To view trading models for different instruments that are traded on the WD4, you may click on the links below:
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TRADING FOREX CURRENCY PAIRS
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An investor expecting the price of a particular currency pair to increase over a given period of time, can seek to profit by "buying" a Forex currency pair contract (‘lot'). If correct in forecasting, the direction and timing of the price change, the same contract can later be sold at the higher price, thereby yielding a profit. If the contact declines rather than increases, the contract will result with a loss. Vise versa, if the price of the Forex currency pair is expected to decline, over a given period of time, an investor can seek to profit by "selling" and at the later stage "buying" back the same Forex currency pair contract, at the lower price thereby yielding a profit. Due to the leverage trading, the gain or loss may be greater than the initial margin deposited.
For example, if the client requests a quote on Forex currency pair, i.e. GBPUSD, he will receive the BID/ASK prices representing a spread between prices offered for "selling" and price offered for "buying" the particular Forex currency pair. The "Bid" price represents the rate at which the client can "sell" GBP against USD. The "Ask" price represents the rate at which the client can "buy" GBP against USD.
"Buying" to profit from the expected price increase ("Going Long")
If the client wishes to speculate on GBPUSD currency pair believing that the GBP will strengthen against USD in the future, then the client should "buy", "x" number of lots of GBP (each lot representing 100,000 GBP) as he/she wishes and as the equity of his/her trading account allows. This "entry" trade is called "Going Long".
If GBP appreciates against USD, the client can "close" the trade, with a profit, by "selling", "x" number of lots of GBP. The profit resulted from the particular "closed" trade is calculated by subtracting the "buying" price from the "selling" price and multiplying the difference by the contract size of the particular currency pair and the number of lots traded.
Example 1:
"bought" 1 lot of GBPUSD at 1.4540
"sold" 1 lot of GBPUSD at 1.4585
Calculation:
("selling price" - "buying price") * contract size * number of lots = realized profit/loss
(1.4580 - 1.4540) * 100,000 * 1 = + USD400.-
"Selling" to profit from the expected price decrease ("Going Short")
If the client wishes to speculate of GBPUSD currency pair believing that the GBP will weaken against USD in the future, then the client should "sell", "x" number of lots of GBP (each lot being 100,000 GBP) as he/she wishes and as the equity of his/her trading account allows. This "entry" trade is called "Going Short".
If GBP depreciates against USD, the client can "close" the trade, with a profit, by "buying", "x" number of lots of GBP. The profit resulted from the particular "closed" trade is calculated by subtracting the "buying" price from the "selling" price and multiplying the difference by the contract size of the particular currency pair and the number of lots traded.
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Example 2:
"sold" 3 lots of GBPUSD at 1.4580
"bought" 3 lots of GBPUSD at 1.4540
Calculation:
("selling price" - "buying price") * contract size * number of lots = realized profit/loss
(1.4580 - 1.4540) * 100,000 * 3 = + USD 1,200.-
Note: In the two examples above, in cases where the price of Forex currency pair moves in the opposite direction than expected, the realized profit shown above becomes a loss.
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An investor expecting the price of Gold to increase over a given period of time, can seek to profit by "buying" the contract (lot). If correct in forecasting, the direction and timing of the price change, the same contract can later be sold at the higher price, thereby yielding a profit. If the contact declines rather than increases, the contract will result with a loss. Vise versa, if the price of Gold is expected to decline, over a given period of time, an investor can seek to profit by "selling" and at the later stage "buying" back the same contract, at the lower price thereby yielding a profit. Due to the leverage trading, the gain or loss may be greater than the initial margin deposited.
For example, if the client requests a quote on Gold, he will receive the BID/ASK prices representing a spread between prices offered for "selling" and price offered for "buying" . The "Bid" price represents the rate at which the client can "sell" Gold. The "Ask" price represents the rate at which the client can "buy" Gold.
| TRADING SPOT PRECIOUS METALS |
"Buying" to profit from the expected price increase ("Going Long")
If the client wishes to speculate on Gold believing that the price will increase in the future, then the client should "buy", "x" number of lots of Gold (each lot representing 100 oz) as he wishes and as the equity of his trading account allows. This "entry" trade is called "Going Long".
