CFD Trading Conditions

With Finotec, you can trade CFDs on 7 major stock indices from 5 different countries (USA, France, Germany, United Kingdom and Israel). To learn about the CFD Trading conditions offered at Finotec – including spreads, trading hours, leverage and margin requirements, minimum and maximum size contract – take a look at the table below.

Leverage

Please note that with Finotec, CFDs on indices may be traded on a 5% margin basis (20:1 leverage). This means that you need only invest 5% of the transaction size as collateral.
* Refers to the minimum/maximum size contract available at Finotec.
** Refers to the cost of 1 pip for a minimum transaction.
*** Time is according to GMT (EST=GMT-5)
CFD (Contract for Difference) is a contract defined as an agreement for the difference between the opening and the closing price of a financial instrument of a traded asset – in this case stock indices. CFDs allow investors to trade stock indices on margin and are a great way to take part in the financial market. With CFDs, short selling stock indices is as easy as buying stock indices.
This type of contract gives you access to real-time price variations and values of world indices without having to actually own them. CFDs are an ideal instrument for hedging as well as for speculating with low margin requirements.

Rollover

On the day of the rollover, the transaction is closed out at a middle rate between the last bid/ask prices and immediately reopened for a new middle rate. This entails that on rollover days, the client pays half of the spread.

Cashing in on Price Movements

Trading Forex is exciting business. The market is always on the move, and every
tiny shift in currency rates can mean profits and losses of hundreds and even
thousands of dollars!
 
Let’s demonstrate how that can happen:
In general, the eight most traded currencies on the Forex market are:
 
USD U.S. Dollar
EUR Euro
GBP British Pound
JPY Japanese Yen
CAD Canadian Dollar
CHF Swiss Franc
NZD New Zealand Dollar
AUD Australian Dollar

Forex trading is always done in pairs, since any trade involves the simultaneous
buying of a currency and selling of another currency. The trading revolves around
18 main currency pairs. These pairs are:

USD/CAD EUR/JPY
EUR/USD EUR/CHF
USD/CHF EUR/GBP
GBP/USD AUD/CAD
NZD/USD GBP/CHF
AUD/USD GBP/JPY
USD/JPY CHF/JPY
EUR/CAD AUD/JPY
EUR/AUD AUD/NZD
 
When buying or selling a currency pair, each pair has its own Bid/Ask rate, for
example:
 
Pair               Bid  Ask
EUR/USD 1.5420 1.5422

Bullionguru.com

Forex Bsic (Update 2)

Intro: Why Forex?


If you are reading this guide, you have most likely taken some sort of interest in
the Forex market. But what does the Forex market have to offer you?
Accessibility – It’s no wonder that the Forex market has the trading
volume of 3 trillion a day ‐ all anyone needs to take part in the action is a
computer with an internet connection.


24 Hour Market ‐ The Forex market is open 24 hours a day, so that you can
be right there trading whenever you hear a financial scoop. No need to
bite your fingernails waiting for the opening bell.


Narrow Focus – Unlike the stock market, a smaller market with tens of
thousands of stocks to choose from, the Forex market revolves around
more or less eight major currencies. A narrow choice means no rooms for
confusion, so even though the market is huge, it’s quite easy to get a clear
picture of what’s happening.


Liquidity ‐ The foreign exchange market is the largest financial market in
the world with a daily turnover of just over $3 trillion! Now apart from
being a really cool statistic, the sheer massive scope of the Forex market is
also one of its biggest advantages. The enormous volume of daily trades
makes it the most liquid market in the world, which basically means that
under normal market conditions you can buy and sell currency as you
please. You can never be in a jam for currency to buy or stuck with
currency that you can’t unload.


The Market Can’t Be Cornered ‐ The colossal size of the Forex market also
makes sure that no one can corner the market. Even banks don’t have
enough pull to really control the market for a long period of time, which
makes it a great place for the little guy to make a move.

Bullionguru.com