over-the-counter (OTC) FOREIGN EXCHANGE BASICS TERMS USED IN FOREX TRADING: The foreign exchange market is global, and it is conducted over-the-counter (OTC) through the use of electronic trading platforms, or by telephone through

More information

MARGIN FOREIGN EXCHANGE AND FOREIGN EXCHANGE OPTIONS

MARGIN FOREIGN EXCHANGE AND FOREIGN EXCHANGE OPTIONS CLIENT SERVICE AGREEMENT Halifax New Zealand Limited Client Service Agreement Product Disclosure Statement for MARGIN FOREIGN EXCHANGE AND FOREIGN EXCHANGE OPTIONS Halifax New Zealand Limited Financial

More information

Getting Started With Forex Trading: A Forex Primer. Member NASD, NYSE, SIPC, and NFA

Getting Started With Forex Trading: A Forex Primer. Member NASD, NYSE, SIPC, and NFA Getting Started With Forex Trading: A Forex Primer Member NASD, NYSE, SIPC, and NFA 1 Important Information and Disclaimer: TradeStation Securities, Inc. seeks to serve institutional and active traders.

More information

MARGIN FOREIGN EXCHANGE

MARGIN FOREIGN EXCHANGE PRODUCT DISCLOSURE STATEMENT MARGIN FOREIGN EXCHANGE Halifax Investment Services Limited Australian Financial Services Licence No. 225973 Date 20th October 2014 HALIFAX Product Disclosure Statement 1 IMPORTANT

More information

The purpose of this ebook is to introduce newcomers to the forex marketplace and CMTRADING. Remember that trading in forex is inherently risky, and

The purpose of this ebook is to introduce newcomers to the forex marketplace and CMTRADING. Remember that trading in forex is inherently risky, and The purpose of this ebook is to introduce newcomers to the forex marketplace and CMTRADING. Remember that trading in forex is inherently risky, and you can lose money as well as make money. Manage your

More information

FOREIGN EXCHANGE PRODUCT DISCLOSURE STATEMENT INTERACTIVE BROKERS LLC ARBN 091 191 141 AFSL 245 574

FOREIGN EXCHANGE PRODUCT DISCLOSURE STATEMENT INTERACTIVE BROKERS LLC ARBN 091 191 141 AFSL 245 574 FOREIGN EXCHANGE PRODUCT DISCLOSURE STATEMENT INTERACTIVE BROKERS LLC ARBN 091 191 141 AFSL 245 574 Date of Issue: 19 February 2014 INDEX 1. GENERAL INTRODUCTION 4 1.1 Important Information 4 1.2 Purpose

More information

Section 1 Important Information... 2. Section 2 Regulatory Guide 227... 2. Section 3 Features... 3. Section 4 How to Trade... 8

Section 1 Important Information... 2. Section 2 Regulatory Guide 227... 2. Section 3 Features... 3. Section 4 How to Trade... 8 CONTENTS Section 1 Important Information... 2 Section 2 Regulatory Guide 227... 2 Section 3 Features... 3 Section 4 How to Trade... 8 Section 5 Significant Risks... 32 Section 6 Costs, Fees & Charges...

More information

The World s Elite Trading School. The Trusted Source for Online Investing and Day Trading Education Since 1994. What is a Forex?

The World s Elite Trading School. The Trusted Source for Online Investing and Day Trading Education Since 1994. What is a Forex? What is a Forex? Forex is the market where one currency is traded for another Unlike stocks and futures exchange, foreign exchange is indeed an interbank, over-the-counter (OTC) market which means there

More information

CURRENCY TRADER. Currency Trading. Introduction to currency futures. What are currency futures?

CURRENCY TRADER. Currency Trading. Introduction to currency futures. What are currency futures? Introduction to currency futures The South African Rand is one of the most volatile currencies in the world; it can exhibit moves of greater than 0.20c in a single day of trading versus the US dollar.

