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Forex

1. How does Forex trading work? How do I make profit?

Currencies are traded in pairs. When you trade currencies, you are simultaneously buying one currency and selling the other. For example, when you are buying EURUSD, you speculate that the price of Euro will rise against the USD. If you are correct and the market moves towards your predicted direction, you make a profit. If the market moves against your position, you make a loss.


2. What is position size in Forex trading and what's the minimum size I can trade?

Position size or trading volume is how many lots or currency units you take on a particular trade. When trading currencies on Fondex cTrader, the minimum trading volume is 0.01 lot or 1000 currency units.

Indices

1. What are Indices? How do I make profit when I trade CFDs on Indices with Fondex?

Stock Indices represent the most significant shares trading on a particular stock exchange. For instance, Germany 30 (DAX) represents the 30 largest companies trading on Frankfurt Stock Exchange and the FTSE 100, the 100 top shares trading on the London Stock Exchange. When buying an index contract, you speculate that its price will rise whilst when selling an index contract, you speculate that its price will drop. For example, if you enter a long position on Germany 30 and its price rises, then you will make profit on this position. However, if the market moves against your prediction and the index’s price drops, then you will make a loss.


2. How is position size defined when trading Indices? What’s the minimum I can trade?

Position size refers to the amount that you buy or sell when you take a trade. Indices are traded in either lots or contracts. The minimum trade size for Indices is 1 lot, which equals to 1 contract.

Shares

1. How do I make profit when trading Share CFDs with Fondex?

Fondex offers you a superior trading platform where you can both buy and sell the available instruments. For instance, if you believe that the Facebook share price will drop, you may opt to enter a “Sell” position. If you are correct and the market moves towards your predicted direction, you make a profit. If the market moves against your position, you make a loss.


2. Do I own a stake of the underlying asset?

No, you don’t. If, for example, you trade CFDs on the Amazon share, you just speculate on its rising or falling prices. Your profit/loss is the difference between the open price and the close price.


3. What are the advantages of trading Share CFDs over investing in actual Shares?

  • Short selling actual stocks is a controversial activity which is not recommended for the average investor.In contrast, when you are trading CFDs, you can both go long and short, taking advantage of the constant price fluctuations.
  • You can trade with leverage that is typically higher compared to a shares dealing account. Hence, for the same capital investment, you gain exposure to a larger amount of shares compared to an investor who buys physical assets.
  • Trading Share CFDs is ideal for traders looking for short or medium term opportunities. On the other hand, investing in actual shares is more of a medium or long-term investment; if you were to invest a set amount of funds, you wouldn't be able to exploit other trading opportunities until you sold part of your portfolio. CFDs trading allows you to trade as often or as rarely as you wish.

4. What is position size in shares trading and what's the minimum I can trade?

Position size is how many shares you buy or sell on a particular trade. In Fondex cTrader, position size is measured either in lots or share units.The minimum trade size for Share CFDs is 1 lot which is equal to 1 share.

Metals

1. How do I make profit when trading gold, silver and palladium with Fondex?

You just trade the exchange rate of metals against currencies such as the dollar or the euro. For example, if you believe that the price of gold (XAU) will rise against the dollar(USD), you may opt to enter a “Buy” position. If you are correct and the market moves towards your predicted direction, you make a profit. If the market moves against your position, you make a loss.


2. What is position size and what's the minimum I can trade?

When trading Precious Metals, position size is how many lots or ounces you take on a particular trade. The minimum size you can trade on Fondex cTrader is 0.01 lots or 1 ounce.

Energies

1. How do I make profit when trading CFDs on Oil and Gas with Fondex?

Oil is traded in Barrels and Natural Gas in MMBTus (one Million British Thermal Units). Alternatively, you can trade energies in lots where 1 lot equals 1000 Barrels or 10.000 MMBTus. When buying an energy, you speculate that its price will rise versus the USD. When you are short selling an energy you speculate that its price will fall versus the USD. If your prediction is correct, you make a profit. If you are wrong and the market moves to the opposite direction, you make a loss. Your profit/loss is the difference between the open price and the close price.


2. What are the benefits of trading Oil?

Oil prices are typically affected by supply, demand, geopolitics and reserves. Oil is one of most actively traded commodities worldwide and an excellent way to diversify your portfolio. A highly liquid, 24-hour market, oil is one of the most volatile instruments and its prices fluctuate constantly. The fast price movements of this market and the frequent trading opportunities they create are especially attractive to intraday or other types of short-term traders.


3. What is position size and what's the minimum I can trade?

Position size refers to your trading volume or the amount that you buy or sell when you place an order. As mentioned above, crude oil is traded in either barrels or lots. The minimum size you can trade is 0.01 lot or 10 barrels. Natural gas is traded in either MMBtu or lots and the minimum tradable size is 0.01 lot or 100 MMBtu.

