Fixed by the platform and up to 1 month long
Potential payout percentage:
Up to 500%
Tradable assets: Currencies, Commodities and Pairs
From the tool specifications, it is clear that FX/CFD is a unique tool on the trading platform. It allows traders to lay the terms of their success from determining their payout to setting their Stop-Loss level. By definition, the Stop-Loss level is the price level at which the trade is considered Out-Of-The-Money and the investment amount is lost.
To trade with FX/CFD, you need to choose an investment amount. This is called your Stop-Loss amount and it defines how much money you stand to lose if the price of the underlying asset goes in a direction different than anticipated.
The second thing to determine is your Take-Profit amount. This decision is important because it sets your Take-Profit level, or the barrier that the underlying asset must breach for the trade to be In-The-Money. The higher the payout percentage, the greater the difference between the target rate and the current price of the asset.
The last consideration is yourleverageThe use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment., which moves your Take-Profit and Stop-Loss levels and calculates yourcontract sizeA contract size is the deliverable quantity of commodities or financial instruments underlying futures and option contracts that are traded on an exchange. The larger the leverage you choose, the closer the Take-Profit and Stop-Loss levels move to the current price of the asset. This subsequently increases your chances to win the trade but also increases your risk level.
For example, let’s say USD/JPY is trading at 115.428 at 10:50 GMT. A trader thinks that the price of the asset will drop in the coming hours or days. He decides to place a Put option with the following parameters:
If the price of the asset drops to touch the Take-Profit level at least once by the predetermined Expiry Time, the trade is In-The-Money and the trader earns the payout of $300. Conversely, if the price of the asset rises to touch the Stop-Loss level, the trader loses his investment.
FX/CFD is the fifth tool on the toolbar of the Trading Platform. To use FX/CFD for trading, log in to your account and head to the trading platform. Then follow the steps below:
Choose an asset. This can be a currency, a commodity or a pair of correlated assets.
Place a Call option if you think the price of the asset will rise by Expiry Time or place a Put option if you think the price will fall.
Note the Expiry Time and click Apply on the Trade Approval window.
FX/CFD is a tool that offers many features to deliver a proper trading experience. The biggest appeals of the tool include: