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 your leverage, which moves your Take-Profit and Stop-Loss levels and calculates your contract size. 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.
Make your prediction- Will the price of the underlying asset rise or fall by Expiry Time?
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: