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Back in 2007, AxiTrader wased established on a simple concept: to be the broker we ‘d wish to trade with. We’ve because grown to turn into one of Australia’s largest and leading Forex brokers.
Our trading options are sophisticated enough for experienced traders yet basic 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 provide exceptional client support. Our commodity prices and liquidity is sourced from several locations in Forex markets. At AxiTrader, our focus is constantly on integrity, execution and service. We aim more difficult to be the very best– it’s what separates us from our competitors and makes us one of Australia’s largest domestic Forex brokers. Our vision is to keep providing exceptional trading support and end up being the world’s leading service provider of online foreign exchange trading services.
How do we keep our spreads low?
In almost a decade of company, AxiTrader has developed an extensive network of tier one prime brokers and liquidity providers; international banks and financial institutions. Dealing with these trusted sources we have access to a broader pool of liquidity that allows us to retain consistently low spreads and pass them on to our customers.
We provide this best spread commodity prices to our clients through financial investments in technology. With a world-class pricing engine and a worldwide network of servers we’re able to electronically aggregate real-time rates from our liquidity providers and determine the best offered quote and offer.
As a result, our commodity prices will show even the tiniest cost modifications in close to real-time, for every worldwide currency pair, 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 between where you enter a trade and where you exit. Put simply, when the position is closed, you’ll get 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 purchased a contract from AxiTrader that will increase in value if the Gold price increases. For instance, when you trade a CFD you’re speculating on the movement of the cost just, rather than traditional stocks where you buy a physical asset. When integrated with leverage, CFDs offer you quick, 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, instead of buying physical assets
– To make the most of speedy 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 range of various instruments rather than tie it up in a single investment (note: this method can increase risk).
– As a risk management tool to hedge direct exposure.
EXAMPLE GOLD CFD TRADE.
If the gold (XAUUSD) cost is $1600.00, it means an ounce of gold is traded at US$ 1600.00. The rate of silver is its rate per ounce in USD.
If you have actually purchased gold for $1600, you do not have an ounce of gold that you can hold, however you rather have the responsibility to buy XAU at US$ 1600. When you close your position, you offer the XAU and close your direct exposure. If you offer it for $1605.00, you have made profit of $5 for each ounce (device) of gold in your contract. The very same principle applies to silver trading. If you have actually bought silver (XAGUSD) for $28.00 and cost $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 upon the pertinent futures exchange price. Due to the fact that they are associated to a conclusive date, futures agreements expire. There are lots of months traded and the forward commodity prices can be greater or lower depending on market conditions.
In order to remove last day volatility, at AxiTrader we switch 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 requires to be utilized and the cost on the AxiTrader MT4 platform might increase or decrease depending on the value of the June contract relative to the March contract. This is certainly not a rate rise or fall in the SPI but simply a transfer to a new recommendation rate, for that reason no profit or loss will be sustained as a result.
In order to ensure this does not impact our clients, a cash adjustment needs to be made. This is described in the following examples:.
SPI March closes at 5050/5051 and SPI June opens at 5000/5001.
Your Position: 10 Buy agreements.
It closes on the old Bid cost of 5050 and resumes on the brand-new Ask cost of 5001 if your position is a Buy. Your open trade P&L has actually made a loss due to the fact that you are in a Buy and the new market price has decreased. As an outcome you will receive a favorable adjustment quantity in your swap column equivalent to the difference of the old bid and the new ask.
You will get (5050-5001) * 10 contracts = $490AUD.
Your Position: 10 Sell agreements.
If your position is a Sell, it closes on the old Ask price of 5051 and reopens on the brand-new Bid rate of 5000. Your open trade P&L has made a gain because you are in a Sell and the new market price has decreased. As a result you will receive an unfavorable adjustment quantity in your swap column equivalent to the difference of the old ask and the new bid.
You will receive (5051-5000) * 10 agreements = -$ 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 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 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 before the 3rd Thursday of expiry month.
OIL ROLLOVER EXPLAINED.
AxiTrader’s oil contract (WTI) is based on the ICE currency conversion rates futures rate (Front-Spot Month). This futures rate is the largest price standard for the global oil industry.
Futures agreements expire due to the fact that they belong to a conclusive date. There are lots of months traded and the forward rates can be greater or lower depending on market conditions.
In order to eliminate last 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.
An example of this is when the WTI (West Texas Intermediate) contract for September expires. The October cost has to be utilized and the cost on the AxiTrader MT4 platform may decrease or increase, 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 simply a transfer to a new reference rate and therefore no profit or loss will be sustained as a result.
In order to guarantee this does not affect our customers, a cash adjustment requires to be made. This is discussed 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 employment opportunity.
Net monetary 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 sustained on open position.
Net financial effect is absolutely no.
The rate of silver is its rate per ounce in USD. The June price needs to be used and the cost 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 brand-new Ask price of 5001. If your position is a Sell, it closes on the old Ask rate of 5051 and reopens on the brand-new Bid price of 5000. The October rate requires to be used and the price on the AxiTrader MT4 meta trader 4 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. foreign exchange market analysis 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 http://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.