More information

Currency Derivatives Guide

Currency Derivatives Guide Currency Derivatives Guide What are Futures? In finance, a futures contract (futures) is a standardised contract between two parties to buy or sell a specified asset of standardised quantity and quality

More information

PRODUCT DISCLOSURE STATEMENT FOR MARGIN FX & CONTRACTS FOR DIFFERENCE

PRODUCT DISCLOSURE STATEMENT FOR MARGIN FX & CONTRACTS FOR DIFFERENCE PRODUCT DISCLOSURE STATEMENT FOR MARGIN FX & CONTRACTS FOR DIFFERENCE This document provides important information about Margined Foreign Exchange and Contracts for Difference contracts to help you decide

More information

RISK DISCLOSURE STATEMENT FOR FOREX TRADING AND IB MULTI- CURRENCY ACCOUNTS

RISK DISCLOSURE STATEMENT FOR FOREX TRADING AND IB MULTI- CURRENCY ACCOUNTS RISK DISCLOSURE STATEMENT FOR FOREX TRADING AND IB MULTI- CURRENCY ACCOUNTS Rules of the U.S. National Futures Association ("NFA") require Interactive Brokers ("IB") to provide you with the following Risk

More information

Currency Futures trade on the JSE s Currency Derivatives Trading Platform

Currency Futures trade on the JSE s Currency Derivatives Trading Platform Currency Futures trade on the JSE s Currency Derivatives Trading Platform DERIVATIVE MARKET Currency Derivatives Currency Futures www.jse.co.za Johannesburg Stock Exchange Currency Futures & Options trade

More information

MONEY MARKET FUTURES. FINANCE TRAINER International Money Market Futures / Page 1 of 22

MONEY MARKET FUTURES. FINANCE TRAINER International Money Market Futures / Page 1 of 22 MONEY MARKET FUTURES 1. Conventions and Contract Specifications... 3 2. Main Markets of Money Market Futures... 7 3. Exchange and Clearing House... 8 4. The Margin System... 9 5. Comparison: Money Market

More information

RISK DISCLOSURE STATEMENT PRODUCT INFORMATION

RISK DISCLOSURE STATEMENT PRODUCT INFORMATION This statement sets out the risks in trading certain products between Newedge Group ( NEWEDGE ) and the client (the Client ). The Client should note that other risks will apply when trading in emerging

More information

Risk Warning Notice for Contracts for Difference ( CFDs ) and Spot Foreign Exchange ( Forex )

Risk Warning Notice for Contracts for Difference ( CFDs ) and Spot Foreign Exchange ( Forex ) Risk Warning Notice for Contracts for Difference ( CFDs ) and Spot Foreign Exchange ( Forex ) 1. INTRODUCTION 1.1. TradingForex.com is a domain owned and operated by TTCM Traders Trust Capital Markets

More information

Trading the E-Micro Currency Futures Contracts

Trading the E-Micro Currency Futures Contracts August 2011 NEW OPPORTUNITIES Trading the E-Micro Currency Futures Contracts Currency traders now have the ability to trade in a regulated and Exchange-listed Forex-Futures market via Forex E-micro futures.

More information

RISK DISCLOSURE STATEMENT

RISK DISCLOSURE STATEMENT RISK DISCLOSURE STATEMENT You should note that there are significant risks inherent in investing in certain financial instruments and in certain markets. Investment in derivatives, futures, options and

More information

Margin FX and CFDs Product Disclosure Statement 26 April 2016

Margin FX and CFDs Product Disclosure Statement 26 April 2016 Margin FX and CFDs 26 April 2016 Issuer: Forex Capital Trading Pty Ltd AFSL No. 306400 and ABN 69 119 086 270 1 P a g e 1. Important Information 1.1 About this PDS This PDS is issued by Forex Capital Trading

More information

Evolution of Forex the Active Trader s Market

Evolution of Forex the Active Trader s Market Evolution of Forex the Active Trader s Market The practice of trading currencies online has increased threefold from 2002 to 2005, and the growth curve is expected to continue. Forex, an abbreviation for

More information

Risk Disclosure. Introduction. through Stofs.com falls under the CySEC licence.

Risk Disclosure. Introduction. through Stofs.com falls under the CySEC licence. Risk Disclosure Introduction AFX Capital and SuperTradingOnline (STO) are trading names of AFX Capital Markets Ltd. and AFX Markets Ltd. AFX Capital Markets Ltd. is authorised and regulated by the Cyprus

More information

PRODUCT DISCLOSURE STATEMENT FOR THE ISSUE OF ASX CFDs BY MORRISON SECURITIES PTY LIMITED

PRODUCT DISCLOSURE STATEMENT FOR THE ISSUE OF ASX CFDs BY MORRISON SECURITIES PTY LIMITED PRODUCT DISCLOSURE STATEMENT FOR THE ISSUE OF ASX CFDs BY MORRISON SECURITIES PTY LIMITED PART 1 This document is part of a Product Disclosure Statement and is Part 1. The other document which makes up

