/ Forex /

What is a Forex?

More about Forex

The Forex (FX) market is the largest and most liquid financial market in the world with an estimated USD 4 trillion traded each day and it is a continuous market providing Forex traders with 24-hour market access. Market closes on weekends and public holidays subject to market secessions and local holiday schedules. Forex trading, also known as “foreign currency trading”, offers currency traders huge opportunities to benefit from fluctuations in the currency markets. This can be achieved by opening a Forex margin trading account with us, and you can either go long or short on all currency pairs. We are your counter-party for all trades. But also we would like you to note that you should be cautious that because currency trading involves significant risk of loss. You do not acquire physical currency when forex trading. We suggest you to try your hands on Forex investing via demo accounts, and please make sure you carry out due diligence and choose a regulated reputable broker.

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/ Advantages of Forex trading /

High Liquidity

The foreign exchange market is the largest financial market in the world, with transactions equivalent to $5 trillion a day. This liquidity, especially in the major currency pairs in the foreign exchange market, helps to maintain price stability and exchange rates. Such liquidity helps to maintain price stability, especially for major currency pairs in the foreign exchange market (but price stability is not guaranteed at any time).

High Flexibility

Foreign exchange is a 24x5 market - You can trade anytime and anywhere in multiple trading platforms

1:100 Leverage

We offer a 1: 100 leverage *. The leverage can amplify the gain, but it will also magnify the loss. Therefore, margin trading must be conducted responsibly.

*Application may on request raise to 1: 200

Margin Trading

Margin trading enables investors to hold assets with nominal value higher than the capital held in their accounts. However, this does involve more risk, and if the market changes its position on traders, it could cause significant losses.

Professional Research and Teaching Tools

In order to support customers to formulate trading tactics, Hantec provides investors with a variety of resources for free, including detailed foreign exchange e-books, periodicals, daily /weekly marketing research reports, financial calendar, professional market analysis, online foreign exchange courses, webinars and etc.

Low Transaction Cost

As a volume-based brokerage, our daily trading volume enables us to greyuce transaction costs associated with your transactions

/ Popular Currency Pairs for Trading

More about Forex

/ Something about Forex /

Currency pairs

In Forex market, all currencies are traded in pairs which named by two abbreviation of currencies.

*Example:
AUDUSD represents Aussie dollar against US dollar. The “”Base”” currency is the first currency in the pair. The “”Quote”” currency, or “”counter”” currency is the second currency in the pair. “AUDUSD is currently trading at 1.0200” means 1 AUD ( Base currency) is equal to 1.0200 USD (Quote currency)”

Pip/ Tick

The minimum rate fluctuation is called a point, a pip or a tick.

For currency pairs quoted with 4 decimal points, say AUDUSD, the minimum rate fluctuation is 0.0001

For currency pairs quoted with 2 decimal points, say USDJPY, the minimum rate fluctuation is 0.01
Please be aware that price offegrey by Hantec includes fractional pips. Accordingly, you may see there is an additional decimal place (d.p.) after the smallest floating pip, i.e. the 5th d.p. of AUDUSD and the 3rd d.p. of USDJPY

Bid Price & Ask Price

On your trading platform, you will find the quoted currency pairs are shown as follow:

Currency Pair Bid Ask
AUDUSD 1.0200 1.0201

Bid Price: This price is used for you to SHORT/SELL the currency pair. In this case, you can short 1 AUD for 1.0200 USD.
Ask Price: This price is used for you to LONG/BUY the currency pair. In this case, you can long 1 AUD for 1.0201 USD.

Examples of Forex Trading

Foreign exchange trading means to buy one currency and sell another at the same time, and that’s explain why we always see a pair of currency for quotation while doing such trades.
Trading unit: 1 lot = 100,000 base currency
Trading direction:long
Leverage: 100 times

Open a Position:
EUR/USD:
1.1267/1.1268

Non-margin trading (1 lot):
100,000 x 1.1268 = US$112,680

Margin trading (1 lot):
112,680 ÷ 100 = US$1,126.8

Liquidation:
Ask price:
1.1277/1.1278
Price: 1.1277USD
1 lot: 112,770USD

Profit and Loss
Profit:
112,770-112,680 = 90USD

Liquidation:
Ask price:
1.1257/1.1258
Price: 1.1257USD
1 lot: 112,570USD

Profit and Loss
Loss:
112,680 - 112,570 = 110USD