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Foreign Exchange
Foreign exchange market is the world's largest financial market, and the participants include banks, companies, financial institutions and retail investors. Besides,
the foreign exchange market is also the most liquid financial market in the world. The average daily trading volume of the global foreign exchange market is approximately
$5.1 trillion (according to the data provided by the Bank for International Settlements in April 2016), showing rapid growth year after year. Under such an enormous
trading volume, no individual institution can completely control the market trend, and it is the fairest and most transparent trading market in the world. Investors can immediately trade currencies based on rapid market changes, thereby attracting large quantities of investors to invest in the foreign exchange market.
Product
Bid price
Seller
Highest
Lowest
EURUSD1
138981
139161
139971
13876
AUDUSD0
716740
717030
717400
71570
USDJPY
108.965
108.991
109.062
108.823
GBPUSD
1.28713
1.28742
1.28864
1.28708
NZDUSD
0.67632
0.67659
0.67781
0.67541
Features
Trade 24 hours a day, 5 days a week
One of the markets with the largest trading volume in the world; high liquidity
Up to 100x leveraged margin to increase capital utilization rate
Can be held or traded in different market trends
Examples of forex CFD trading:
Example 1: Buy 1 standard lot of EUR/USD CFDs (the contract size is 100,000) to long the EUR/USD exchange rate.
Buy/long 1 standard lot of EUR/USD contract at the bid price of 1.13330
The leverage ratio set by the account is 100:1, that is, the initial margin is required to be 1% of the contract value.
Close 1 standard lot of EUR/USD contract (sell/short) at the offer price of 1.13830
1 x 100,000 x 1.13330 = US $113,330 (contract value) (the contract is valued in quoted (RHS) currency)
US $113,330 x 0.01 = US $1133.30 (initial margin). CBF sets the margin ratio as US $1,000/lot
(1.13830 - 1.13330) x 1 x 100,000 = US $500.00 profit
Example 2 - Sell 1 standard lot of EUR/USD CFDs (the contract size is 100,000) to short the EUR/USD exchange rate.
Sell/short 1 standard lot of EUR/USD contract at the offer price of 1.13450
The leverage ratio set by the account is 100:1, that is, the initial margin is required to be 1% of the contract value.
Close 1 standard lot of EUR/USD contract (buy/long) at the bid price of 1.13850
1 x 100,000 x 1.13450 = US $113,450 (contract value) (the contract is valued in quoted (RHS) currency)
113,450 x 0.01 = US $1,134.50 (initial margin). CBF sets the margin ratio as US $1,000/lot
(1.13850 - 1.13450) x 1 x 100,000 = US $400.00 loss