More information

FX Options NASDAQ OMX

FX Options NASDAQ OMX FX Options OPTIONS DISCLOSURE For the sake of simplicity, the examples that follow do not take into consideration commissions and other transaction fees, tax considerations, or margin requirements, which

More information

INTRODUCTION TO FOREIGN EXCHANGE

INTRODUCTION TO FOREIGN EXCHANGE INTRODUCTION TO FOREIGN EXCHANGE Capademy Tutorial Series Option Banque Training Series Vol. 1 The foreign exchange market known as forex for short is the market in which currencies or sovereign money

More information

RISK DISCLOSURE STATEMENT

RISK DISCLOSURE STATEMENT Sensus Capital Markets Ltd. Block 10, Flat1, Triq Ghar il-lembi. Sliema, Malta Phone: +356 277 811 20 Fax: +356 277 811 21 Email: info@sensus-capital.com RISK DISCLOSURE STATEMENT Risk Disclosure Statement

More information

Risk Disclosure Statement for CFDs on Securities, Indices and Futures

Risk Disclosure Statement for CFDs on Securities, Indices and Futures Risk Disclosure on Securities, Indices and Futures RISK DISCLOSURE STATEMENT FOR CFDS ON SECURITIES, INDICES AND FUTURES This disclosure statement discusses the characteristics and risks of contracts for

More information

PROFITEERING IN THE GLOBAL FOREX MARKET. -Presentation by R.K.Gurumurthy -Treasurer, Bank One Ltd

PROFITEERING IN THE GLOBAL FOREX MARKET. -Presentation by R.K.Gurumurthy -Treasurer, Bank One Ltd PROFITEERING IN THE GLOBAL FOREX MARKET -Presentation by R.K.Gurumurthy -Treasurer, Bank One Ltd The story of a successful trader 2 The story of a successful trader trader 3 The story of a successful trader

More information

MICHAEL HODGES AND BRETT COOPER

MICHAEL HODGES AND BRETT COOPER WHY COPY TRADE FOREX MICHAEL HODGES AND BRETT COOPER WHAT IS FOREX COPY TRADING Forex copy trading is a relatively new way of trading currency. It takes a lot of the risk and hassle out of trading and

More information

PRODUCT DISCLOSURE STATEMENT

PRODUCT DISCLOSURE STATEMENT PRODUCT DISCLOSURE STATEMENT EIGHTCAP PTY LTD ABN 73 139 495 944 AFSL 391441 Suite 1913, Level 19, 180 Lonsdale Street, Melbourne, VIC 3000, Australia Phone: 03 8373 4800 Fax: 03 9623 2201 Email: customerservice@eightcap.com

More information

Product Disclosure Statement

Product Disclosure Statement Product Disclosure Statement Margin Foreign Exchange & CFD Trading TF Global Markets (Aust) Pty Ltd ACN 158 361 561 Address: Level 11 636 St. Kilda Road, Melbourne, VIC, Australia 3004 Website: www.thinkforex.com

More information

Futures Contract Introduction

Futures Contract Introduction Futures Contract Introduction 1 The first futures exchange market was the Dojima Rice exchange in Japan in the 1730s, to meet the needs of samurai who being paid in rice and after a series of bad harvests

More information

An introduction to the foreign exchange market Moorad Choudhry September 2002

An introduction to the foreign exchange market Moorad Choudhry September 2002 An introduction to the foreign exchange market Moorad Choudhry September 2002 The market in foreign exchange is an excellent example of a liquid, transparent and immediate global financial market. Rates

More information

Chapter 16: Financial Risk Management

Chapter 16: Financial Risk Management Chapter 16: Financial Risk Management Introduction Overview of Financial Risk Management in Treasury Interest Rate Risk Foreign Exchange (FX) Risk Commodity Price Risk Managing Financial Risk The Benefits

More information

Advanced forms of currency swaps

Advanced forms of currency swaps Advanced forms of currency swaps Basis swaps Basis swaps involve swapping one floating index rate for another. Banks may need to use basis swaps to arrange a currency swap for the customers. Example A

More information

Margin FX and CFDs Product Disclosure Statement 26 June 2015

Margin FX and CFDs Product Disclosure Statement 26 June 2015 Margin FX and CFDs 26 June 2015 Issuer: Forex Capital Trading Pty Ltd AFSL No. 306400 and ABN 69 119 086 270 1 P a g e 1. Important Information 1.1 About this PDS This PDS is issued by Forex Capital Trading

