Trade Forex

Forex

Forex, commonly known as FX or Foreign Exchange is the world’s most widely traded market with an estimated daily turnover exceeding $5.3 Trillion. FX is traded around the clock, 24 hours a day and 5 days a week.

The popularity of forex trading is due to the frequent opportunities that exist from price fluctuations of multiple buyers and sellers in the market. Unlike equities, speculating on currencies is relatively straight forward because prices are generally effected by macroeconomic data.

Unlike most Forex providers, Formax Prime Capital is not a market maker but an ECN provider. As a result, clients can confidently trade with no conflict of interest and spreads will remain low because they come direct from Tier 1 liquidity providers.

Forex trading example 1:

GBP/USD is trading at 1.3010 with a margin rate of 2%

You predict that the price of GBP/USD will rise over the next hour and decide to buy 1 Lot (100,000), to open this trade you will only have to deposit £2,000. Subsequently, your prediction was correct and you sell the trade at 1.3025.

The price has moved 15 points (1.3025 – 1.3010) in your favour.

You profit is (0.0001/1.3010*1*100,000 x 15) = £155.29

Forex trading example 2:

EUR/GBP is trading at 0.8577 with a margin rate of 2%

You predict that the price of EUR/USD will fall over the next hour and decide to sell 1 Lot (100,000), to open this trade you will only have to deposit £2,000. Subsequently, your prediction was incorrect and you buy back the trade at 0.8589

The price has moved 12 points (0.8589 – 0.8577) against your favour.

Your loss is (0.0001*1*100,000 x 12) = -£120.00

Trade Commodities

Commodities

Formax Prime Capital offers its clients the ability to trade popular commodities such as Gold, Silver, Platinum, Oil and Natural gas. Benefit from trading commodities with no expiry date, spreads from 0.5 and leverage of 1:200.

Gold trading example 1:

XAU/USD is trading at 1351.10 with a margin rate of 3%

You decide to buy a 0.1 (Mini) lot of XAU/USD (Gold) due to unstable global markets. The margin required to open this trade will be $40.57. After a period of 30 minutes the price rose to 1352.00 so you decide to keep the trade open.

Open Profit (1352.00 – 1351.10) = $9.00

Oil trading example 2:

Oil is trading at 44.957 with a margin rate of 3%

You decide to sell a 0.5 lots of USO/USD (Oil) but subsequently an announcement of lower production levels has been released on the news and you decide to close the trade at a price of 44.890

Your loss (57 points *0.5) = -$28.50

Trade Indices

Indices

Trading indices gives you an exposure to a group of listed companies within the same exchange. Investors can trade indices for the same intentions as they would with shares but with the additional benefit of a diverse portfolio.

Formax Prime Capital gives you direct access to trade a range of global indices. Investors can benefit from low margin rates of 1% and the ability to place short positions if they believe the market will fall with no extra fees or commissions.

CFD trading example 1:

100GBP is trading at 6950.00 with a margin of 1%

You predict that the price of 100GBP will rise in the next 30 minutes over a news announcement and decide to buy 1 CFD. To open this trade, you will only have to deposit £69,50. Subsequently, your prediction was correct and you sell the trade at 6980.00

The price has moved 30 points (6980.00 – 6950.00) in your favour.

You profit is (1*30) = £30.00

CFD trading example 2:

100GBP is trading at 6960.00 with a margin of 1%

You predict that the price of 100GBP will fall and you decide to short 1 CFD but set a stop loss at 7010.00 for risk management. To open this trade, you will only have to deposit £69,50. Subsequently, the price of the 100GBP rose by 50 points and hit your stop loss.

The price has moved 50 points (6960.00 – 7010.00) against your favour.

Your loss is (1*50) = £50.00

Risk Warning: Forex trading carries a high level of risk to your capital and losses may exceed deposits. You should only speculate with funds that you can afford to lose. Formax do not provide investment advice relating to investments or potential transactions in investments and our products may not be suitable for all investors. Formax is permitted to provide factual market information and information about transaction procedures. Any subsequent decision to enter into any transactions with Formax must be yours. Please ensure that you fully understand the risks involved and seek independent advice if necessary.

Legal:Formax Prime Capital (UK) Limited is authorised and regulated by the Financial Conduct Authority (FCA) in the United Kingdom. Formax Prime Capital (UK) Limited’s reference number is 624225

Registered Office:107 Cheapside, London, EC2V 6DN Registered in England and Wales, Company reference number 08891879.

Copyright © 2017 Formax Prime Capital (UK) Limited. All rights reserved. www.formaxmarket.co.uk is owned and operated by Formax Prime Capital (UK) Ltd.

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