Foreign exchange (FX) futures (OTC) are offering investors as well as risk managers opportunities to get benefits from market fluctuation .AFB customer's benefit from dealing anonymously in a fully transparent market, where large and small customers have equal access to the same prices and same liquidity with a very low margin requirement and superb trading conditions
AFB offers 6 FX Futures (OTC) that covers major currency pairs and attracts both buys and sell investors including hedge funds, financial institutions and individual investors.
Benefits of trading FX Futures (OTC):
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Market Spread (very tight spreads)
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Low commissions fees
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Open, fair and anonymous currency trading
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Low margin requirements
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Very fast and liquid market.
Specification:
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Product Name
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Symbol
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Contract Size
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Spread
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Order
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Minimum Fluctuation
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Margin
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Months Traded
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Trading Hours (GMT)
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European Currency
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EC
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125,000 EUR
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Market Spread
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5 pips
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1 pip = $12.5
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1,000 USD
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Mar Jun
Sep Dec
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Sun Open: 21:00 – 21:00 Reopen: 22:00 – 21:00 Fri Close: 21:00
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British Pound
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BP
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62,500 GBP
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1 pip = $6.25
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1,000 USD
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Swiss Franc
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SF
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125,000 CHF
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1 pip = $12.5
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1,000 USD
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Japanese Yen
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JY
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12,500,000 JPY
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1 pip = $12.5
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1,000 USD
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Australian Dollar
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AD
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100,000 AUD
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1 pip = $10
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1,000 USD
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Canadian Dollar
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CD
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100,000 CAD
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1 pip = $10
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1,000 USD
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Examples:
A client believes that the EURO Future Contract is due to rise in the future against US dollar, to get benefit of the situation the client intends to buy EURO Future Contract
EURO is quoted at 1.3580 – 1.3581, the client buys 8 lots at 1.3581, the client requires minimum deposit of 1000 $ for each lot.
EURO prices rise to 1.3625 – 1.3626, the client is satisfied with his profit and wants to close his positions, he therefore sells 8 lots of EURO Future at 1.3625, so the client has made profit of 44 points (1.3625 - 1.3581 = 0.0044) . To calculate the profit we will do the following:
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(Close price - open price) – (1.3625 - 1.3581 = 44 points)
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(points * pip value * number of lots) - (44 * 12.5 * 8 = 4400 US$)
So the gross profit for the previous transaction is 4400 $.
*Commission charges are NOT included in the above calculations