Hantec Markets sends orders directly from clients to our network of liquidity providers. This access to real-time market quotes and seamless trade execution without dealer intervention is what makes the platform truly STP.
Hantec Markets offer their clients Instant Execution, meaning that trades are executed as real-time market orders. These orders are filled at the best available price.
Hantec Markets works directly with multiple liquidity providers. When trading without a dealing desk, a trader is interacting directly with numerous providers in order to get quoted the most competitive bid and ask prices.
Hantec Markets offer tight spreads starting from 1.2 pips with no commission and a range of over 40 cross currency pairs to trade.
Forex is the largest (in volume) financial market in the world, with the equivalent of USD 5 trillion traded daily. Such liquidity, especially in the major currency pairs of the foreign exchange markets, helps sustain price stability and exchange.
Margin trading enables investors to hold assets with a higher notional value than the capital held in their accounts. However, this does involve more risk and substantial losses are possible if the market moves against the trader’s position.
Forex is a 24-hour market – you can trade whenever you want, from anywhere in the world and across multiple trading platforms.
As a volume-based brokerage, our daily trading volume allows us to reduce the transaction costs associtated with your trading.
We offer leverage up to 200:1. Leverage can magnify gains, but equally magnify losses. Therefore trading on margin must be managed responsibly.
With Forex trading you have the ability to limit your exposure and manage your positions through a number of order types.
Foreign Exchange Trading is the speculation to the relative strength of one currency against another.
All currencies are traded in pairs, with each currency having a 3 letter identifier, i.e. GBP for the British Pound, USD for the US Dollar, EUR for the Euro and JPY for the Japanese Yen, etc. The British Pound versus the US Dollar is therefore called GBPUSD, the Euro against the US Dollar is called EURUSD, and the US Dollar against the Japanese Yen is called USDJPY.
Base, Quote & Counter Currencies Explained
The first currency mentioned in a currency pair is called the ‘Base’ currency, while the second currency is called the ‘Quote’ or the ‘Counter’ currency.
|Base Currency||Quote Currency||Exchange Rate|
In this example the exchange rate specifies how much of the quote currency, in this case USD, you have to pay to obtain one unit of the base currency. In this example you would need to pay 1.22325 US Dollar to get 1 Euro.
The minimum rate fluctuation is called a pip, or a point. 1 pip is 0.0001 for all other currencies than JPY denominated currencies, where a pip is just 0.01. As Hantec Markets offers fractional pips, we show our prices with 3 digits after the point for JPY denominated currency pairs (0.001), and 5 digits for all other currencies (0.00001).
When quoting an FX currency pair price, it always consists of a Bid (Sell) and Ask (Offer/Buy) price.
|Base Currency||Bid Price||Ask Price|
Currency Majors in Forex Trading
The most traded currencies are called ‘majors’ and are generally the currencies of the biggest and most settled economies in the world, with stable governments and established central banks that closely scrutinise their domestic economies. These include the US Dollar, the Euro, the British Pound, the Japanese Yen and the Swiss Franc.
As such trading Forex always involves two currencies, referred to as a currency pair. Forex traders always have the potential to take advantage of market movements by buying or selling one currency against another. If one currency is strengthening, it is always relative to that of another currency. If the EURUSD is strengthening, it is the Euro (the base currency) that is strengthening relative to the US Dollar (the quote currency).
A Forex trader will look to buy a currency pair (long position) if they expect it will increase in value so they can sell it again at a higher price. Traders believing the price of a currency pair will depreciate will take out a short position. In this case they set out by selling a currency pair in the anticipation they can buy it back at a lower price in the future.
The Forex Market
The Forex market is the biggest and most liquid market in the world. There are however a number of factors influencing the liquidity available for a particular currency.
Traders are to some degree able to influence the level of risk they want to expose themselves to. By placing a limit order on an open position you can ensure the position is closed once a certain price is reached; by placing a stop order your position will be liquidated at your chosen price level. However, in volatile market conditions, market gaps may occur in which case there might not be any prices available to execute your order and your order will be executed at the next available price. As such while you can take some precautions, forex trading does carry an intrinsic risk.
Online forex trading has become increasingly popular in recent years, and the growth in forex trading signals providers and forex trading robots has led to a significant increase in automated forex trading programmes. Forex online brokers offer fx traders the opportunity to download an online fx trading platform and open a forex trading account to test drive their fx trading strategies.
To complement their currency trading systems many brokers also offer trading education packages that teach new fx traders all they need to know about foreign currency trading.
The rate at which you can sell the base currency, in our case it’s the Euro, and buy the quote currency, i.e the Japanese Yen.
The rate at which you can buy the base currency, in our case the British Pound, and sell the quoted currency, i.e. the Japanese Yen.
The difference between the Bid and the Ask prices.
The value of one currency expressed in terms of another. Its fluctuation depends on numerous factors including the supply and demand on the market and/or open market operations by a government or by a central bank.
Usually contract size is based on a lot system, and for most currency pairs 1 lot is 100,000 units of a base currency.
Minimum rate fluctuation
Straight-through processing (STP) enables the trade process for capital market transactions to be conducted electronically without the need for manual intervention.
Contract For Difference is a an agreement between seller and buyer, where seller is stipulated to pay the difference between the opening and closing prices of an asset.
Sign up to receive the latest market research and analysis from Hantec Markets directly to your inbox for 30 days
Forex and CFDs are leveraged products which can result in losses greater than your initial deposit. Therefore you should only speculate with money that you can afford to lose.
Please ensure you fully understand the risks involved, seeking independent advice if necessary prior to entering into such transactions. Please click here to view our Risk Disclosure.