Just got the ikon group prodigy platform. I have had alot of help been able to change the demo monmey amount to 5000. So it is more realistic. Got my micro account also alot more tradeable currencies. Customer service wise they have been great very helpful. The platform so far seems basic but am shore thats just how it looks and is not how its is. Basic is better neway. If i doin my own research my self all i need is a buy and sell button.
But there is something i have not seen before when i go to buy and sell i have choice of which contract (i think) to use
So what is
A spot
option
ndf
They are my choice i know option or spot is what is normally done and the ndf seem like a contract agreed over a specific timescale.
Very unsure and any definitions of these would be good searching google now for meanings but good to speak to someone so i can get it right in my own mind.
Thanks guys look forward to your replies.
I will post what i come up with in meantime.
P.S If any one has used ikon group prododigy program be great to know what you thought
Non-deliverable forward - Wikipedia, the free encyclopedia This Wiki article should provide you with the info you need! Spreads and Slippage are what seperate good trading platforms from bad, but thats just my opinion! I wish you all the best!
So as i understanding a ndf is the same as normal currency trading but with a time limit. So you agree to settle your trade at this point in the future when ever that is usually 1 month to a year. If this is right what is the benefit? I can get stuck in a bad trade. I understand that i can put a counter trade on to cancel this out. But i see no reason to use it?
Do you trade ndfs what is the benefit and is my explantation correct thanks.
The longer the expiry date the wider the spread will naturally be on a CFD/NFD - if you buy a 12 month contract you wont have to pay roll over fee’s each night, which would be the case if you bought a daily contract and held it over night.
You need to decide how long you are anticipating that your trade will last, and open a contract for that period. Also, just because you have opened a 12 month contract you could also close it at any point within that period. The difference being that the 12 month contract will be more expensive to open than a daily contract due to the expiry date vs roll over costs.
cant see much benefit. maybe helps keep your finger away from cancel button if your plan is i will hold this position for a month. Am i miles off or is that the only benefit. I have read the wiki and tried to understand why to use ndf but i cant see a positive really nothing a normal spot doesnt give me.