AxiTrader claims world’s first on Margin FX offering based on NDFs

Australian-owned Forex (FX) and Contracts For Difference (CFD) trading provider AxiCorp, through its flagship AxiTrader brand, has become the first broker to offer Margin exotic FX contracts on MT4 based on prices derived from a rolling Non-Deliverable Forward (NDF).

From today, traders will be able to access 10 new exotic Margin FX currency pairs from Asia and South America on the MetaTrader 4 platform.

Traders can buy and sell these exotic Margin FX currency pairs immediately when the market is open, with daily rollover charges/benefits applied to open positions.

Because they are not actually holding the NDFs, therefore the trader won’t need to hold open positions for one month, (i.e. AxiTrader Exotic Currency Pairs FX Contracts are not NDFs).

In this case, we are offering a simple Margin FX product, without the fixing date complexities characteristics that is normally found in a NDF product.

All of these combined are the key unique differences of AxiCorp’s exotic currency pairs FX Contracts that will allow the trader to retain a long-term position with automated daily swaps.

As of today, traders will be able to transact on the following currencies, each new symbol is based on the price of an underlying one month NDF.

1. Brazilian Real (BRL)
   2. Chilean Peso (CLP)
   3. Colombian Peso (COP)
   4. Chinese Yuan Renminbi (CNY)
   5. Indonesian Rupiah (IND)
   6. Indian Rupee (INR)
   7. South Korean Won (KRW)
   8. Malaysian Ringgit (MYR)
   9. Philippine Peso (PHP)
   10. Taiwanese Dollar (TWD)

All currencies are quoted against the United States Dollar (USD).

“Adding these exotic currency pairs to our MT4 offering is a clear win in terms of the additional products offering accessible via AxiTrader”, said Alex MacKinnon, Head of New Products and Institutional Sales at AxiTrader, “but it also underlines our focus on innovation.”

“We invest a huge amount of time and resource towards finding new and better ways to trade, whether that’s developing a new tech-driven solution that’s never been applied to trading before or expanding our product range,” he added.

“When we do add new products like these exotic currency pairs, it’s not done just for the sake of making up numbers. Our product suite is based on genuine demand and delivering genuine value. With Asia and South America being large growth markets for us, these new currency pairs cater to what our traders in those regions want.”

Key Features:

For traders wanting to enter a position in one of the new exotic Margin FX currency pairs they are available to trade via MT4 in the same way as any other currency pair.

• Trading is available from USD 1,000 up to a maximum of USD 2,000,000
• A daily swap charge/credit is applied to positions open at End Of Day
• Each new symbol is based on the price of an underlying one month NDF

Another feature of these new exotic currency pairs is that the trading sessions range from 8-20 hours rather than the 24-hour pricing of other FX pairs.

Normally a Non-Deliverable Forward (NDF) is a cash-settled FX forward contract in a thinly traded or non-convertible foreign currency against a freely traded currency like US dollar, where the profit or loss at the settlement date is calculated by taking the difference between the agreed upon NDF contract rate and the spot rate at the time of Fixing, for an agreed upon notional amount of funds.

The gain or loss is then settled in the freely traded currency. NDFs were originally used to hedge against volatility in the currency markets, particularly for exotic currencies. Corporate users, such as exporters and importers, used to be the largest active users of NDFs.

With AxiTrader, the trader would be able to access the pool of these exotic currency FX contracts, and because the trader is not actually holding the NDFs, they won’t need to hold open positions for one month.

AxiTrader’s exotic currency pairs FX Contracts are not NDFs. We have removed the fixing date complexities of a NDF product to deliver a simple Margin FX product that allows the client to retain a long term position with automated daily swaps.