London (PRWEB) March 27, 2014
Day by day, an increasing number of clients is showing interest towards such instruments as Indexes and Commodities CFDs. For this purpose, IFC Markets has developed synthetic CFDs on futures that are traded uninterruptedly without an expiration date.
Synthetic future contracts may be defined as non-interrupting futures. Clients can look through the whole trading history of each contract (starting from the very beginning till the current rates) on a single graph in real time mode.
It is a known fact that ordinary Futures have expiration dates that force traders to take note of the date of expiry of any future contracts and make sure to close their positions before the indicated day. Otherwise, an Exchange (futures issuer) will automatically close the position, and the resulting costs will pass on to clients. That is why trading without any expiration dates is a significant advantage over trading futures with fixed time intervals.
What is more important, uninterrupted trading is a very important benefit in PCI trading, since if these groups of instruments had expiration dates, the created PCI would break down every time the date approached, causing inconveniences to traders.
Taking into consideration all inconveniences, IFC Markets has presented a unique opportunity to uninterruptedly trade CFDs on Indexes and Commodities. It is important to note that the principle of building futures differs for each group of instruments.
Index CFDs, such as DJI, SP500, Nd100, DAX, CAC40, FTSE100 and NIKKEI are calculated uninterruptedly without an expiration date on the basis of nearest futures on stock indices of the USA, Germany, France, Great Britain and Japan by the following formula:
The instrument quote = Quote of the nearest liquid future - The deviation of the future price from the index value
For Commodity CFDs the calculation is different. For example, the instrument OIL is calculated uninterruptedly, without an expiration date, on the basis of two nearest futures on Light Sweet Crude Oil by using the following formula:
OIL = F1 * T1 / T + F2 * (T - T1) / T, where:
F1 – quote of the nearest liquid futures contract
T — nominal time between the dates of expiration of two futures
T1 – time remaining until the expiration of the futures contract (F1)
F2 – quote of the liquid futures contract following the first futures
To summarize, IFC Markets is a leading CFD broker. The company prioritizes providing the best possible services and products, so as to satisfy the most demanding clients. Synthetic instruments were aimed to remove all existing inconveniences that the clients had to face because of expiration dates and the resulting costs. The company is continuing to generate new ideas to satisfy the clients' expectations.
About IFC Markets:
IFC Markets is a leading innovative financial company, offering private and corporate investors a wide set of trading and analytical tools. The company provides its clients with Forex and CFD trading through its own-generated trading platform NetTradeX, which is available on PC, iOS, Android and Mobile. The platform is available in 15 languages. The company also offers MT4 platform available on PC, Mac OS, iOS, Android, Mobile and Smartphone. The main priority of the company is to provide highly competitive services, traditional and totally innovative trading and analytical solutions. Today IFC Markets is one of the best global CFD brokers in the market, supporting traders in multiple languages. http://www.ifcmarkets.com