More information

Combined Product Disclosure Statement Financial Services Guide for MahiFX Margin FX Trading

Combined Product Disclosure Statement Financial Services Guide for MahiFX Margin FX Trading Combined Product Disclosure Statement Financial Services Guide for MahiFX Margin FX Trading MahiFX Limited ARBN: 152 535 085 AFSL: 414198 Date: 28 August 2013 Version: 3.1 1. About this combined Product

More information

TOPFX. General Questions: FAQ. 1. Is TOPFX regulated?

TOPFX. General Questions: FAQ. 1. Is TOPFX regulated? General Questions: 1. Is TOPFX regulated? TOPFX has been a regulated broker since April 2011, when it was granted a license by the Cyprus Securities and Exchange Commission (http://www.cysec.gov.cy/en-

More information

Introduction to Equity Derivatives on Nasdaq Dubai NOT TO BE DISTRIUTED TO THIRD PARTIES WITHOUT NASDAQ DUBAI S WRITTEN CONSENT

Introduction to Equity Derivatives on Nasdaq Dubai NOT TO BE DISTRIUTED TO THIRD PARTIES WITHOUT NASDAQ DUBAI S WRITTEN CONSENT Introduction to Equity Derivatives on Nasdaq Dubai NOT TO BE DISTRIUTED TO THIRD PARTIES WITHOUT NASDAQ DUBAI S WRITTEN CONSENT CONTENTS An Exchange with Credentials (Page 3) Introduction to Derivatives»

More information

Online Share Trading Currency Futures

Online Share Trading Currency Futures Online Share Trading Currency Futures Wealth warning: Trading Currency Futures can offer significant returns BUT also subject you to significant losses if the market moves against your position. You may,

More information

Currency Options. www.m-x.ca

Currency Options. www.m-x.ca Currency Options www.m-x.ca Table of Contents Introduction...3 How currencies are quoted in the spot market...4 How currency options work...6 Underlying currency...6 Trading unit...6 Option premiums...6

More information

1. WHY WE NEED FOREIGN EXCHANGE 2. WHAT FOREIGN EXCHANGE MEANS 3. ROLE OF THE EXCHANGE RATE. 9 The Foreign Exchange Market in the United States

1. WHY WE NEED FOREIGN EXCHANGE 2. WHAT FOREIGN EXCHANGE MEANS 3. ROLE OF THE EXCHANGE RATE. 9 The Foreign Exchange Market in the United States CHAPTER 2 1. WHY WE NEED FOREIGN EXCHANGE Almost every nation has its own national currency or monetary unit its dollar, its peso, its rupee used for making and receiving payments within its own borders.

More information

What is Forex Trading?

What is Forex Trading? What is Forex Trading? Foreign exchange, commonly known as Forex or FX, is the exchange of one currency for another at an agreed exchange price on the over-the-counter (OTC) market. Forex is the world

More information

Risks involved with futures trading

Risks involved with futures trading Appendix 1: Risks involved with futures trading Before executing any futures transaction, the client should obtain information on the risks involved. Note in particular the risks summarized in the following

More information

Risk Disclosure Notice

Risk Disclosure Notice Risk Disclosure Notice RISK WARNING: Contracts for Difference ( CFDs ) are complex financial products, most of which have no set maturity date. Therefore, a CFD position matures on the date you choose

More information

INFORMATION ON RISKS IN SECURITIES TRADING

INFORMATION ON RISKS IN SECURITIES TRADING INFORMATION ON RISKS IN SECURITIES TRADING Introduction This notice does not disclose all of the risks and other significant aspects of trading in financial instruments. In light of the risks, Investor

More information

Foreign Exchange Market INTERNATIONAL FINANCE. Function and Structure of FX Market. Market Characteristics. Market Attributes. Trading in Markets

Foreign Exchange Market INTERNATIONAL FINANCE. Function and Structure of FX Market. Market Characteristics. Market Attributes. Trading in Markets Foreign Exchange Market INTERNATIONAL FINANCE Chapter 5 Encompasses: Conversion of purchasing power across currencies Bank deposits of foreign currency Credit denominated in foreign currency Foreign trade

