In this article, we will talk about the Infinite Leverage feature offered by AximTrade, a forex and CFD broker.

The page explains that Infinite Leverage allows traders to trade with larger positions than their account balance would normally allow.

This means that traders can potentially make larger profits, but also carry a higher risk of losses.

We will describe how Infinite Leverage works, how it differs from traditional leverage, and the risks and benefits of using this feature.

What is AximTrade’s “Infinite Leverage”?

AximTrade’s “Infinite Leverage” is a trading account that allows traders to increase their trading leverage up to 1:∞.

This essentially means that traders can trade with a larger position size without depositing additional funds into their trading account.

With infinite leverage, traders can open positions with larger volume than their account balance would normally allow.

This can potentially result in higher profits, but also increases the risk of larger losses.

Therefore, it is important for traders to understand the risks involved with infinite leverage trading and to manage their risk effectively.

AximTrade offers the infinite leverage feature on a variety of financial instruments, including forex, commodities, and indices.

The company provides traders with educational resources and risk management tools to help them make informed trading decisions.

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How to open Aximtrade’s Infinite Leverage account?

The website for AximTrade’s “Infinite Leverage” does not provide specific information on how to open an account with infinite leverage. However, based on information provided on the main AximTrade website, it appears that the process for opening an account is relatively straightforward.

To open an account with AximTrade, traders can follow these general steps:

1. Visit the AximTrade website and click on the “Open Account” button.
2. Fill out the registration form with personal information and contact details.
3. Submit the required verification documents, such as a passport or driver’s license, and proof of address.
4. Choose the account type and funding method that suits your trading needs.
5. Once the account has been approved, log in to the trading platform and start trading.

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Try Aximtrade’s Copy Trading service

The Copy Trading service provided by AximTrade allows users to copy the trades of experienced traders.

To start copying trades, users need to open a trading account and select a strategy provider.

AximTrade provides users with a range of information about strategy providers to help them make informed decisions.

The merits of copy trading include the ability to benefit from the knowledge and experience of successful traders and the potential to generate profits with minimal effort.

The Copy Trading service provided by AximTrade works by allowing users to automatically copy the trades of experienced traders. Here is a step-by-step breakdown of how the service works:

1. Users need to open a trading account with AximTrade and select the Copy Trading service.
2. Users can browse the list of strategy providers on the platform and view detailed information about each provider, including their trading history, success rate, and risk management strategy.
3. Once a user has selected a strategy provider, they can then set the parameters for copying trades, such as the amount of capital to be allocated for each trade.
4. The system will automatically copy the trades made by the selected strategy provider in real-time.
5. Users can monitor the performance of their account and adjust the parameters of the copy trading service as needed.

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What is the foreign exchange market?

The foreign exchange market is the largest financial market in the world, with a daily turnover of up to 5 trillion US dollars.

As the main currency exchange mechanism, the foreign exchange market not only provides basic services for global commerce and trade, but also provides various trading opportunities for those who want to invest in the foreign exchange market with such a huge transaction volume. Forex traders can buy or sell different currencies 24 hours a day, five days a week, and by using leverage (increasing notional volume), they can speculate on global currency flows and market volatility.

The foreign exchange market, often referred to simply as “foreign exchange” or “FX”, is a global, decentralized, over-the-counter currency trading financial market.

Global Market

This is a global market and all the quotes you see are the relative value of one country’s currency relative to another. Global economic and political events drive these markets, which in turn affect the relative value of the currencies of the countries involved, which in turn changes the value of the currency pair.

Decentralized market

A decentralized market means that the forex market, unlike the stock market, does not have a centralized exchange. Instead, financial centers around the world collectively form a large 24-hour trading network of different types of buyers and sellers, closed only on weekends.

OTC

The foreign exchange market is not controlled by any central authority, and there is no clearing house to guarantee transactions. Brokers and traders negotiate trades with each other directly over electronic networks. This market, where traders negotiate prices with each other, is called “over the counter.”

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Forex is the most popular market in the world

For active traders, the foreign exchange market is not much different from other trading markets such as stocks, commodities or fixed income markets. The foreign exchange market is also a place for buyers and sellers to trade, but the commodities bought and sold are currency pairs. A currency pair could be EURUSD, USDJPY, GBPUSD, EURGBP, or a combination of many different currencies.

Different currency combinations represent the value of one currency against another, and this relationship is represented by a price. In the foreign exchange market, combined with the current situation and expectations of the economy and politics of the two countries, the price of a currency pair is actually the market expectation value of one currency measured against another currency. From the perspective of stocks, the price mechanism of currency pairs is similar to that of stock prices.

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Forex market compared to other markets

The daily trading volume of the stock market is about billions of dollars, while the daily trading volume of the foreign exchange market is as high as 5 trillion U.S. dollars. Participants in the foreign exchange market include major banks, hedge funds and other financial institutions, global corporations, and individual traders. Most foreign exchange transactions are the result of currency exchanges involved in everyday trade around the world. The huge daily trading volume of the foreign exchange market provides endless trading opportunities, and at the same time allows traders to make more diversified investments through the global foreign exchange market.