If the price of Gold appreciates, the client can "close" the trade, with a profit, by "selling", "x" number of lots of Gold. The profit resulted from the particular "closed" trade is calculated by subtracting the "buying" price from the "selling" price and multiplying the difference by the contract size of the particular currency pair and the number of lots traded.
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Example1:
"bought" 1 lot of Gold at 875.00
"sold" 1 lot of Gold at 879.00
Calculation:
("selling price" - "buying price") * contract size * number of lots = realized profit/loss
(879.00 - 875.00) * 100 * 1 = + USD 400.-
"Selling" to profit from the expected price decrease ("Going Short")
If the client wishes to speculate of Gold believing that the price will weaken in the future, then the client should "sell", "x" number of lots of Gold (each lot being 100 oz Gold) as he wishes and as the equity of his trading account allows. This "entry" trade is called "Going Short".
If the price of Gold depreciates, the client can "close" the trade, with a profit, by "buying", "x" number of lots of Gold. The profit resulted from the particular "closed" trade is calculated by subtracting the "buying" price from the "selling" price and multiplying the difference by the contract size of the particular currency pair and the number of lots traded.
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Example 2:
"sold" 3 lots of Gold at 879.00
"bought" 3 lots of Gold at 875.00
Calculation:
("selling price" - "buying price") * contract size * number of lots = realized profit/loss
(879.00 - 875.00) * 100 * 3 = + USD 1,200.-
Note: In the two examples above, in cases where the price of Gold moves in the opposite direction than expected, the realized profit shown above becomes a loss.
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| TRADING FUTURE (OTC) PRECIOUS METALS |
"Buying" to profit from the expected price increase ("Going Long")
Future instruments are traded with the forwarded month's value. For example, assuming that now is January, tradable future contract for Gold is February (GCFEB). Over the coming month, the client expects the price to increase and decides to "buy", "x" number of lots of GCFEB (each lot representing 100 oz Gold) as he/she wishes and as the equity of his/her trading account allows. This "entry" trade is called "Going Long".
If the price of Gold appreciates, the client can "close" the trade, with a profit, by "selling", "x" number of lots of GCFEB. The profit resulted from the particular "closed" trade is calculated by subtracting the "buying" price from the "selling" price and multiplying the difference by the contract size of the particular currency pair and the number of lots traded.
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Example 1:
"bought" 1 lot of GCFEB at 875.00
"sold" 1 lot of GCFEB at 879.00
Calculation:
("selling price" - "buying price") * contract size * number of lots = realized profit/loss
(879.00 - 875.00) * 100 * 1 = + USD400.-
"Selling" to profit from the expected price decrease ("Going Short")
Future instruments are traded with the forwarded month's value. For example, assuming that now is January, tradable future contract for Gold is February (GCFEB). Over the coming month, the client expects the price to decrease and decides to "sell", "x" number of lots of GCFEB (each lot representing 100 oz Gold) as he/she wishes and as the equity of his/her trading account allows. This "entry" trade is called "Going Short".
If the price of GCFEB depreciates, the client can "close" the trade, with a profit, by "buying", "x" number of lots of GCFEB. The profit resulted from the particular "closed" trade is calculated by subtracting the "buying" price from the "selling" price and multiplying the difference by the contract size of the particular currency pair and the number of lots traded.
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Example 2:
"sold" 3 lots of GCFEB at 879.00
"bought" 3 lots of GCFEB at 875.00
Calculation:
("selling price" - "buying price") * contract size * number of lots = realized profit/loss
(879.00 - 875.00) * 100 * 3 = + USD 1,200.-
Note: In the two examples above, in cases where the price of GCFEB moves in the opposite direction than expected, the realized profit shown above becomes a loss.