More information

OPTIONS EDUCATION GLOBAL

OPTIONS EDUCATION GLOBAL OPTIONS EDUCATION GLOBAL TABLE OF CONTENTS Introduction What are FX Options? Trading 101 ITM, ATM and OTM Options Trading Strategies Glossary Contact Information 3 5 6 8 9 10 16 HIGH RISK WARNING: Before

More information

TRADING RULES ONLINE FX AND PRECIOUS METAL Effective August 10, 2015

TRADING RULES ONLINE FX AND PRECIOUS METAL Effective August 10, 2015 TRADING RULES ONLINE FX AND PRECIOUS METAL Effective August 10, 2015 PRODUCTS Contract Size EUR/USD EUR 100,000 USD/JPY USD 100,000 GBP/USD GBP 100,000 USD/CHF USD 100,000 AUD/USD AUD 100,000 NZD/USD NZD

More information

26 th November, 2014. IC Markets CFDs and FOREX (etoro) PRODUCT DISCLOSURE STATEMENT

26 th November, 2014. IC Markets CFDs and FOREX (etoro) PRODUCT DISCLOSURE STATEMENT IC Markets CFDs and FOREX (etoro) PRODUCT DISCLOSURE STATEMENT International Capital Markets Pty Limited ABN 12 123 289 109 Australian Financial Services Licence No. 335 692 26 th November, 2014 International

More information

General Forex Glossary

General Forex Glossary General Forex Glossary A ADR American Depository Receipt Arbitrage The simultaneous buying and selling of a security at two different prices in two different markets, with the aim of creating profits without

More information

Online Share Trading Currency Futures

Online Share Trading Currency Futures Online Share Trading Currency Futures pic Currency Futures Introduction Currency futures contracts can be hard-working additions to any investor s or trader s portfolio. They provide a way to hedge the

More information

Module 10 Foreign Exchange Contracts: Swaps and Options

Module 10 Foreign Exchange Contracts: Swaps and Options Module 10 Foreign Exchange Contracts: Swaps and Options Developed by: Dr. Prabina Rajib Associate Professor (Finance & Accounts) Vinod Gupta School of Management IIT Kharagpur, 721 302 Email: prabina@vgsom.iitkgp.ernet.in

More information

Risk Warning Notice. Introduction

Risk Warning Notice. Introduction First Equity Limited Salisbury House London Wall London EC2M 5QQ Tel 020 7374 2212 Fax 020 7374 2336 www.firstequity.ltd.uk Risk Warning Notice Introduction You should not invest in any investment product

More information

RISK DISCLOSURE. Version: 1.0. Date: April. 2014

RISK DISCLOSURE. Version: 1.0. Date: April. 2014 RISK DISCLOSURE Version: 1.0 Date: April. 2014 RISK DISCLOSURE. (, we, us, our ) is authorised and regulated by the New Zealand Financial Service Providers (NZFSP) under licence number 119/10 and registration

More information

The Market for Foreign Exchange

The Market for Foreign Exchange The Market for Foreign Exchange Chapter Objective: 5 Chapter Five This chapter introduces the institutional framework within which exchange rates are determined. It lays the foundation for much of the

More information

ASX CFDS PRODUCT DISCLOSURE STATEMENT

ASX CFDS PRODUCT DISCLOSURE STATEMENT ASX CFDS PRODUCT DISCLOSURE STATEMENT YOU ARE WHAT YOU DO Important notes and disclaimers Issued by Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 ( CommSec ) Locked Bag 34 Australia Square

More information

Module 1 Introduction to CFDs

Module 1 Introduction to CFDs Module 1 Introduction to CFDs Course #: Title Topic 1: Why use CFDs?... 3 Introduction... 3 Leveraged exposure... 3 Trade rising or falling markets... 3 Protect a physical position... 4 Pairs trading...

More information

Risk Explanation for Exchange-Traded Derivatives

Risk Explanation for Exchange-Traded Derivatives Risk Explanation for Exchange-Traded Derivatives The below risk explanation is provided pursuant to Hong Kong regulatory requirements relating to trading in exchange-traded derivatives by those of our

More information

Sensus Capital Markets Ltd. Block 10, Flat 1 Ghar il- Lembi Sliema, Malta Phone: +356 277 811 20 Fax: +356 277 811 21 Email: info@sensus-capital.

