Forex Market

Market exchange rates, known as the Forex, or FX, - the largest financial market in the world. Its turnover exceeds $ 1 trillion a day, more than 30 times more than the total of all U.S. stock markets.

«Exchange» implies the simultaneous sale of one currency and buying another. Currencies are usually traded in pairs, for example, the euro / dollar (EUR / USD) or U.S. Dollar / Japanese Yen (USD / JPY).

There are two reasons why the buy and sell currencies. Approximately 5% of daily turnover on the Forex market accounts for companies and government agencies who buy or sell goods and services in a foreign country or must convert profits earned in other countries, the national currency. The remaining 95% of turnover - it is a transaction for profit, also called speculation.

The greatest interest for speculators are the most common (most liquid) currencies, ie «Core». To date, over 85% of all transactions constitute transactions in major currencies, which include the U.S. Dollar, Japanese Yen, Euro, British pound, Swiss franc, Canadian and Australian dollar.

Trading on the Forex market round-the-clock starts every day in Sydney, then moves around the globe, along with a light day and the beginning of the major financial centers - first to Tokyo, then London and New York. Unlike other financial markets, the Forex market traders have the opportunity to play on the price fluctuations caused by economic, social and political events, at any time of day and night.

Forex is considered to be over, or «interbank» market, due to the fact that each transaction is concluded between the parties by telephone or using electronic networks. Forex Trading is decentralized, and is not subject to restrictions on exchanges, as happens in the stock or futures markets.

Forex Quotes

At first glance, reading the currency market quotes may seem difficult, but everything comes into place when you remember two basic rules: 1) the first pair - this is base currency, and 2) the value of the base currency is always equal to 1.

U.S. Dollar - the central currency market Forex, and so is the base for many quotations. For the major currency pairs is to be USD / JPY, USD / CHF and USD / CAD. The data, along with many other quotes are defined as the price of one U.S. dollar (USD) in units of the second currency in the pair. For example, the quotation of USD / JPY 120,01 means that one U.S. dollar is equal to 120.01 Japanese yen.

When the U.S. dollar is the base currency, the quotation is growing, with an increase in the value of the dollar in relative terms, and the cost of the second currency - falls. If the quotation already mentioned pair USD / JPY rises to, say, to 123.01, the dollar will become stronger because of it you can now buy more yen.

There are three exceptions to this rule - the British pound (GBP), Australian dollar (AUD) and Euros (EUR). In the case of such currencies, everything is done with an accuracy up to the opposite: quotation 1,4366 GBP / USD means that one British pound equals 1.4366 U.S. dollars.

In these three pairs, where the dollar is not the base currency, the increase in quotes means weakening the dollar, since the purchase of one unit of the base currency, whether it be the pound, euro or Australian dollar, would require more U.S. dollars.

In other words, the increase in quotes means strengthening the base currency, and vice versa - reducing quotes indicates a weakening base currency.

Couples in which there is no U.S. dollar are called cross-currency quotes, but the principle will not change. For example, in quotation EUR / JPY 127,95, one Euro is equal to 127.95 Japanese yen.



In the Forex market you will often see the double quotes, consisting of a double price - buying and selling. The first - the price at which you can buy the base currency (while selling a second currency) and the second - the sale price of the base currency (and buying the second currency).

First Steps

The first step on the arduous path of becoming a successful trader must become an introduction to the structure of forex market, its main strengths and weaknesses, an understanding of its pitfalls, acquaintance with the methods of analyzing and forecasting the market, the study of the principles of the market, develop their own trading strategy.

A brief excursion into the international market Forex, as well as a description of work, methods of analysis and prediction can be found on our website under "About the Forex market. Unfortunately, the information you find on our site, only a small proportion of what we are able to select from all the information that exists today. However, this information will help you make the first steps. In the process of learning and development of the trader, you will receive much information as you want or not - but in any case, you will learn to provide for themselves the most important and necessary.

The second step in the Forex market should be to use the acquired knowledge into practice - trading strategies - the study and use of trading platform, receptions Production / withdrawal of warrants, the opening / closing positions, modification of orders, ability to see and draw trends, levels of resistance and support, the ability to enjoy levels of Fibo and importantly - practice and correction of your trading strategy.

