What is Trading Products?
Online Trading is a form of financial instrument that allows you to invest on a global asset without purchasing the asset itself.
When you execute a trade on an asset in online trading, your goal is to profit from changes to its market price. Your profits are calculated as the difference between the asset price when you open a position, and the asset’s price when you close the position.
EFT Markets traders can boost their investments on individual assets by up to x200 using leverage. The use of leverage allows you to increase your market exposure and potentially earn higher profits with a smaller initial investment.
One of the big attractions of Online Trading is its simplicity. You can open a trade on an underlying asset either as a Buy or a Sell position.
BUY If you expect an asset price to rise open a BUY position.
SELL If you expect an asset price to fall open a SELL position.
An Example of a Trade
You buy USD 250 with Euros. After a week, you exchange the dollars back to euros, making a profit of $75.
How is this possible?
When you first bought the $250 a week ago, the USD market price was 0.9 EUR. Now, the USD market price is 1.2 EUR. This 0.3 price movement earned you $75.
You profited by following the basic market principle of buying the dollars at a low rate and selling them back at a higher rate. If you had leveraged your initial investment your profits would have increased in direct proportion to the leverage that you used.
$250 x 200 leverage = $50,000.
$50,000 x 0.3 price movement = $15,000
If you correctly predicted the market performance of the asset, you may make substantial profits, particularly if your trade is leveraged. If your investment does not succeed, you will only lose the funds allocated to that particular trade. You will never be subjected to any further debts or liabilities.
Why do Online Trades?
EFT Markets offers modern traders a low-cost investing environment, where fixed spreads have replaced old fashioned fees, commissions and hidden charges. When you trade online, you can follow every stage of your investment and see all your potential profits, losses and expenses at a single glance. EFT Markets operates a slimmed down online brokerage with few of the costs that were associated with the old style investment houses and stockbrokers. These savings are passed on to our traders.
Traders at EFT Markets have instant access to up to x200 leverage. The only condition is that you maintain a sufficient margin reserve in your trading account to cover your leveraged trades. Leverage allows you to multiply the volume of any trade and potentially increase your profits by the same proportion.
When you trade at EFT Markets you can open leveraged trades on nearly 1,000 financial assets such as forex, stocks, commodities and indices.