UFXBank Trader - User Manual

Forex (FX) Basics

The foreign exchange (currency or FX) market refers to the market for the trade of currencies. Transactions in this market typically involve selling a quantity of a certain currency in order to purchase a specific sum of another currency. The FX market is the largest financial market in the world, and includes trading between large banks, governments, retail brokers and other institutions. The average daily volume in the global forex and related markets is continuously growing and was last reported to be over $5 trillion in September 2008.

While currencies have been traded since the beginning of the financial markets, on-line retail trading has only been active since mid 90's. In online retail trading, few or no transactions actually lead to a physical delivery of the currencies and all positions will eventually be closed. The market makers offer high amounts of leverage - in a typical 100:1 scenario, the client absorbs all gains and risks associated with controlling a position worth 100 times his capital.

Currencies’ exchange is quoted in pairs (or Symbols), for example EURUSD (Euro vs. United States Dollar). The first currency is the Base Currency and the second currency is the Non-Base (or Quote) currency. The Exchange rates (or FX rate) of a symbol defines how much one currency is worth in terms of the other. For example: a EURUSD rate of 1.4513 means that 1 Euro is worth 1.4513 in US Dollars. The rate is commonly stated as either ASK price (the price to buy the Base currency and sell the other) or BID price (the price to sell the Base currency and buy the other). A trader who is expecting the Euro to strengthen against the US Dollar (or in other words, expecting the cross rate of The EURUSD to move up) will open a Long position (buy the Base currency and sell the Non-Base currency) to express this expectation.

Forex Market Characteristics

The foreign exchange market is a unique financial market because of:

• Trading volumes.
• Extreme liquidity of the market.
• Large number of traders in the market.
• Geographical dispersion.
• 24/7 trading.
• Low margins of profit compared with other markets of fixed income (but profits can be high due to very large trading volumes).

Spot (Day Trading) Deal

A spot transaction is a trading tool that represents an immediate exchange between two currencies, has a short time frame, involves cash but interest is not included in the agreed-upon transaction. Market makers are compensated for allowing clients to enter the market, commonly by setting a spread between the Ask and the Bid price for all traded symbols. In a common example, EUR/USD, the spread is typically 5 pips (percentage in points) or 5/100 of a cent in this example. Thus prices are quoted with both Ask and Bid prices (e.g., Buy EUR/USD 1.4513, Sell EUR/USD 1.4508). Spot deal, by its characteristics, is subject to rolling commission when the trader wishes to carry it for the next trading day.

Home Page

After entering UFXBank site, you will automatically by redirect into the site’s home page with the following sections:

Main Navigation Bar – Easy to access navigation tool.

Quotes Box – Real time trading quotes for the selected symbols showing:

• Ask price - The price to buy the left currency of the symbol and sell the other.
• Bid price - The price to sell the left currency of the symbol and buy the other.
• Market direction arrow - Represent the last market trend (Green if market went up, Red if market went down).

News Box – An up-to-date financial news feed with ability (click on a news item) to open a new window with detailed information.

Links to Login page – enter your user name and password.

Link to Registration page – create your account at UFXBank.

Sign-In and Sign-Out (Login and Log-Out)

To start trading, you must first identify yourself using the Sign-In page. Enter your Username and password and press “Sign In”. The secured identification process will be executed and you will be automatically redirected to the Trading page.

To Sign-Out, click on the Sign-Out link in the upper right corner of each page.

Main Navigation Menu

• Trading – Direct access to the trading page.
• Deposit – Direct access to deposit.
• My account – User’s private area (accessed only after login) with ability to change settings, withdraw request and reports’ portal.
• Learn – Forex training and info center.
• Tools – On-line charts, market reviews and more.
• Customer service – Support including this document in the Help page.
• About – Company background.

Trading Page

The Trading page is tuned easily monitor the market opportunities, create new deals, mange your open positions, track your real time account state.

In the following sections, you will learn about the trading page, how to create a new Day Trading deal (also known as Spot) and to view its performance. You will then modify your open deal and lastly, close the deal.

