Many people think Forex brokers only deal with currencies.
Although it used to be true, as of the 1990’s, other asset classes were introduced by retail traders through the use of CFDs.
So what is a CFD?
A Contract for Difference (CFD) is a contract between a buyer and a seller specifying that the seller will pay the difference between the purchased price of an asset and its value at the contract closure.
If the difference in price results to be negative the buyer pays.
CFD’s can be traded in lots or a fraction of a lot, and usually, the value of a lot matches the current market price of the asset. Lot sizes can depend on the asset and their respective contract sizes.
EagleFX’s Index Portfolio
EagleFX offers its traders eleven indices from different countries to choose from:
USA: SPX500, NAS100, US30
Hong Kong: HKG50
The wide variety of indices and regions allow EagleFX traders to profit from available liquidity on markets around the globe. To give an example, traders can hedge using the SP500 or another index to protect open positions on the GER30 or UK100 or start a new position during the Asian session.
This is possible because, while European markets are closed, the Asian session is active in the early morning. Of course, any EagleFX Asian trader can do the opposite and start to cover or initiate a position when the European session is open.
Large Tier-one Liquidity pools and Top-Notch Order Routing Technology
EagleFX’s Tier-One partners, Deutsche Bank and Barclays guarantee tight spreads and low slippage because its order flow technology is designed to optimally combine both polls into a very efficient price stream and deliver the best bid and ask prices at maximum speed.
Tighter spreads are important for a trader, and more so for active traders scalping short-term movements. However, what is even more critical to a trader is slippage, as this happens during high periods of market volatility and can go as high as four pips on slow brokerages.
EagleFX technology and top tier-one liquidity providers guarantee of a very low slippage under all kinds of volatility conditions.
EagleFX traders benefit from the 100x leverage on their trades. That permits going down to five-minute or even one-minute timeframes and profit from very small movements of the index markets. Active traders can enhance the basic profit up to 100x if they use a system designed to profit from short-term price swings.
MetaTrader 4 Platform
EagleFX delivers the de-facto standard of the Forex Industry MetaTrader 4 trading platform. MetaTrader is a fast and straightforward professional-grade trading station with plenty of features designed to help traders analyze the market and send buy and sell orders to the markets.
MT4 allows multiple ways to create an order:
- Fast one-click order routing
- Order creation from a chart
- Order window to create complex orders: Limit, Stop and bracket orders
Line, OHLC (bar), and Candlestick charts are available to the market analyst. Also available are the most used technical studies and indicators. In addition to all that, MT4 charts can incorporate Expert Advisors (EAs) to automate trading. These EAs can be tested and their parameters optimised using MT4’s Strategy Tester.
When using the MT4, safety is guaranteed, as all data exchange between the MT4 and EagleFX servers is encrypted, and additionally, MetaTrader supports the use of digital signatures.
Throughout this article, it is evident that EagleFX is a serious option for traders willing to trade indices – thanks to the wide range of indexed assets, the technology behind order routing and its top-class liquidity partners. All of that ensures hassle-free, low-cost, index trading.