Account Types Offered by Axiom Traders

 

• Mini accounts: deposit from $100, contract volume from 0.1 micro lot, in case of minimum lot a point approximately equals to 1 cent. Credit leverage from 1:100 to 1:500. Currency pairs and metals trading are available.

• Standard accounts: deposit from $1000, contract volume from 0.01 standard lot, in case of minimum lot a point approximately equals to $0.1. Credit leverage from 1:100 to 1:500. Trading currency pairs and metals.

• ECN-accounts: deposit from $5000, credit leverage from 1:33 to 1:200, unlimited quantity of simultaneously opened positions, minimum lot 0.1, floating spread. Trading CFDs.

• CFD accounts: deposit from $1000. Minimum contract volume amounts to 0.1 lot. Credit leverage 1:100 for CFD Stocks, for CFD Futures leverage depends on contract. CFD-instrument trading.

• Demo-accounts: these accounts are opened directly from the MetaTrader4 terminal. Trading conditions are completely similar to the Standard account conditions. Trading is carried out in risk-free test mode.

• Arbitrage Accounts: these accounts are opened with Axiom Traders VertexFX or MT4 trading platform with 2 liquidity providers and trades are executed in both liquidity providers with always one side Buy and other side Sell, deposits minimum for each account is $5000 credit leverage from 1:00 to 1:300, unlimited quantity of simultaneously opened positions hedged with both brokers, minimum lot 0.1, floating spread. One time Server and System Setup Cost at $5000 and $1000 as monthly maintainence cost. Trading only currencies pairs.

• HFT Accounts: deposit from $5000, contract volume from 0.01 standard lot, in case of minimum lot a point approximately equals to $0.1. Credit leverage from 1:100 to 1:500. Trading currency pairs with attachment of HFT Trading System developed by Axiom Traders Developers. One time Server and System Setup Cost at $5000 and $1000 as monthly maintainence cost. 

 

Margin Trading Concept and Leverage

 

The margin trading principle is as follows. An exchange market intermediary (an Internet-broker or a dealing center) provides its clients with a credit to make it possible for them to carry out speculative transactions with currencies. At the same time client's own funds are used as a pledge and are called security deposit (margin). This security deposit usually amounts to 1-5% of a contract a client enters on the Forex market and depends on the credit leverage provided.

 

Credit leverage may amount to 1:10, 1:20, 1:50, 1:100, 1:200 and even 1:500. This means that if you have a security deposit of 10000 USD, you can be given credit from 20,000 USD to 200,000 USD to carry out trades in Forex. As you trade larger volumes you can gain larger profit. But as in this case trades are carried out with use of credit, risk of loss is directly-proportional to probable profit.

 

Quote Types (Direct and InDirect Quotes, Cross Rates)

 

Direct quote — is a method of exchange rate recording implicating cost of a foreign currency unit being expressed in terms of a certain amount of national currency units (e.g. USD/CHF – US Dollar/ Swiss franc is a direct quote for Switzerland, USD/JPY – US Dollar/Japanese Yen is a direct quote for Japan).

Indirect quote — is a method of exchange rate recording implicating cost of a domestic currency unit being expressed in terms of a certain amount of a foreign currency units (e.g. EUR / USD – Euro/ US Dollar, GBP / USD – Great Britain Pound / US Dollar).

Cross-rate — is a currency exchange rate between two currencies determined with use of the third currency (in relation to Forex this term usually refers to currency pairs without USD). Such rates are necessary in case volume of direct exchange operations between two currencies is comparatively small and, therefore, direct exchange rates cannot be considered representative. Examples of cross-rates are GBP/JPY or GBP/EUR.

 

Quote. Ask and Bid Proces and Spreads

 

• Any quote in the Forex market has two parts (two prices) – Buy rate (bid) and Sell rate (ask). These parts are usually separated by “/”, where the Buy price comes first, and the sell price is the second. Under Buy price we understand a price at which the party that offers a quote is ready to buy a base currency. Sell rate is the price at which the party that offers the quote is ready to sell you the base currency.