Status Bar

Shows your account’s real time state in terms of:

• Balance – Total balance of the account.
• P&L – Total Profit /Losses of open deals.
• Used Margin – Percentage of your balance used for backup your open deals.
• Available Line – Total amount available to open new deals.

Quotes Box

Real time trading quotes for the selected symbols showing Ask price (the price to buy the left currency of the symbol and sell the other), Bid price (the price to sell the left currency of the symbol and buy the other) and a market direction arrow represent the last market trend (Green if market went up, Red if market went down).

Clicking on Ask/Bid rate will set the Open Deal Ticket to the selected symbol (I.e. click on Ask will set the Buy Currency to the left currency of the symbol and the Sell Currency to the other).

Open Deal

In order to easily open a new deal you should only select: Currency To Buy, Currency To Sell, Deal Amount, and Stop Loss Amount. Then, you click the “Freeze”“Confirm” to execute the deal. Please note, that the “Freeze” ability enables you to execute a deal in apreferred rate even in a hectic market conditions but is subject to system approval.

Examples:

Buying – You are expecting the Euro to strengthen against the US Dollar causing the cross rate of The EURUSD to move up, you wish to open a deal to express this expectation. Therefore, you will open a new deal with currency To Buy: EUR, currency To Sell: USD, Deal Amount: 50,000 USD and a limit to your loss as Stop Loss: 1,000 USD. Click on “Freeze” to freeze the rate and “Confirm” to execute the deal.

Selling – You are expecting the Japanese yen (JPY) to strengthen against the EURO causing the cross rate of The EURJPY to move down, you wish to open a deal to express this expectation. Therefore, you will open a new deal with currency To Buy: JPY, currency To Sell: EUR, Deal Amount: 5,000,000 JPY and a limit to your loss as Stop Loss: 100,000 JPY. Click on “Freeze” to freeze the rate and “Confirm” to execute the deal.

Open Positions Table

Shows your open deals details (Deal ID, Open date, Buy and Sell amounts, Open rate, Market rate, Stop Loss rate, Take Profit rate and real time Profit and Loss) with ability to Modify and Close the selected deal. Please note that each deal has a limited life time (“Rolling until”) sets by default and a deal that carried from one trading day to another is subject to rolling commission.

Modify Deal

Just click on the “Modify” icon locate on the left side of the deal row in the “Open positions” table.

You can modify a deal by setting new definitions for Stop Loss or Take profit:
Take Profit – Setting/Updating the exact point in which you want the system to close your deal at profit. In order to set it you have the abilities to define it by specific rate, distance (percentage) from the open rate or exact amount.
Stop loss - Updating the maximum loss you are willing to take in this specific deal. In order to set it you have the abilities to define it by a specific rate, distance (percentage) from the open rate or exact amount.
“Confirm” button – To send your change for approval.

Close Deal

Just click on the “Close” icon located in the left side of the deal row in the “Open positions” table.

In order to easily close your deal you should only click the “Freeze” button that enable you to hold a rate for 3 seconds and “Confirm” to close the deal. Please note, that the “Freeze” ability enable you to close a deal in a preferred rate even in a hectic market conditions but is subject to the system approval.

Settings

In this section you can update your personal details, change password, change secret hint (used to strengthen your ability to retrieve your password in case you forgot it), and change your preferred “Quotes box” symbols list. The move between the setting sections is done through the links in the upper right area of the settings page.

Personal Information setting

Enable you to change your contact information. Update your contact details and submit your changes.

Change Password

Enables you to change password. Enter your current password (to reinforce security policy), type a new password (retype it for confirmation) and submit your changes.

Change Symbols

Enables you to change your “Quotes box” symbols list. Select your preferred symbols from the left list (using the “>>” to select a symbol and the “<<” to remove a symbol), manage the symbols order (using the up and down arrows) and submit your changes. In order to retrieve default symbols list click on “Set Default”.

Reports Portal

Closed Positions Report

Select “Dates” range and click “Submit” to see your closed deals at this dates range.

Account Statement Report
Select “Dates” range and click “Submit” to see your all monetary events at this dates range.