New to Forex

What is Foreign Exchange market (Forex, FX)

ALL PROPERTY LTD offers online Forex trading services for traders wanting to make speculative transactions on the exchange rate between two currencies. These rates may be influenced by world economic and political events, currency rate differentials, as well as many other factors including extreme weather conditions (hurricanes), acts of terror etc. The Foreign Exchange Market is the largest marketplace in the world with than 1.8 trillion dollars changing hands daily and so making it one of the most attractive and lucrative markets.

How does it work?

FX market allows you to buy and sell currencies against each other and speculate on the differences in exchange rates. Making a transaction on the Foreign Exchange Market is simple: the procedures are identical to that of any other market so switching to trading currencies is straightforward for most traders.

Buying/Selling - B/S

If you want to open a position (i.e.: place an order to sell – to make a profit if the exchange rate falls) you have to choose the amount (i.e.: 100.000 EURUSD) from the drop down menu on the platform and then click the mouse on the sell currency button: SELL (if you want to place an order to buy, you should act in reverse). This will open a position in the market and you will receive an immediate notification of it on your trading station. To close an open position, you have to do the opposite of the initial operation

How does the B/S system work?

As with any market, for each currency pair, there are 2 prices. The difference between them is called the spread. The spread is measured in points or pips – lowest decimal figure in a currency rate. For a EURUSD a pip equals 0.0001 (or 10 dollars on 100.000), for EURJPY a pip equals 0.01 (or 1000 yen on 100.000).

Working hours

The Foreign Exchange Market, based on ‘spot’ transactions, is unique in comparison with all other global markets. This is because trading takes place 24 hours a day, 5 days a week (ACM platform works from Monday 00:00 to Friday 23:00 CET). Financial centers are open for work, and banks and other organizations exchange currencies in different parts of the world for different purposes. Therefore, trading never stops apart from a short break during the weekend.
Early closings are possible depending on calendar arrangement such as, for example, Christmas or new year’s.

Trading margins

A margin deposit is not, as many traditional traders suggest, the payment in cash for purchasing market shares. A margin is in fact a guarantee or a trust deposit, providing protection from losses during a deal? It allows traders to open positions on amounts that greatly exceed their account limits and so increase their buying power. ACM offers a 1% margin (or 1:100 leverage), which means you can control 100 times your deposit in the real market.
If the funds in the account, in the course of trading, fall below the prescribed margin, your positions will be closed automatically without prior notice. Using this system, the client’s account cannot go overdrawn even under volatile, fast-changing market
conditions.

The formula for calculating margins is as follows:
(account balance + profit/loss) : open position = the margin

Islamic Accounts.

ALL PROPERTY LTD offers FX trading under Sharia'a compliant regulations. Henceforth, an investor is able to trade under a commission free platform, entering and exiting the markets without having to pay a fee. Furthermore, ALL PROPERTY LTD allows its clients to hold there position for as long a period of time as they choose without accumulating any interest on their overnight position.
In conclusion, interest free and commission free trading under one platform.

Rollover on positions (swap)

For the sake of transparency and unlike any other online broker we actually have a complete explanation of applied interest rates and the very tight interest rate spreads we apply. The exact calculation is based on 1 day interbank deposit rates and is as follows:

(1 day interbank dep. rate for base ccy.) - (1 day interbank dep. rate for counter ccy.) = interest rate differential
Interest rate differential / 365 = daily differential
(Daily differential x total open position in currency pair) / 100