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An investor expecting the price of a particular future (OTC) contract to increase over a given period of time, can seek to profit by "buying" the contract (lot). If correct in forecasting, the direction and timing of the price change, the same contract can later be sold at the higher price, thereby yielding a profit. If the contact declines rather than increases, the contract will result with a loss. Vise versa, if the price of future (OTC) contract is expected to decline, over a given period of time, an investor can seek to profit by "selling" and at the later stage "buying" back the same contract, at the lower price thereby yielding a profit. Due to the leverage trading, the gain or loss may be greater than the initial margin deposited.
For example, if the client requests a quote on future (OTC) contract, he will receive the BID/ASK prices representing a spread between prices offered for "selling" and price offered for "buying" . The "Bid" price represents the rate at which the client can "sell" future (OTC) contract. The "Ask" price represents the rate at which the client can "buy" future (OTC) contract.
"Buying" to profit from the expected price increase ("Going Long")
Future instruments are traded with the forwarded month's value. For example, assuming that now is January; tradable future contract for Euro is March (ECMAR). Over the coming month, the client expects the price to increase and decides to "buy", "x" number of lots of ECMAR (each lot representing 125,000 Euro) as he/she wishes and as the equity of his/her trading account allows. This "entry" trade is called "Going Long".
If the price of Euro appreciates, the client can "close" the trade, with a profit, by "selling", "x" number of lots of ECMAR. The profit resulted from the particular "closed" trade is calculated by subtracting the "buying" price from the "selling" price and multiplying the difference by the contract size of the particular currency pair and the number of lots traded.
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Example 1:
"bought" 1 lot of ECMAR at 1.3350
"sold" 1 lot of ECMAR at 1.3380
Calculation:
("selling price" - "buying price") * contract size * number of lots = realized profit/loss
(1.3380 - 1.3350) * 125,000 * 1 = + USD375.-
"Selling" to profit from the expected price decrease ("Going Short")
Future instruments are traded with the forwarded month's value. For example, assuming that now is January, tradable future contract for Euro is March (ECMAR). Over the coming month, the client expects the price to decrease and decides to "sell", "x" number of lots of ECMAR (each lot representing 125,000 Euro) as he/she wishes and as the equity of his/her trading account allows. This "entry" trade is called "Going Short".
If the price of Euro depreciates, the client can "close" the trade, with a profit, by "buying", "x" number of lots of ECMAR. The profit resulted from the particular "closed" trade is calculated by subtracting the "buying" price from the "selling" price and multiplying the difference by the contract size of the particular currency pair and the number of lots traded.
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Example 2:
"sold" 3 lots of ECMAR at 1.3380
"bought" 3 lots of ECMAR at 1.3350
Calculation:
("selling price" - "buying price") * contract size * number of lots = realized profit/loss
(1.3380 - 1.3350) * 125,000 * 3 = + USD 1,125.-
Note: In the two examples above, in cases where the price of ECMAR moves in the opposite direction than expected, the realized profit shown above becomes a loss.
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"Buying" to profit from the expected price increase ("Going Long")
Future instruments are traded with the forwarded month's value. For example, assuming that now is January; tradable future contract for Crude Oil is March (CLMAR). Over the coming month, the client expects the price to increase and decides to "buy", "x" number of lots of CLMAR (each lot representing 1,000 US barrels) as he/she wishes and as the equity of his/her trading account allows. This "entry" trade is called "Going Long".
If the price of Crude Oil appreciates, the client can "close" the trade, with a profit, by "selling", "x" number of lots of CLMAR. The profit resulted from the particular "closed" trade is calculated by subtracting the "buying" price from the "selling" price and multiplying the difference by the contract size of the particular currency pair and the number of lots traded.
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Example 1:
"bought" 1 lot of CLMAR at 41.90
"sold" 1 lot of CLMAR at 42.20
Calculation:
("selling price" - "buying price") * contract size * number of lots = realized profit/loss
(42.20 - 41.90) * 1,000 * 1 = + USD300.-
"Selling" to profit from the expected price decrease ("Going Short")
Future instruments are traded with the forwarded month's value. For example, assuming that now is January, tradable future contract for Crude Oil is March (CLMAR). Over the coming month, the client expects the price to decrease and decides to "sell", "x" number of lots of CLMAR (each lot representing 1,000 barrels) as he/she wishes and as the equity of his/her trading account allows. This "entry" trade is called "Going Short".
