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The Foreign Exchange market or the FOREX market is considered the biggest and with most liquid among financial markets in the world. Daily forex trading volume globally is estimated to be over Four trillion USD with over 2.0 trillion in spot market(Ref 1:From: BIS).The Forex market is an over-the-counter market which is different from exchange-traded products because it has no physical location or central exchange.

 

Why Forex Trading?:

 

  • Highly liquid – With such an enormous volume of daily transactions it means any rate- long or short that you intend to trade, there is always someone on the other side  to trade.
  • 24 hrs trading – From the Monday morning opening in Sydney  to the afternoon close in New York , the forex market never sleeps. You can choose to trade in the morning , mid night or even at lunch break- whenever you are comfortable.
  • No one can corner the market – The forex market is so huge and with so many participants that no single player can control the market price.
  • Leverage – Forex trading allow a small deposit to control a much larger total value and give the trader greater exposure both to risks and opportunities.
US Daylight Savings Time
  • Trading Hours: Hong Kong Time 05:15 – 05:00
US Winter Time
  • Trading Hours: Hong Kong Time 06:15 – 06:00

Price limitations

There are no price limitations for Forex products.

Margin calculation

Margin = Index points intended to be earned × Value per index point

Gain and loss calculation

Long position gain and loss = (Closing price – opening price) × Value per index point
Short position gain and loss = (Opening price – closing price) × Value per index point
*The above calculations have excluded spreads.
*T&C can be changed according to market movements. Please refer to our latest announcements or notifications for the most updated information.
Forex

Case 1: Short EUR/USD
The face value of 1 EUR/USD contract is 1,100,000 . The quoted spread is 3 points (the minimum fluctuation is 0.0001).10 per index point. The client intends to earn 500 index points. The margin requirement for each contract is 5,000 .
The client considers the market as highly risky. The market may weaken in the future. To address this situation, the client intends to short EUR/USD .
EUR/USD is quoted at 1.3491/1.3497. The client takes a short position at 1.3497. Value per index point is 10. The client intends to earn 500 index points. This requires a margin of 5,000.
EUR/USD does weaken and drop. The price falls to 1.3491/1.3497. In response, the client chooses to close the position at 1.3497. The client makes a profit of 300 index points in the trade (1.3979-1.3497).
If the client takes a short position at 1.3797 and closes the position at 1.3497. The profit of 300 index points is: (1.3797-1.3497) x 10 = 3,000. The total profit is 3,000.

 

  • Price difference: 0.03(EUR/USD short price 1.3797 – closing price 1.3497 = 0.03)
  • Points earned: +300 (1 base point = 0.0001, then 0.03/0.0001 = 300)
  • Profit earned: RMB+3,000 (Value per index point = 10, then 300 x 10 = 3,000)

*The above calculations have excluded spreads.

 

Case 2: Long EUR/USD
The face value of 1 EUR/USD contract is 1,100,000 . The quoted spread is 3 points (the minimum fluctuation is0.0001).50 per index point. The client intends to earn 500 index points. The margin requirement for each contract is 25,000 .
The client considers the market as highly risky. The market may weaken in the future. To address this situation, the client intends to long EUR/USD .
EUR/USD is quoted at 1.3503/1.3509. The client takes a long position at 1.3509. Value per index point is 50. The client intends to earn 500 index points. This requires a margin of 25,000.
EUR/USD does weaken and drop. The price falls to 1.3809/1.3815. In response, the client chooses to close the position at 1.3809. The client makes a profit of 300 index points in the trade (1.3809-1.3509).
If the client takes a long position at 1.3509 and closes the position at 1. 3809The profit of 300 index points is: (1.3809-1.3509) x 50 = 15,000. The total profit is 15,000.

 

  • Price difference: 0.03(EUR/USD short price 1.3797 – closing price 1.3497 = 0.03)
  • Points earned: +300 (1 base point = 0.0001, then 0.03/0.0001 = 300)
  • Profit earned: RMB+3,000 (Value per index point = 10, then 300 x 10 = 3,000)

*The above calculations have excluded spreads.