ETFs

1. I am not familiar with ETFs. What are they?

ETFs are marketable securities that track assets such as commodities, bonds or indices. There are two types of ETFs available in Fondex: PowerShares and iShares. PowerShares cover multiple market indices as well as the commodities market. Each iShares fund tracks a bond or stock market index. ETFs trading resembles stock and other CFDs trading in the sense that you can hold both a long and short position, use leverage and apply similar risk management strategies.


2. How do I make profit when trading PowerShares and iShares ETFs with Fondex?

You can either buy or sell these instruments. When buying a PowerShare or iShare, you speculate that its price will rise versus its underlying currency. When you are short selling an ETF, you speculate that its price will fall versus its underlying currency. If your prediction is correct and the market moves towards your predicted direction, you make a profit. If the market moves unfavourably, you make a loss.


3. What is position size and what's the minimum I can trade?

Position size is how many shares you buy or sell on a particular trade. In Fondex cTrader, position size is measured either in lots or share units.The minimum trade size for Powershares and iShares is 1 lot which is equal to 1 share.

Cryptocurrencies

1. What is the difference between an actual cryptocurrency and cryptocurrency CFDs?

Contrary to buying and owning a cryptocurrency, when you trade a CFD, you do not own the underlying asset. Instead, you speculate on its rising or falling prices. For instance, if you believe that the price of Bitcoin will rise against the USD, then you BUY Bitcoin.


2. What are the advantages of choosing Fondex over an exchange?

  • You can both buy and sell, taking advantage of small price fluctuations and shorter time frames. Buying Bitcoin via an exchange could work better as a medium or long-term investment whereas CFDs are also appropriate for short-term trading.
  • You can trade on leverage , controlling a larger amount of money with a relatively small deposit
  • No transaction fees.
  • Your deposits don’t run the risk of being blocked. Banks are often blocking deposits of money earned from crypto-exchanges. When you trade with Fondex, your deposits don't run this risk-you can rest assured that your money won't be stuck.

3. Which cryptocurrency CFDs does Fondex offer?

Fondex offers CFDs on Bitcoin, Ethereum, Ripple, Litecoin, Dash and Emercoin crosses. You can trade more than 20 cryptocurrency pairs and take advantage of our tight spreads and unbeatable execution!


4. Why are cryptocurrency CFDs quoted in pairs? What does BTC/USD mean?

When you trade cryptocurrency CFDs, you buy or sell one cryptocurrency against another cryptocurrency or a regular currency. For example, when you trade BTC/USD, you speculate on Bitcoin’s price rising or falling against the USD. When you trade ETH/BTC, you speculate on Ethereum’s price rising or falling against the Bitcoin.


5. How do I make a profit when trading cryptocurrency CFDs with Fondex?

When trading CFDs , your profit/loss is the price difference between the asset’s open and close price. For example, if you enter a BUY order for BTC/USD and its price rises, you make a profit. However, if you are wrong and its price drops, you make a loss.


6. What is a crypto-wallet? Do I need one to trade with Fondex?

Wallets are used to store, send, receive and track your cryptocurrency assets. Since you do not own any actual assets, you do not need to have a wallet when trading cryptocurrencies with Fondex. Your funds are kept safely with top-tier banks in segregated accounts and can be accessed at your discretion.


7. What is the minimum lot size I can trade?

The minimum trade size for cryptocurrencies is 0.01 lots.


The nitty-gritty of cryptocurrencies


1. What do we mean by “altcoins”?

The term “altcoin” is an abbreviation of “Bitcoin alternative” and hence refers to all other cryptocurrencies apart from Bitcoin.


2. What is Ripple? How can I trade it on Fondex cTrader?

Ripple (XRP) is a crypto-asset that is fundamentally different from Bitcoin and doesn't use blockchain technology. Investors' interest in Ripple has been growing continuously, and over the last year, prices have skyrocketed.

Fondex offers 2 Ripple crosses: XRP/USD and XRP/BTC.


3. What is Litecoin?How can I trade it on Fondex cTrader?

“Litecoin (LTC) is a peer-to-peer digital currency that enables instant, near-zero cost payments to anyone in the world”. Litecoin has currently the fifth largest market capitalisation among cryptocurrencies.

Fondex offers 5 Litecoin crosses: LTC/USD, LTC/EUR, LTC/BTC, ETH/LTC, LTC/JPY.


4. What is Ethereum?How can I trade it on Fondex cTrader?

Ethereum (ETH) is an open software platform based on blockchain technology. Its digital currency is also called Ethereum or Ether. Fondex offers traders 7 Ethereum crosses: ETH/USD, ETH/EUR, ETH/BTC, ETH/CNH, ETH/JPY, ETH/LTC and ETH/RUB.


5. What is Dash?How can I trade it on Fondex cTrader?

Dash (DSH) is an open source peer-to-peer cryptocurrency.

Fondex offers traders 3 Dash crosses: DSH/BTC, DSH/CNH, DSH/USD.


6. What is Emercoin?How can I trade it on Fondex cTrader?

Less known than other cryptocurrencies Emercoin (EMC), also uses blockchain technology.

Fondex offers Emercoin trading against the US Dollar (EMC/USD).