Why Margin Forex?

People who trade in Margin FX contracts may do so for a variety of reasons. Some trade for

1. Speculation, that is, with a view to profiting from fluctuations in the price or value of the underlying instrument or security. For example, Margin FX traders may be short-term investors who are looking to profit from intra-day and overnight market movements in the underlying currency. Margin FX traders may have no need to sell or purchase the underlying currency themselves, but may instead be looking to benefit from market movements in the currency concerned.

2. Hedging enables clients to protect themselves against adverse currency swings, yet secure enhanced exchange rates when offered, thereby protecting the profit margin made by the corporate during the business transaction relating to the foreign currency trade or protecting the cost of the client’s purchase offshore.

Others trade Margin FX to hedge their exposures to the underlying currency to protect their exchange rate and to provide cash flow certainty. Foreign exchange exposures may arise from a number of different activities.

· Companies or individuals, that are dependent on overseas trade, are exposed to currency risk. This can be to purchase (or sell) physical commodities (such as machinery) or even financial products (such as investing in securities listed on an international stock exchange). For example:

(i) An exporter who sells its product priced in foreign currency has the risk that if the value of that foreign currency falls then the revenues in the exporter's home currency will be lower; or

(ii) An importer who buys goods priced in foreign currency has the risk that the foreign currency will appreciate thereby making the cost, in local currency terms, greater than expected.

CKL provide private investors with a successful combination of custom-engineered technology, capital market expertise and an internal advanced back office to deliver a trading platform that is leading edge. Other advantages are listed below:

· Efficient multi-product platform

· Competitive price quotes from market makers

· Live quotes and charts

· 24 hour dealing desk for additional service

· 20-day free trial of platform

· No commission costs or exchange fees.

· Built in back office – view statements, orders, margin alerts and activity on-line

· Access to news, charts and economic calendar on-line

· Real time pricing and market depth on-line

· Phone or place orders electronically

· 1300 and 1800 numbers

· Leverage up to 50 times with a low 2% margin rate