Sensus Capital Markets Ltd. Block 10, Flat 1 Ghar il- Lembi Sliema, Malta Phone: +356 277 811 20 Fax: +356 277 811 21 Email: info@sensus-capital. Sensus Capital Markets Ltd. Block 10, Flat 1 Ghar il- Lembi Sliema, Malta Phone: +356 277 811 20 Fax: +356 277 811 21 Email: info@sensus-capital.com TRADING RULES Sensus Trading Rules / release 1.6. /

More information

A guide to managing foreign exchange risk

A guide to managing foreign exchange risk A guide to managing foreign exchange risk CPA Australia Ltd ( CPA Australia ) is one of the world s largest accounting bodies with more than 122,000 members of the financial, accounting and business profession

More information

CONTRACTS FOR DIFFERENCE

CONTRACTS FOR DIFFERENCE PRODUCT DISCLOSURE STATEMENT CONTRACTS FOR DIFFERENCE Halifax Investment Services Limited Australian Financial Services Licence No. 225973 Date 20th October 2014 HALIFAX Product Disclosure Statement 1

More information

SuperTradingOnline Risk Disclosure. Version: 3.0 Date: May 2015 STO Cyprus

SuperTradingOnline Risk Disclosure. Version: 3.0 Date: May 2015 STO Cyprus SuperTradingOnline Risk Disclosure Version: 3.0 Date: May 2015 STO Cyprus RISK DISCLOSURE AFX Capital Markets Ltd. ( AFX, we, us, our ) trading as SuperTradingOnline (STO) is authorised and regulated by

More information

Forex TG Pty Ltd PRODUCT DISCLOSURE STATEMENT MARGIN FOREIGN EXCHANGE AND CONTRACTS FOR DIFFERENCE. Page 1

Forex TG Pty Ltd PRODUCT DISCLOSURE STATEMENT MARGIN FOREIGN EXCHANGE AND CONTRACTS FOR DIFFERENCE. Page 1 Forex TG Pty Ltd PRODUCT DISCLOSURE STATEMENT MARGIN FOREIGN EXCHANGE AND CONTRACTS FOR DIFFERENCE Page 1 MARGIN FOREIGN EXCHANGE AND CONTRACTS FOR DIFFERENCES PRODUCT DISCLOSURE STATEMENT Please note:

More information

Introduction to Forex Trading

Introduction to Forex Trading Introduction to Forex Trading The Leader in Rule-Based Trading 1 Important Information and Disclaimer: TradeStation Securities, Inc. seeks to serve institutional and active traders. Please be advised that

More information

Foreign Exchange and Drafts Transactions. Product Disclosure Statement

Foreign Exchange and Drafts Transactions. Product Disclosure Statement Foreign Exchange and Drafts Transactions Product Disclosure Statement FOREIGN EXCHANGE & DRAFT TRANSACTIONS PRODUCT DISCLOSURE STATEMENT Issue Date: 29 June 2015 TABLE OF CONTENTS 1. PURPOSE 2. IMPORTANT

More information

Foreign Exchange Risk Management

Foreign Exchange Risk Management Foreign Exchange Risk Management Perry D. Mehta Federal Reserve Bank of Richmond, Charlotte Office perry.mehta@rich.frb.org Seminar for Senior Bank Supervisors from Emerging Economies Washington, DC October,

More information

ANZ ETFS PHYSICAL US DOLLAR ETF. (ASX Code: ZUSD)

ANZ ETFS PHYSICAL US DOLLAR ETF. (ASX Code: ZUSD) ANZ ETFS PHYSICAL US DOLLAR ETF (ASX Code: ZUSD) INVESTMENT BUILDING BLOCKS FOR A CHANGING WORLD Introducing a suite of innovative exchange traded funds (ETFs) designed for Australian investors by ANZ

More information

Plus500AU Pty Ltd. Product Disclosure Statement

Plus500AU Pty Ltd. Product Disclosure Statement Plus500AU Pty Ltd Product Disclosure Statement Product Disclosure Statement Our Contact Details Issuer: PLUS500AU Pty Ltd ACN 153 301 681 Address: Level 19, 1 O Connell Street Sydney NSW 2000 Australia

More information

INTEREST RATE SWAP (IRS)

INTEREST RATE SWAP (IRS) INTEREST RATE SWAP (IRS) 1. Interest Rate Swap (IRS)... 4 1.1 Terminology... 4 1.2 Application... 11 1.3 EONIA Swap... 19 1.4 Pricing and Mark to Market Revaluation of IRS... 22 2. Cross Currency Swap...

