Monthly Archives: September 2022

Dear Client, Warmly reminds you that the component stocks in the stock index spot generate dividends. When dividends are distributed, VT Markets will make dividends and deductions for the clients who hold the trading products after the close of the day before the ex-dividend date. Indices dividends will not be paid/charged as an inclusion alongContinue Reading

Understanding leverage trading What is leverage in forex? Leverage trading is a way to increase your exposure to market forces when you deal in foreign currency pairs. The forex market works according to laws of risk and reward — the greater the risk, the greater the potential reward. Therefore, the higher the leverage rate, theContinue Reading

Understanding pips in forex Pips in forex are the incremental price movements of currency pairs on the foreign exchange market. The term is an acronym for “price in percentage” or “percentage interest point”. When the price of a currency pair moves up or down, the extent of this movement is measured in pips, which areContinue Reading

Key advantages of forex trading As traders learn more about the forex market, and as they start to use the tools and features of their platform in an effective way, they can begin to realise a number of genuine advantages of forex trading. It’s important to remember that advantages are not guarantees, and there isContinue Reading

How to trade forex: A beginner’s guide Getting started in the forex market can be daunting, and traders may feel unsure of how to grow their understanding and develop their skills. Following a few simple steps can help traders to begin, although all would-be forex traders should recognise that this is a gradual process —Continue Reading

Understanding forex future contracts A forex future contract — also known as a currency future because it involves the relative values of international currencies — is a method of trading in the foreign exchange market. Traders essentially agree to complete a transaction, purchasing an amount of one foreign currency in exchange for an equivalent amountContinue Reading

Understanding forex options: options explained A forex option is a derivative — in other words, its value is derived according to data taken from the forex market, including the real-time currency exchange rates and the forecasted changes. When traders use FX options derivatives, they are entering into a contract that enables them to buy aContinue Reading

Understanding spot trading Spot trading involves a real-time assessment of current prices in the foreign exchange market. When an individual makes a spot trade, the value of the currencies they are working with is based on these real-time price movements — i.e., the currency value at the exact moment a trade is made. As forexContinue Reading

Understanding FX forwards An FX forward is a method of trading on the forex market. To use a forward, the trader enters into a contract to execute the position at a predetermined rate once the contract reaches its expiration point. This enables traders to set a price for future trade and then speculate on futureContinue Reading

Understanding forex swaps What are swaps in forex? A swap in forex trading occurs when two parties opt to loan one another an amount of a specific currency. Party A will loan a designated amount of one currency to Party B, and Party B will loan an equivalent amount of a different currency back toContinue Reading