Online Forex (Fx) Trading - Overview

Online Forex (Fx) TradingReymount Investment performs clearing and trade settlement services to all its clients on major currency pairs and precious metals. Accessing global markets with our superior online trading software – Reymount Net Trader, developed using modern internet technologies enables our clients to receive instantaneous quotes and fills on their orders. Considered as one of the largest and highly volatile market of the world, the forex market is participated by a multitude of investor's base which includes small individuals, banks, clearing houses, institutional clients, speculators, corporate houses, money mangers and hedge fund managers. The frequent fluctuations in currency prices facilitated investors to speculate and trade on them. Without any discrimination, the forex market offers potential income earning systems to its entire community of investor's beginning right from small individual traders to high-net worth individuals.

TRADING HOURS

The forex market can be broadly classified into spot and futures market. Among them the spot market is regarded as the fastest and most flexible market for short-term trades. Reymount specializes in spot currency trading with spread rates of 5 to 8 pips on major currency pairs. Working round-the-clock, the spot market opens its business doors each day in New Zealand by 0:00 GMT traversing through the Asian continent, then to Middle East, London and finally closing in New York by 22:00 GMT. These unique features have provided investors to get the best prices available for their deals at any time from any part of the globe. Accessing the online trading system, clients can access the market floors at any time and frame their quotes. Reymount Investment performs forex trade advisory and execution service to all its clients 24 hours a day on all major currency pairs.

CURRENCY CONVENTION

If you are trading in forex market you can find that the prices of currencies are expressed in terms of pairs as in the stock market. The first currency is called the ‘base currency' and the second is called the ‘quote currency'. The pair displays the current exchange rates of the currencies know as the quotes. This quote includes a 'Bid' and 'Ask' price. Bid is the price at which the investor is willing to buy the base currency and Ask is the price at which the investor is willing to sell the base currency.

For example in USD/JPY 113.70/113.75 - the base currency is the U.S dollar and the quote currency is the Japanese Yen. This means that you can buy USD by selling Japanese yen for 113.75 and sell USD by buying Japanese Yen for 113.70. As explained earlier all currencies are quoted against the U.S dollar, except for Euro, British Pound and Australian Dollar Reymount Investment offers forex dealing contracts on all major currency pairs with competitive spread rates of 3 to 5 pips on them. This spread rate may invariably vary according to the market conditions.

TRADING FOREX

Why trade on Forex?

Like any business unit, forex trading is carried out by investors to earn profits from the moving market. The main purpose of the market is to buy or sell currencies and earn profit from the transaction. By large currencies that have strong value are traded in the market. The United States Dollar (USD), the Euro (EUR), New Zealand (NZD), Australian Dollar (AUD), Japanese Yen (JPY), Swiss Franc (CHF) and Canadian Dollar (CAD) are the most widely traded currencies. Below is a small example that illustrates a trade activity

Trade Details

Desired Currency Pair: USD/JPY

Current Market Price: 103.50/55

Type of Order: Buy Order

Number of lots: 1 lot (1 lot=100,000 units of base currency)

Assume that Trader A decides to buy Japanese yen by selling dollar. In this note Trader A will sell 100,000 units of USD for 103.50 yen. When the market moves to 103.40/45 he intends to buy back the dollar, where Trader A would have earned a spread rate 5 pips on this deal. Depending upon market volatility, traders perform either a buy (going long) or sell (going short) order. Different spread slabs are available for each currency pairs in respect to their demand or supply in the market.

MARGIN

The modern day forex trading system has devised various business strategies that hold equal opportunities for both mid-sized and large institutional clients. Previously, trading in the forex market required individual investors to maintain a very huge amount as initial investment, which was regarded as impossible. Later on trading currencies on margin basis was introduced. This system achieved immense support from the entire market groups and has eased the pressure that existed before.

So what does a margin mean? Margin is small amount of money, usually like collateral that is required to be deposited by the client while creating a forex account with us. By maintaining a small amount as margin, clients can control huge volume of transactions. This money is also utilized to cover any future loss incurred by the client. This amount is usually utilized to cover any future loss on the trades executed.

Implementing these innovative ideas in the trading system, we consider that we are an equal opportunity provider, framing trade schemes that are suitable for any class of investors. Clients of Reymount Investment are required to place an initial margin of 1% on the original contract size. Trading on margin basis ensures that the clients never get to lose more than what they have invested. Constant margin checks are performed by our Reymount Net Trader at frequent intervals. Whenever a new order is placed by the client, the system automatically calculates for available margin balance. In case of insufficient balances, the system rejects any new orders. Similarly, if the value of open positions held by the client drops below 75% of the initial balance, the system closes all open position at current available market price. At any point of time, Reymount reserves the right to close all open positions without consulting the client. Additional balances have to be made when a client's initial margin drops in value by 50%. Therefore it is the sole responsibility of client to monitor his/her account balances. Reymount maintains its margin percentage as low as 1%. However this level may change according to market conditions.

SPOT FX AND METALS DETAILS

SPOT FX
Product
Symbol
Size
Margin
Trading Hours
Min. Tick
Spreads
Euro
EUR/USD
€100,000
1,000.00
24 Hours/Mon-Fri
0.0001
3-5
Swiss Franc
USD/CHF
150,000 SF
1,000.00
24 Hours/Mon-Fri
0.0001
3-5
British Pound
GBP/USD
£ 100,000
1,000.00
24 Hours/Mon-Fri
0.0001
3-5
Australian Dollar
AUD/USD
A$ 100,000
1,000.00
24 Hours/Mon-Fri
0.0001
3-5
Canadian Dollar
USD/CAD
C$ 100,000
1,000.00
24 Hours/Mon-Fri
0.0001
3-5
Japanese Yen
USD/JPY
¥10 Million
1,000.00
24 Hours/Mon-Fri
0.0001
3-5
New Zealand Dollar
USD/NZD
NZ$ 10 0, 0 0 0
1,000.00
24 Hours/Mon-Fri
0.0001
3-5
Singapore Dollar
USD/SGD
S $ 2 5 0, 0 0 0
1,000.00
24 Hours/Mon-Fri
0.0001
3-5
Mexican Peso
USD/MXN
1 Million Peso
1,000.00
24 Hours/Mon-Fri
0.001
3-5
Polish Zloty
USD/PLN
500,000 Zloty
1,000.00
24 Hours/Mon-Fri
0.0001
10-20
Czech Koruna
USD/CZK
3 Million ZCK
1,000.00
24 Hours/Mon-Fri
0.001
10-20
Danish Krone
USD/DKK
2½ Million DKK
1,000.00
24 Hours/Mon-Fri
0.0001
5-10
Swedish Krona
USD/SEK
2½ Million SEK
1,000.00
24 Hours/Mon-Fri
0.0001
10-20
Norwegian Krone
USD/NOK
2½ Million NOK
1,000.00
24 Hours/Mon-Fri
0.0001
10-20
METALS
Product
Symbol
Size
Margin
Trading Hours
Min. Tick
Spreads
Spot Gold XAU 100 Troy Oz 1,000.00 24 Hours/Mon-Fri $ 0.05 40 Cents
Spot Silver XAG 5,000 Troy Oz 1,000.00 24 Hours/Mon-Fri $ 0.01 2 Cents