More information

Business Foreign Exchange Contracts

Business Foreign Exchange Contracts Business Foreign Exchange Contracts Product Disclosure Statement 1 August 2012 Copyright HSBC Bank Australia Limited ABN 48 006 434 162. 1 August 2012. ALL RIGHTS RESERVED. No part of this publication

More information

FOREIGN EXCHANGE CONTRACTS

FOREIGN EXCHANGE CONTRACTS Product Disclosure Statement 14th July 2003 This Product Disclosure Statement is an important document. We are providing this information to ensure that you receive key information about our foreign exchange

More information

Product Disclosure Statement

Product Disclosure Statement Foreign Exchange Product Disclosure Statement 26 March 2013 Happy Banking Important Notice This Product Disclosure Statement (PDS) is provided by Bankwest, a division of Commonwealth Bank of Australia

More information

Client Acknowledgement. Risk Warning Notice for CFDs

Client Acknowledgement. Risk Warning Notice for CFDs Please read this document fully. IMPORTANT NOTICE Client Acknowledgement Clients (including account applicants) of CMC Markets Singapore Pte. Ltd. ( CMC Markets ) should be aware of the risks involved

More information

Complex Products. Non-Complex Products. General risks of trading

Complex Products. Non-Complex Products. General risks of trading We offer a wide range of investments, each with their own risks and rewards. The following information provides you with a general description of the nature and risks of the investments that you can trade

More information

TRADING RULES. TRADING RULES (release 1.0/12.08.2015) 2

TRADING RULES. TRADING RULES (release 1.0/12.08.2015) 2 Sensus Capital c/o GBE Safepay Transactions Ltd. 171, Arch. Makariou III Avenue, 4th floor, Office N & O, 3027, Limassol, Cyprus Phone: +357 250 201 09 Fax: +357 250 288 79 Email: info@sensus-capital.com

More information

Plus500AU Pty Ltd. Product Disclosure Statement

Plus500AU Pty Ltd. Product Disclosure Statement Plus500AU Pty Ltd Product Disclosure Statement Product Disclosure Statement Our Contact Details Issuer: PLUS500AU Pty Ltd ACN 153 301 681 Address: Level 2, 19-21 Hunter Street Sydney NSW 2000 Australia

More information

PRODUCT DISCLOSURE STATEMENT

PRODUCT DISCLOSURE STATEMENT PRODUCT DISCLOSURE STATEMENT 1 JULY 2014 HIGHLOW MARKETS PTY LTD ACN: 143 553 628 +61 (0) 2 9186 9162 Level 14, Macquarie House, 167 Macquarie Street, Sydney, NSW 2000, Australia Copyright. Audax Legal

More information

FOREX FOR BEGINNERS. www.mundomarkets.com

FOREX FOR BEGINNERS. www.mundomarkets.com FOREX FOR BEGINNERS CONTENT 01. 02. 03. 04. What is forex market and how it works? Forex market (page 2) Liquidity providers (page 3) Why acquiring knowledge is important in the forex market? Experience

More information

Important matters for Securities CFD

Important matters for Securities CFD Provisional Translation for Reference Purpose Only Risk Disclosure for Securities CFD Transaction (This document is given by Interactive Brokers Securities Japan, Inc. in accordance with the regulation

More information

MARGIN FOREIGN EXCHANGE & CONTRACTS FOR DIFFERENCE PRODUCT DISCLOSURE STATEMENT. AxiCorp Financial Services Pty Ltd ACN 127 606 348 AFSL 318232

MARGIN FOREIGN EXCHANGE & CONTRACTS FOR DIFFERENCE PRODUCT DISCLOSURE STATEMENT. AxiCorp Financial Services Pty Ltd ACN 127 606 348 AFSL 318232 MARGIN FOREIGN EXCHANGE & CONTRACTS FOR DIFFERENCE PRODUCT DISCLOSURE STATEMENT AxiCorp Financial Services Pty Ltd ACN 127 606 348 AFSL 318232 CONTENTS 1. IMPORTANT INFORMATION... 3 2. APPLYING TO TRADE

More information

Forex Basics brought to you by MatrasPlatform.com

Forex Basics brought to you by MatrasPlatform.com Forex Basics brought to you by MatrasPlatform.com Table of Content What is FOREX... 3 FOREX Basics... 4 Trading Hours... 4 What Is Traded on FOREX?... 4 The Six Majors... 4 Currency Pair Distribution...

