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Forex

The Forex (FX) market is considered to be the largest financial market in the world. AETOS trades FX products. The transaction price is quoted based on the price of the underlying Forex. Traders in the market include banks, corporations, financial institutions, and retail investors. The FX market is also the most liquid market in the world. The average daily turnover in the FX market is US$5.1 trillions (based on the volume in April, 2016, provided by the Bank for International Settlements), and it is continuously growing. It is larger than the combination of stock and futures markets. Market liquidity is rapid so that investors can buy or sell currency immediately without delay.

Forex

Charts

  • Forex
Products Bid Ask High Low
Features
Examples
  • The Forex market is open 24 hours a day, 5 days a week
  • The Forex market is the most liquid in the world
  • Flexible leverage – up to 400:1
  • It is able to trade effectively by taking account of market movements

Example 1 - short EURUSD CFD contract

1 lot EURUSD CFD contract is worth 100,000 euros.

Investors believe that euro is overpriced and will depreciate in the future, so they short EURUSD CFD contract.

When the price of EURUSD CFD is 1.28400/420, investors short 1 lot EURUSD CFD at 1.28400 with a margin of US$1,000.

When the price falls to 1.26380/400, the investors long 1 lot EURUSD CFD at 1.26400 and gain 200 pips (1.28400–1.26400).

As investors long at 1.26400 and short at 1.28400, the profit for every single lot of EURUSD CFD contract is US$2,000 (1.28400 x 100,000-1.26400 x 100,000). Total profit in this example is US$2,000 (2,000 x 1 lot).

Short at 1.28400 then long at 1.26400 200 pips profit
1.28400 x 100,000 - 1.26400 x 100,000 US$2,000 for every single lot
US$2,000 x 1 lot US$2,000 profit

Example 2 - long EURUSD CFD contract

1 lot EURUSD CFD contract is worth 100,000 euros.

Investors believe that euro is underpriced and will appreciate in the future, so they long EURUSD CFD contract.

When the price of EURUSD CFD is 1.33080/100, investors long 1 lot EURUSD CFD at 1.33100 with a margin of US$1,000.

However, the price of EURUSD CFD goes down and when the price falls to 1.31100/120, the investors short 1 lot EURUSD CFD at 1.31100 and lose 200 pips (1.31100–1.33100).

As investors long at 1.33100 and short at 1.31100, the loss for every single lot of EURUSD CFD contract is US$2,000 (1.31100 x 100,000- 1.33100 x 100,000). Total loss in the example is US$2,000 (2,000 x 1 lot).

Long at 1.33100 then short at 1.31100 200 pips loss
1.31100 x 100,000 - 1.33100 x 100,000 US$2,000 for every single lot
US$2,000 x 1 lot US$2,000 loss

News

    AETOS provides a wide range of product support services. If you would like to know more about online Forex trading, please register a demo account now and enjoy the fun of investment in the real market environment or to open a live account to trade in the capital markets.

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