• Each change of buy and sell rates by market maker is called a tick. Minimum value of quote change (.00001 - a ten-thousandth) is called a point (pips). Different instruments (currency pairs) are quoted with different precision, i.e. with different number of decimal signs. Most currency pairs are quoted up to 0.00001, but some, e.g. yen and its cross-rates – up to 0.001.

• The difference between buy and sell prices (the left and right sides of the currency pair) is called spread. Spread is the source of profit for the party that provides quotes.

 

Transaction Volume, Measurment and Calculation

 

Transaction volume in the Forex market is measured in lots. One standard lot amounts to $100 000 units of a base currency. Let’s take US dollar as the base currency. On Standard and ECN accounts 1 lot usually amounts to 100 000 US dollars. On micro account 1 lot amounts to 100 000 cents. Trade operation volume is calculated as a product of a standard lot volume (100 000 units, e.g. US dollars) and lot size.

Trend. Trend types

 

Price movement direction is called trend.

 

Classification of trends depending on price movement direction:

• Ascending (bullish up trend) - prices move up. In case of ascending trend, every subsequent high price and every subsequent low price are higher than the previous ones. It emerges, when sellers cannot or don’t wish to sell an asset at lower prices. The line limiting such trend at the bottom is called the trend line.

• Descending (bearish, down trend) - prices move down. In case of descending trend, every subsequent high price and low price are lower than the previous ones. Trend line limits a price chart above. It occurs when buyers cannot or do not want to buy the product at higher prices.

• Flat (sideways trend, whipsaw) – no definite price movement direction (price moves within a price corridor).

Classification of trends in terms of duration:

• Long-term trend (basic) — trend with duration from 6 months to several years.

• Mid-term trend (intermediate) — trend with duration from 2 weeks to 6 months.

• Short-term trend (minor) — trend with duration up to 2 weeks.

 

Order types

 

• MT4 and VertexFx Trading Terminal allows preparing and giving orders to a broker to execute trading operations. Moreover, the terminal allows controlling and managing opened positions. For these purposes, several types of trading orders are used. Order is a client's instruction given to a brokerage company to carry out a trading operation.

• Market order is an instruction given to a brokerage company to buy or sell a financial instrument at a current price. Execution of this order results in a trade position opening . Securities are bought at Ask price (demand price) and sold at Bid price (supply price). Stop Loss and Take Profit orders (described below) can be added to a market order. Market orders execution mode depends on a financial instrument involved in trading.

• Pending order is a trader’s instruction given to a brokerage company to buy or sell a financial instrument in the future at a specified price. This order is used for trade position opening once future price reaches the specified level.

• Buy order is opened at Ask price (larger price from the two) and closed by selling at Bid price. By giving the Buy order trader opens a so called long position, which is purchase of a base currency for a quoted currency.

• Sell order is opened at Bid price (smaller price from the two) and closed by buying at Ask price. By giving the Sell order trader opens a so called short position, which is selling of a base currency for a quoted currency.

 

Stop Loss

 

This order was designed for loss minimization in case financial instrument price starts to move in unprofitable direction. In case current instrument price reaches a stop loss level a position is closed automatically. This order is always attached to an opened position or to a pending order. It is given to a brokerage company only together with a market or a pending order. Terminal checks long positions to meet the order’s conditions using Bid price, and short positions using Ask price.

 

Take Profit

 

Take Profit was designed for taking profit when current price of a financial instrument reaches the predicted level. The order execution leads to position closing. It is always attached to an opened position or to a pending order. This order may be given only when added to a market order or a pending order. Terminal checks long positions to meet the order’s conditions using Bid price, and short positions using Ask price.

 

Swap

 

Swap — a fee charged for keeping positions opened overnight. Swap is charged individually for every opened position. It can be both positive and negative. Swap values for all trading instruments are presented in the Contract specification section of the company’s website. Swaps are charged every day, excepting weekend. Triple swap is charged on Wednesday. Swap is charged at 00:00, trading server time.