If the price of Crude Oil depreciates, the client can "close" the trade, with a profit, by "buying", "x" number of lots of CLMAR. The profit resulted from the particular "closed" trade is calculated by subtracting the "buying" price from the "selling" price and multiplying the difference by the contract size of the particular currency pair and the number of lots traded.
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Example 2:
"sold" 3 lots of CLMAR at 42.20
"bought" 3 lots of CLMAR at 41.90
Calculation:
("selling price" - "buying price") * contract size * number of lots = realized profit/loss
(42.20 - 41.90) * 1,000 * 3 = + USD 900.-
Note: In the two examples above, in cases where the price of CLMAR moves in the opposite direction than expected, the realized profit shown above becomes a loss.
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An investor expecting the price of a particular CFD contract to increase over a given period of time; can seek to profit by "buying" the contract (lot). If correct in forecasting, the direction and timing of the price change, the same contract can later be sold at the higher price, thereby yielding a profit. If the contact declines rather than increases, the contract will result with a loss. Vise versa, if the price of CFD contract is expected to decline, over a given period of time, an investor can seek to profit by "selling" and at the later stage "buying" back the same contract, at the lower price thereby yielding a profit. Due to the leverage trading, the gain or loss may be greater than the initial margin deposited.
For example, if the client requests a quote on CFD contract, he will receive the BID/ASK prices representing a spread between prices offered for "selling" and price offered for "buying" . The "Bid" price represents the rate at which the client can "sell" CFD contract. The "Ask" price represents the rate at which the client can "buy" CFD contract.
"Buying" to profit from the expected price increase ("Going Long")
If the client wishes to speculate on CFD's believing that the price will strengthen in the future, then the client should "buy", "x" number of lots of CFD (each lot representing 1,000 shares) as he/she wishes and as the equity of his/her trading account allows. This "entry" trade is called "Going Long".
If price appreciates in the future, the client can "close" the trade, with a profit, by "selling", "x" number of lots of a particular CFD. The profit resulted from the particular "closed" trade is calculated by subtracting the "buying" price from the "selling" price and multiplying the difference by the contract size of the particular currency pair and the number of lots traded.
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Example 1:
"bought" 1 lot of General Motors (GM) at 3.30 price
"sold" 1 lot of General Motors (GM) at 3.78 price
Calculation:
("selling price" - "buying price") * contract size * number of lots = realized profit/loss
(3.78 - 3.30) * 1,000 * 1 = + USD 480.-
"Selling" to profit from the expected price decrease ("Going Short")
If the client wishes to speculate on CFD's believing that the price will weaken in the future, then the client should "sell", "x" number of lots of CFD (each lot representing 1,000 shares) as he/she wishes and as the equity of his/her trading account allows. This "entry" trade is called "Going Short".
If price depreciates in the future, the client can "close" the trade, with a profit, by "buying", "x" number of lots of a particular CFD. The profit resulted from the particular "closed" trade is calculated by subtracting the "buying" price from the "selling" price and multiplying the difference by the contract size of the particular currency pair and the number of lots traded.
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Example 2:
"sold" 3 lots of General Motors (GM) at 3.78
"bought" 3 lots of General Motors (GM) at 3.30
Calculation:
("selling price" - "buying price") * contract size * number of lots = realized profit/loss
(3.78 - 3.30) * 1,000 * 3 = + USD 1,440.-
Note: In the two examples above, in cases where the price of Forex currency pair moves in the opposite direction than expected, the realized profit shown above becomes a loss.
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Languages
EUR 1.00%
GBP 0.50%
CHF 0.25%
JPY 0.10%
USD 0.25%
AUD 4.00%
CAD 0.25%
NZD 2.50%