At this stage it is necessary to practice in the virtual school bill. Training Account will enable you to develop your skills without any financial risk with maximum efficiency, because to make any money or pay for use of the school account is not required. Detailed information about opening an account the school is located on our website in the "demo account".

Step Three, when, after studying the work on the school run, get positive, and even dizzy result, many acquiring a false self-confidence, go to the real market and fail. Therefore, you will have first priority - actually receive a stable positive results. Will be crucial here - the knowledge, ability to work on its trading system, a clear adherence to rules, the iron logic, psychological stability, a lack of respect for the system of greed and money management.

In order to help new traders to address this challenge, our company developed two special types of accounts - MINILIte and MIDILite.

Account type MINILite allows beginner trader to start work on a real Forex market with real money, but the gains and losses on this account will be minimal. Stable income is unlikely to be able to cover the cost of Internet service providers.

Low initial deposit, which will lose a pain for any trader, will allow you to overcome the difficult stage of transition from the school accounts for a real account.

Due to the fact that all the Lite group accounts from being LiteForex cents, a trader learns to interact with large amounts of the number of zeros so that it works with the same amount, but in dollars, which will help to avoid further psychological pressures at work on the larger accounts .

The same type of account MINILite can be used by traders operating at the stage of testing of different mechanical trading systems.

Account type MIDILite - this is the next step beginner trader. While working on this account, the trader will learn to carry out its plan for profitability, limited to relatively minor amount of risk.

After three stages - from the school accounts to the account MIDILIte, you can make a withdrawal - whether you are ready to work successfully in the Forex market or not, and, finally, to choose for themselves by "professional" category - MAXILite, either in MEGALite Depending on your financial capabilities and interests.

Spread Betting Bonds - Futures

As the debt instrument market government bonds constitute one of the most active trading of financial futures instruments in the world.

Among the most popular bonds offered by GFT Global Markets, U.S. Treasury securities (US Treasury Bonds) and UK Gilts - major trading government bonds with a limited spread and competitive profits from GFT Global Markets.

CONTRACT SPECIFICATION Spread Betting Bonds - Futures


Coefficient of movement = price markup on the price, which represents 1 single operating unit, which is calculated on the basis of the balance of profit and loss (P & L), the original and the variational margin. For nevalyutnyh CFD Notional value of your transaction = Base Price * Number of CFD / ratio price movements.

Minimum / maximum size of the transaction

The maximum size varies depending on the base of liquidity, market conditions and the classified whether core market by GFT Global Markets as the market for non-working time ", ie outside of normal trading hours.

Reports on the market indicate the usual minimum and maximum dimensions in GBP (British Pounds); currency equivalents apply in relation to the accounts are not in GBP or in relation to trade in markets, where the main currency is not GBP.

Restrictions in relation to the maximum size applicable at the opening, and at the close of the transaction.

Minimum number of CFD (or "size") for the markets to GFT Global Markets is 100 for individual securities and 1 CFD for all other markets. For your information as an example of the minimum size of market transactions specified lot size of a framework market.

Trading with CFD is always with the "base" currency market base. That is, if you sell the U.S. action, trading is conducted in U.S. dollars at one per cent of the price movement.

Trading Hours

These hours - normal hours, that GFT Global Markets trading in the market may change, such as during holidays and in case of switching to "summer time".

Unless otherwise stated by the hours listed on London time.

Normal working hours - from 22.00 Sunday to 22.00 Friday.

Spreads

These spreads strife, depending on the liquidity of the market base, they also differ on the "fast market".

Spreads, these goods can be added to the market spread of basic market.

Spread Betting Commodities - Futures

Take advantage of price fluctuations on the most popular commercial markets, including markets for metals, energy and consumer goods. The low margin requirements and narrow spreads allowed to enter these markets without any additional fees.

CONTRACT SPECIFICATION Spread Betting Commodities - Futures


Coefficient of movement = price markup on the price, which represents 1 single operating unit, which is calculated on the basis of the balance of profit and loss (P & L), the original and the variational margin. For nevalyutnyh CFD Notional value of your transaction = Base Price * Number of CFD / ratio price movements.

Minimum / maximum size of the transaction

The maximum size varies depending on the base of liquidity, market conditions and the classified whether core market by GFT Global Markets as the market for non-working time ", ie outside of normal trading hours.

