| Merits of Leveraged FX Trading |
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| [ Leveraged Effects ] |
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Utilizing leveraged FX trading, only a small margin deposit which is much smaller than the underlying value of the currency contract is needed to maintain a trading position. It should be noted that in the event of the market moving in the opposite direction relative to your open positions, big losses may incur.
With our company's service, 500,000 yen margin deposit, for example, can maintain by leverage an open position of US$ 100,000. A 'Buy' USD/JPY open long position can make a profit of 100,000 yen if yen's value in term of US$ devalues by 1 yen. |
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| [ Commission much Lower Than Foreign Currency Deposits ] |
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| In general, commission for foreign currency deposit is 50 sen to 1 yen for US$1 while Leveraged FX Trading ( i SECURITIES, for instance ) charges 3 sen as commission, ie. commission for leveraged FX trading is, on average, 1/10 of those charged by foreign currency deposit. |
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| [ Attractions of High Yield Currencies ] |
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| In the course of Leveraged FX trading, SWAP interest rates per annum occur for 'long' and 'short' positions. The interest rate per annum receivable or payable follow closely to the interest rate prevailing for each currency, and those who buy/sell currencies with higher interest rates in term of currencies with lower interest rates will determine the resultant interest rates structure. For example, if one bought a standard lot of USD/JPY ( US$ 100,000 ), one will receive interest each day overnight at 4.25% pa minus interest spread for the whole lot because US$ has higher interest rate or vice versa will have to pay interest per day for holding 'sell' USD/JPY position overnight. |
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| [ 24-hour Trading With No Maturity Date ] |
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| Foreign Exchange Market is regarded as a 24-hour market with no rest during trading days ; starting from Wellington in New Zealand with Tokyo, London and New York as the main market centers participating continuously in FX trading. Moreover, Leveraged FX Trading differs from Foreign Currency Savings Trading and Futures Trading in that it has no maturity date and can be extended indefinitely. |
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| [ Easy To Diversity Investment ] |
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| Diversification in investment means that the investment is allocated to different kinds of financial assets or instruments instead of concentrating on one particular financial instrument, eg : Leveraged FX Trading has British Pound, Euro, Swiss Franc, Australian dollar, Canadian dollar etc apart from USD and Japanese yen. Investors can choose suitable currency pairs to invest so as to diversify as well as attaining stable income. |
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| [ Easy To Access Information ] |
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| With the advancement of communications technology, investors nowadays can access useful information for analysis through internet, TV and newspapers in more or less the same way as FX traders. |
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| [ Ideal for Office Workers ] |
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| As the FX trading market is running 24 hours a day during trading days, the markets at London and New York (Japan late afternoon to next day's morning) are generally more fluctuating than the daytime trading in Tokyo and Asia. In view of the trading time, Leveraged FX trading is a very suitable investment for office workers. |
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| [ Open Positions Can be 'Long' or 'Short' ] |
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| In securities investment and foreign currency savings, investors have to buy at low and sell at high in order to make profits on differential and cannot sell without holding the related securities or currencies. On the other hand, investors in Leveraged FX trading can 'buy' or 'sell' irrespective of whether the related currencies are held or not ; consequently, profits are possible under circumstances of either JPY appreciation or depreciation. For example, if GBP/USD is forecast to fall, one can sell GBP/USD to hold an open short position, ie selling GBP to buy dollar. |
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| [ Trading Possible for Small Investment ] |
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| The initial investment requirement at i SECURITIES starts with JPY 100K and investors can trade 10K foreign currency for a margin of JPY 30K. |
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| [ Low Bid & Ask Spread ] |
| Our bid and ask spread for USD/JPY is 3 pips ( commission excluded ), considerably lower than those charged by banks. |
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