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Trading Basics |
The Basics
PIPTRADE is the only platform on the market which enables clients to see and trade with both the traditional trade size and the tick value.
In General, Spread Trading gives you the opportunity to take a position on the movement of a financial market. If you think a product is going to rise, then BUY the product and close the trade later at the higher price and make a profit from the difference. With Spread Trading you can also SELL the product if you feel the market is going down and close the trade later after the price has decreased, profiting again from the difference in price. It is as simple as that. However, if the market goes down after you had a BUY trade you would incur losses on the trade. The uniqueness of Spread Trading is that you can actually choose the SIZE of the trade per tick, as well as the amount you want to risk per trade. This, combined with being in full control of your risk at all times, enables you to very easily manage your trades and to benefit from a limited downside and unlimited upside. |
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Our general aim is to make investing into the capital markets as straightforward as possible for every trader, whatever their level of experience. We focus on providing an easy-to-use trading platform and delivering quick access to tools and information that our clients need to make their trading decisions.
Basics All of our products have 2 prices associated with them. There is a BID price or the lower price and an ASK price or the higher price.
These prices change as the market moves up or down. All of our prices are transparent and based on the actual market prices provided by leading exchanges and internationally recognized liquidity providers. Anytime a price moves up or down the smallest unit of measure is called a “pip” or a “tick”.
With PIPTRADE’s unique trading system , you choose either the Trade Size or the Tick Value.
If you think the product you want to trade is going to rise you "buy" using the ASK price, or if you think the market is going to fall you "sell" using the Bid price. Each position you take is called a "trade". In order to realize a profit or limit a loss you must close your position at the market price.
PIPTRADE takes the price of the product and adds a small "spread" to that price. The spread is the difference between the sell and buy price and is the only "mark-up" that PIPTRADE makes on a trade. All PIPTRADE prices are derived from the actual markets and derived from internationally recognized exchanges and liquidity providers.
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Example of Spread Trading For example for Oil a pip is 0.01 if the price of Oil moves from 40.01 to 40.06 the price went up 5 pips. When trading with PIPTRADE you are allowed to choose the value per point. So if you were to trade Oil and you wanted to trade US$10 per point if you Bought Oil at 40.01 and Sold Oil at 40.06 you would have made 5 pips and made US$50 on this trade.
Example of Margin Trading Instead of selecting to trade a certain amount per tick , you can trade in a similar way to more traditional margin by choosing a trade size. For example, you can choose to trade 1,000 barrels of Crude oil. Using the example above you buy at $40.01 and sell later at $40.06. As the trade is leveraged, your loss would be equivalent to your profit / loss you would realize if you physically traded 1,000 barrels. So, as the price of Oil has risen by $0.05, you made $0.05 profit on each barrel. Your trade size was 1,000 barrels and so your profit is $0.05 X 1000 = $50. |
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Whichever method you prefer, trading with PIPTRADE is quick and simple. You choose the product, you choose how much you want to invest per point, (or the trade size), and then either buy or sell the product.
Trading with PIPTRADE offers the opportunity to make large returns for a small initial outlay. Of course, since the returns are high, it also carries a high degree of risk.
Initial OutlayWith PIPTRADE, the initial margin depends on the type of account you are opening. For a mini account this is $50, for a standard account it is $750 and for a premium account it is $2500. You can take on various positions simultaneously as long as there is enough margin after covering the maximum potential loss in the open positions.Taking positions on PIPTRADEAt the time of any trading decision made to buy or sell, the customer must have sufficient margin funds as collateral for that purchase or sale in their account. You can learn more about margins here.
If the customer does not have the required amount of funds in his account at the time of the trade, they will be unable to take this position.
The PIPTRADE platform automatically lets you know the margin requirements before you make the trades so you can just decide on whether or not to place the trade.
A key advantage with PIPTRADE is that the maximum you can lose is the amount of capital you have as margin. This means that there is no negative margin. This is a huge benefit to investors as you get all the upside of margin trading with limited downside.Why would PIPTRADE offer this?PIPTRADE conducts this type of operation for the same reason the bank does.
PIPTRADE takes the price of the product and adds a small spread to that price. The spread is the difference between the sell price and the buy price and is the only “mark-up” that PIPTRADE makes on the trade. This makes it simple and transparent to both PIPTRADE and the client. By allowing up a 300:1 leverage the client has complete flexibility in managing their trades.
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