More information

Introduction to Forex Trading

Introduction to Forex Trading Introduction to Forex Trading The Leader in Rule-Based Trading 1 Important Information and Disclaimer: TradeStation Securities, Inc. seeks to serve institutional and active traders. Please be advised that

More information

CONTRACTS FOR DIFFERENCE

CONTRACTS FOR DIFFERENCE CLIENT SERVICE AGREEMENT Halifax New Zealand Limited Client Service Agreement Product Disclosure Statement for CONTRACTS FOR DIFFERENCE Halifax New Zealand Limited Financial Services Provider No. 146605

More information

CMC Markets NZ Limited. Next Generation Platform Risk Warning Notice. 31 May 2015. CMC Markets NZ Limited Risk Warning Notice 1

CMC Markets NZ Limited. Next Generation Platform Risk Warning Notice. 31 May 2015. CMC Markets NZ Limited Risk Warning Notice 1 CMC Markets NZ Limited Next Generation Platform Risk Warning Notice 31 May 2015 CMC Markets NZ Limited Risk Warning Notice 1 Significant risks of trading CFDs This document sets the major risks that can

More information

Product Disclosure Statement

Product Disclosure Statement www.pepperstone.com Product Disclosure Statement Level 5, 530 Collins Street Local Call 1300 033 375 Melbourne VIC Phone +61 3 9020 0155 3000 AUSTRALIA Fax +61 3 8679 4408 Risk Warning : Trading Forex

More information

KE Forex Product Term Sheet

KE Forex Product Term Sheet KE Forex Product Term Sheet ** Please note that Page 1-5 is for your reference, and only Page 7 is required to be completed and returned. What is leveraged trading in Forex (Foreign Exchange) Contracts?

More information

Trading forex is buying one currency while at the same time selling a different currency.

Trading forex is buying one currency while at the same time selling a different currency. F O R E I G N E X C H A N G E B A S I C S T E R M S U S E D I N F O R E X T R A D I N G The foreign exchange market is global, and it is conducted over-the-counter (OTC) through the use of electronic trading

More information

PRODUCT DISCLOSURE STATEMENT MARGIN FOREIGN EXCHANGE. Issued 16 November 2015 by FOREX FINANCIAL SERVICES PTY LTD ABN 84129217812 AFSL 323193

PRODUCT DISCLOSURE STATEMENT MARGIN FOREIGN EXCHANGE. Issued 16 November 2015 by FOREX FINANCIAL SERVICES PTY LTD ABN 84129217812 AFSL 323193 PRODUCT DISCLOSURE STATEMENT MARGIN FOREIGN EXCHANGE Issued 16 November 2015 by FOREX FINANCIAL SERVICES PTY LTD ABN 84129217812 AFSL 323193 1 IMPORTANT NOTE Financial Services are provided by, and this

More information

Reading: Chapter 19. 7. Swaps

Reading: Chapter 19. 7. Swaps Reading: Chapter 19 Chap. 19. Commodities and Financial Futures 1. The mechanics of investing in futures 2. Leverage 3. Hedging 4. The selection of commodity futures contracts 5. The pricing of futures

More information

RISK DISCLOSURE STATEMENT FOR SECURITY FUTURES CONTRACTS

RISK DISCLOSURE STATEMENT FOR SECURITY FUTURES CONTRACTS RISK DISCLOSURE STATEMENT FOR SECURITY FUTURES CONTRACTS This disclosure statement discusses the characteristics and risks of standardized security futures contracts traded on regulated U.S. exchanges.

More information

PRODUCT DISCLOSURE STATEMENT

PRODUCT DISCLOSURE STATEMENT PRODUCT DISCLOSURE STATEMENT TABLE OF CONTENTS PRODUCT DISCLOSURE STATEMENT 1. INTRODUCTION 3 1.1 BACKGROUND 3 1.2 OUR CONTACT DETAILS 3 1.3 TRADING HOURS 3 1.4 OFFICE HOURS 3 1.5 ANTI MONEY LAUNDERING

More information

MT4 Trading Manual. Effective date: 13 October 2015

MT4 Trading Manual. Effective date: 13 October 2015 MT4 Trading Manual Effective date: 13 October 2015 LMAX MT4 Trading Manual Effective date: 13 October 2015 This Trading Manual ( the Manual ) provides further information and worked examples on our trading

More information