The Basics
Trading Margins with HY Markets gives you the opportunity to take a position on the movement of a financial market. If you think a product is going to rise, then you BUY the product and close the trade later at the higher price and make a profit from the difference. One of the benefits of margin trading is that you can also SELL the product if you feel the market is going down and close the trade later after the price has decreased, profiting again from the difference in price. It is as simple as that. However, if the market goes down after you had a BUY trade you would incur losses on the trade. With HY Markets you choose the SIZE of the contract you are trading, as well as the amount you want to risk per trade. This enables you full control over your trade and gives you a limited downside and unlimited upside.
Our general aim is to make investing into the capital markets as straightforward as possible for every trader, whatever their level of experience. We focus on providing an easy-to-use trading platform and delivering quick access to tools and information that our clients need to make their trading decisions.
Basics
All of our products have 2 prices associated with them. There is a BID price or the lower price and an ASK price or the higher price. You can SELL the product at the BID price or BUY the product at the ASK price.
These prices change as the market moves up or down. All of our prices are transparent and based on the actual market prices provided by leading exchanges and internationally recognized liquidity providers. Anytime a price moves up or down the smallest unit of measure is called a “pip” or a “tick”.
First you choose which product you wish to trade. If you think the product you want to trade is going to rise you "buy" using the ASK price, or if you think the market is going to fall you "sell" using the BID price. Each position you take is called a "trade". In order to realize a profit or limit a loss you must close your trade at a point in the future at the market price.
HY Markets takes the price of the product and adds a small "spread" to that price. The spread is the difference between the sell and buy price and is the only "mark-up" that HY Markets makes on a trade. All HY Markets prices are derived from the actual markets and derived from internationally recognized exchanges and liquidity providers.
Example
For example, you decide to trade Oil futures When trading with HY Markets you choose the size of the trade and the BUY or SELL, depending on whether you think the price will RISE or FALL. So, you think the price of Oil will rise so you take BUY position, of 1,000 barrles at the price of $75.00 per barrel. The price does go up, and you close your trade at $76.00 per barrel. The profit you make is $1000, ($1 per barrel price increase X 1,000 barrel trade size)
As you can see HY Markets is simple and easy. You choose the product, you choose the size of the contract to be traded and then either buy or sell the product.
Margin Trading offers the opportunity to make large returns for a small initial outlay. Of course, since the returns are high, it also carries a high degree of risk.
Initial Deposit
With HY Markets, the initial deposit required to activate an account depends on the type of account you are opening. For a mini account this is $50, for a standard account it is $750 and for a premium account it is $2500. For each account level the minimum amount to open a trade will be considerably less than the initial deposit and will vary from product to product, (for example, an FX trade on a mini account can be taken with $10). You can take on various positions simultaneously as long as there is enough margin after covering the maximum potential loss in the open positions.
Taking positions on HY Markets
At the time of any trading decision made to buy or sell, the customer must have sufficient margin funds as collateral for that purchase or sale in their account. You can learn more about margins
here.
With HY Markets the margin required for a trade is known as the Amount to Risk. This is the maximum possible a customer can incur on any one trade. If the customer does not have the required amount of funds in his account at the time of the trade, they will be unable to take this position.
A key advantage with HY Markets is that with the Amount to Risk system, the maximum you can lose is the amount of capital you have as margin. This means that there is no negative margin. This is a huge benefit to investors as you get all the upside of margin trading with limited downside.
Why would HY Markets offer this?
HY Markets conducts this type of operation for the same reason the bank does.
HY Markets takes the price of the product and adds a small spread to that price. The spread is the difference between the sell price and the buy price and is the only “mark-up” that HY Markets makes on the trade. This makes it simple and transparent to both HY Markets and the client. By allowing up a 200:1 leverage the client has complete flexibility in managing their trades.