What factors play a key role in foreign exchange trading? How does it compare to stocks? Let us illustrate with an example. Suppose a country has low and stable inflation or bank interest rates, its economic output growth is strong, and its politics are very stable. One can expect the national currency to remain strong relative to another national currency whose fundamentals are not so good.

Let’s take another stock example for comparison. Assuming the domestic and global economy is strong, inflation is not severe, market competition is not eroding the market share of the company’s products, demand for products is stable, and worker productivity is high, then you can expect that, compared to other fundamentals, the situation is not good For the company, the company’s stock will remain strong.

Similar to stocks, the short-term trend of foreign exchange currency pairs will be affected by some other factors, including technical analysis, short-term supply and demand, seasonal capital flow patterns, current prices, etc. These factors are generally in dynamic changes Among them, it causes the currency price to rise or fall in real time. Open a Aximtrade account now and start your foreign exchange trading journey.

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What is affecting the price of Forex market?

Now that we have introduced you to the participants in the foreign exchange market, we will now continue to introduce you to the common reasons for price changes in the market.

Remember that the major players in the market contribute the vast majority of liquidity in the market, and at the same time, it is the flow of money from one currency to another that causes price fluctuations and turns into market trends. The reason for the actual fund flow may be related to real speculative needs, such as hedging by customers for protection purposes, or the need to buy assets, but people’s expectations also account for a large part of the reason, that is, the interest in the market. Expectations of changes in capital flows.

Changes in GDP (gross domestic product, “gross domestic product”), inflation, interest rates, budget and transaction surpluses/deficits, and changes in other macroeconomic conditions may cause market participants to have expectations for changes in capital flows.

News Events That Can Trigger Volatility:

• Gross Domestic Product (GDP)
• Interest rate
• Employment/Unemployment Status
• Trade surplus/deficit
• Force majeure event

Non-farm payrolls and the unemployment rate

The most market-focused news is the U.S. non-farm payrolls and unemployment rate, the release of which could bring a lot of volatility to the market. Watch the webinar below to learn more about why this is an important news event.

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Economic calendar

So how do we stay on top of these potential market drivers? Although we can’t predict world events, we can use the economic calendar to monitor which important news releases will be made in the next few days, weeks or months.

The economic calendar lists publicly released news and events in a particular country, which means that people around the world can get the same news at the same time. While this is a major plus for retail traders like us, it’s good to realize that banks also have a major advantage – they can see where money is going (and out of it) by seeing their clients’ order flow.

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Market sentiment

Market sentiment can be used by both long-term and short-term traders. For long-term traders, they are more inclined to observe the trend of the data over a period of weeks or months and compare it with the price of the relevant currency pair.

The figure below shows Canada’s CPI data (reflection of inflation). We can see that CPI is on a downward trend, which means deflation. The Canadian dollar is also in a downtrend like the CPI. When we notice that after a negative CPI data is released, the currency fails to trade at a lower price, which means that the short-selling power in the market is starting to shrink, and the price may fall in the next few days, weeks or months. internal reversal.

Short-term traders may pay more attention to the “Consensus” (market forecast) data in the economic calendar. When the actual data is released, it often deviates from the forecast data of the market, and the accident caused by this data deviation may bring about large market fluctuations.

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News time trading

News trading is a very popular way of trading Forex. These traders focus on trading before and after news releases. As mentioned above, real data that deviates from market expectations will cause greater market volatility.

Let’s take the example of a trader who specializes in USD/JPY news. They will open the economic calendar and click “Show Filter”.

They will select only news from the US and Japan, drag the slider to the far right (to filter for the most important news on the dollar and yen), and select “Filter Results”.

They will see news that could have a big impact on USD/JPY and plan their week accordingly, because they know when there will be big market moves, or at least they can prepare for them before they happen.

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What is Margin and Leverage?

Margin is the funds needed to open a new position. It is not a charge, but an account funding requirement to maintain open positions. Divide the notional trading volume of the position by the leverage ratio to get the margin amount required to open the position.

Therefore, the margin requirement for a new position is related to the size of the open position and the currency pair in which the trader opens the position.

On Aximtrade’s contract details page, the maximum leverage supported by each currency pair exchange is displayed, and the margin requirement for this transaction can be obtained by dividing the nominal trading volume by the leverage.

For example, if the leverage ratio of AUD/JPY is 500 times, which means that for every trader trading 1 lot (worth 100,000 Australian dollars), the margin required by the exchange is 100,000 / 500 = 200 Australian dollars; similarly, the value of the largest position traders can open is 500 times the funds in his account. When the equity in a trader’s account falls below the position margin requirement, the broker may close the trader’s position.

We strongly recommend that you use leverage with caution. Leverage is a double-edged sword that can lead to huge profits as well as huge losses.