Reports on the market indicate the usual minimum and maximum dimensions in GBP (British Pounds); currency equivalents apply in relation to the accounts are not in GBP or in relation to trade in markets, where the main currency is not GBP.

Restrictions in relation to the maximum size applicable at the opening, and at the close of the transaction.

Minimum number of CFD (or "size") for the markets to GFT Global Markets is 100 for individual securities and 1 CFD for all other markets. For your information as an example of the minimum size of market transactions specified lot size of a framework market.

Trading with CFD is always with the "base" currency market base. That is, if you sell the U.S. action, trading is conducted in U.S. dollars at one per cent of the price movement.

Trading Hours

These hours - normal hours, that GFT Global Markets trading in the market may change, such as during holidays and in case of switching to "summer time".

Unless otherwise stated by the hours listed on London time.

Normal working hours - from 22.00 Sunday to 22.00 Friday.

Spreads

These spreads strife, depending on the liquidity of the market base, they also differ on the "fast market".

Spreads, these goods can be added to the market spread of basic market.

Financial corrections

The financial adjustment is carried out in the open positions at 01.00 or after 01.00 Moscow time. The following are examples of transfer rates. In view of futures markets CFD financial adjustments are not implemented.

As long as you hold the position of the night (ie, after 01:00 Moscow time.) Originate corrections to your account. The adjustments are calculated as follows:

f = (s x p x r) / d

where

f = daily fee funding

s = Your bid

p = the closing price determined GFT Global Markets

r = the appropriate rate proposals LIBOR, plus 300 basis points for long positions, or MINUS 300 basis points for short positions

d = number of days, ie 365 for the Index of Great Britain and Australia and 360 for all others

Long trading positions (Long) be debited for the amount of daily fees for funding

Short trading positions (Short) for credit in the amount of daily fees for funding

Spread Betting Stock Indices

With GFT Global Markets you have the opportunity to trade stock indexes at a lower cost. We offer indexes more than 20 countries, narrow spreads, low levels of initial margin, a number of non-stop markets and guaranteed stop-orders on all the proposed indices.

Index CFD allows to acquire a wide range of shares by one order, that is, you can conclude the transaction, taking into account the trends of the market, rather than any individual company.

CONTRACT SPECIFICATION Spread Betting Stock Indices

Rollover

For one-day rate of spread of transferable stock exchange index (ie, after 22:00 London time) charged + / - 3%, I have to pay for financing. The calculation is performed as follows:

f = (s x p x r) / d

where

f = daily fee funding

s = Your bid

p = the closing price determined GFT Global Markets

r = the appropriate rate proposals LIBOR, plus 300 basis points for long positions, or MINUS 300 basis points for short positions

d = number of days, ie 365 for the Index of Great Britain and Australia and 360 for all others

Long trading positions (Long) be debited for the amount of daily fees for funding

Short trading positions (Short) for credit in the amount of daily fees for funding

Coefficient of movement = price markup on the price, which represents 1 single operating unit, which is calculated on the basis of the balance of profit and loss (P & L), the original and the variational margin. Notional value of your transaction = Base Price * Proportion / ratio price movements.

Markets in a time

GFT Global Markets will lead the quotations of some markets outside of the normal trading hours. ( "outside time"). In the non-working hours may be the expansion of these spreads and the reduction of the maximal size of transactions. If an order is started after hours, and its size exceeds the maximum size of deals, some for hours of non-price performance of the order can be adjusted accordingly in order to accommodate the order entirely, except when the order is guaranteed by the order of stop loss. Spreads non hours listed in the table.

Our quotes "non-time based on changes in other indices available, but are not limited to:

- Changes in other financial markets, such as spot forex markets;
- On incoming information;
- The flow of orders to customers.
Market Out of Hours Times
UK 100

Germany 30

France 40

US Wall Street 30

US SPX 500

US Tech 100

Australia 200

Japan 225 21:00 - 08:00 London time

22:00 - 08:00 CET

22:00 - 08:00 CET

16:00 - 18:15 Chicago time

16:30 - 17:00 Chicago time

16:30 - 17:00 Chicago time

16:30 - 09:50 Sydney time

04:30 - 07:45 Singapore time

Estimated prices of futures markets

Calculations of rates for the futures Wall Street, NASDAQ 100, S & P 500, S & P / MIB and S & P / ASX performed on the basis of «special opening quotation», published by the relevant Exchange on the day of expiry of the futures contract. Also note that the estimated price can vary greatly in the extent to which the subject of bid or closure of the index produced the previous day.

