RISK WARNING NOTICE
Before trading Contracts for Difference, Spread Bets or Foreign Exchange (ForEx or FX), ensure you fully understand the risks involved. These products may not be suitable for all types of investor. Trading in Contracts for Difference / Spread bets / FX carries a high degree of risk and is generally considered suitable only for the more experienced investor. Leveraged products carry a high degree of risk for your capital, and in some circumstances you may be liable for a greater sum than your initial capital invested. Past performance is not necessarily a guide to future performance. Seek independent financial advice if necessary. These products are suitable only for people over the age of 18. Information and analysis produced by Pretium Securities Ltd does not constitute a recommendation or offer to make a transaction in any derivatives or securities, and is intended to be general in nature. Pretium Securities Ltd is fully authorised and regulated by the Financial Services Authority.
The past performance of any investment is not necessarily a guide to future performance. The value of shares or income from them may go down as well as up. The value of shares may rise as well as fall due to the volatility of world markets, economic conditions/data and/or changes in the rate of exchange in the currency in which the investments are denominated. You may not necessarily get back the amount you invested. If you are in any doubt about investment, you should seek independent financial advice
 

 

Benefits of Forex
 

1. Cost Effective Trading

2. Margin Trading

3. 24 Hour Market

4. Liquidity

 

1. There is no commission to pay, no matter how often you deal or the size of your trade. Trade from as low as USD 10,000 (or equivalent) and as high as USD 1 Billion.

2. Forex is traded on margin, typically 100:1 leverage. This is a more efficient use of your capital because you only have to allocate a very small proportion of the value of your position to secure a trade, while maintaining full exposure to the market. In effect you are able to magnify the returns on your investment. However it is important to note that although if the markets move in your favour profits will be magnified, if the position turns against you your losses will also be magnified.

3. Forex is an over-the-counter (OTC) market which means trades do not take place through a centralised exchange. This means that Forex trading can and does take place around the world 24 hours a day.

Trading starts in New Zealand followed by Sydney, and moves around the world to Tokyo, London, and New York. Unlike any other financial markets, investors can respond to currency fluctuations caused by economic, political and social events at the time they occur, without having to wait for markets to open.

4. The Forex market is the most heavily traded financial market in the world and with so many market participants trading over 24 hours; the Forex market is more liquid than any other financial market. This means clients have access to size, tight dealing spreads and lower margin rates than other financial market. It also means Forex markets are less prone to gapping than less liquid markets such as Equities.