The last day, which may be bidding on the markets Wall Street, NASDAQ 100, S & P 500 and S & P / MIB - the day preceding the day of the calculation of the estimated price.

FTSE 100 Futures: Futures settlement price for the FTSE 100 is calculated by FTSE International, taking into account the intraday auction (usually from 10:10 to 10:15) on the London Stock Exchange on the last day of reference for bidding.

CAC 40 Futures: Settlement price is the closing of the last business day in the form of mean values (rounded to the tenth), CAC 40 index values, calculated and distributed in the interval between 15.40 and 16.00 (including the first index value, distributed after 16.00).

Futures DAX 30: calculated on the basis of the value index, based on the prices of trades on Xetra ® share of the composite index. Intraday auction starting at 13:00 average time on the last day of reference for bidding.

Futures Eurostoxx 50: calculated on the basis of the average of index values, calculated as the interval between 1:50 and 12:00 average time on the last day of reference for bidding.

Futures IBEX 35: calculated on the basis of average market value of cash flow from 16:15 to 16:45 CET the average time on the last day of reference for bidding.
Nikkei 225 futures are calculated on the basis of Quotations Special Nikkei 225 Index based on opening prices of each part of the release, expressed as an index Nikkei 225 in the working day following the last day of reference for bidding.

Futures Hang Seng: The final settlement price shall be a number, rounded up to the first of a value price determined by Clearing House and should be the average of quotations Index Hang Seng, which are values every five minutes on the last day of reference for bidding.

Dividends

Below are the adjustments for CFD transactions with cash:

Buyers of credit to (the number of items, which was adjusted corresponding index x size).

Dealers charged by (the number of items, which was adjusted corresponding index x size).

Minimum / maximum size of the transaction

The maximum size varies depending on the base of liquidity, market conditions and the classified whether core market by GFT Global Markets as a «market for non-working time», ie outside of normal trading hours.

Reports on the market indicate the usual minimum and maximum dimensions in GBP (British Pounds); currency equivalents apply in relation to the accounts are not in GBP.
Restrictions in relation to the maximum size applicable at the opening, and at the close of the transaction.

The minimum percentage of working with GFT Global Markets is £ 1 (pound) (or equivalent currency). The size of the lot to the base exchange is the background and gives an idea of the minimum amount of stock transactions.

Trading Hours

These hours - normal hours, that GFT Global Markets trading in the market may change, such as during holidays and in case of switching to "summer time".

Normal working hours - from 22.00 Sunday to 22.00 Friday.

Spreads

These spreads strife, depending on the liquidity of the market base, they also differ on the "fast market".

Dividends on stock indexes

When an individual stock, a component of the money stock, pay dividends, it will have a balanced effect on the index of cash, known as «dividend index» or «influence index». GFT will adjust such accounts with the position of using the index, if the position remains open at the close of the principal cash market transactions on the day preceding the date of payment of dividend on shares of a compound.

GFT will lend to long positions and short positions debit (through cash adjustments):

Dividend index size of the position x

Weighted effect separate dividend shares will be calculated as follows:

The dividend index = Dividend per share x (Shares in index / index divider)

«Divisor index» varies depending on the indices. This value, adjusted basic rate for the repayment of the effect of fluctuations resulting, inter alia, as a result of the fragmentation of the shares, bonus issue of shares and replacing the stock components. This ensures comparability of the value index in dinamke time. GFT uses a variety of data sources to calculate the dividend index.

Index DAX 40 is not subject to adjustment, is the index of aggregate income, so all dividends paid out are reflected in the price.

The futures index is not to suffer such effects as the price of the expected dividends on the Futures already listed.

The real cost: GFT defines its cash rate indices based on the conditions of the futures markets. As a result, we include in the rate adjustment «true value» to reflect the cash price index derivative as compared to the price of the futures. The real value - is constantly changing variable, it changes during the trading day in accordance with the calculations of the current real value of GFT.

GFT will adjust the calculation of the internal real value at the close of the market cash transactions on the day preceding the payment of dividends on shares of a compound, it will reflect the dividend index.