Laiki eBank, in association with the Bank’s Treasury Department, is offering a new revolutionary on-line Foreign Exchange Trading service. From the comfort of your home or office, you can use Laiki eFX Trading to execute your FX transactions instantly while enjoying competétive spreads and significant leverage.
With as little as $10.000 (or any foreign currency equivalent) as collateral, you can trade in all major currency pairs using a significant leverage factor. The services offered to you are:
- Real-time prices
- Real-time news from major news services
- Real-time charts
- Direct access to the Bank’s dealing room
- Dealing spreads that are among the most competitive in the global market
No hidden costs or commissions: the price appearing on your screen is the price traded.
FX Trading / Margin Trading
Account Opening Procedure
Interest Calculations
Risk Warnings
Product Availability
Risk Disclosure Notice
Foreign Exchange Trading / Margin Trading
The service offered is an over-the-counter (OTC) service and is not subject to regulations set by organized exchanges.
Foreign exchange is the purchase or sale of one currency against another. The price of exchange reflects the relative perceived value of one country’s currency based on underlying economic fundamentals and political stability.
Margin trading is based on the principle of leveraging. This means that the buyer of a contract needs only to put a small percentage of the total contract value as outlay. The implication from the use of leverage is that expected profits/losses are multiplied according to the leverage factor.
Foreign currency trading has inherent advantages over traditional forms of investment:
Return
There is no limit as to how much a currency can appreciate or depreciate over a period of time. A 100% return on investment in a given year is not uncommon due to the volatility of the spot market. In the same way, substantial losses can also be incurred.
Liquidity
With an average daily transaction volume equal to $1,400 billion, buyers and sellers of currencies can easily convert their contracts into cash. The enormous volume of trades enables positions to be cleared instantly.
Short Selling
Short selling or selling contracts without initially buying them is an accepted practice in the spot currency market. Short selling allows the investor to take advantage of daily price fluctuations as well as trending markets.
Leverage
The principle of leverage assumes that only a small percentage outlay of a contract’s nominal value is required, thus allowing greater cashflow flexibility and potentially higher returns on capital (see risk warnings).
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Account Opening Procĺdure
To open an eFX Trading account you must:
- Open a Laiki Bank foreign currency account with a minimum deposit of US$10,000 or equivalent.
- Complete a Laiki eFX Trading application form. Click here to download a copy of the form. If you are not already a Laiki eBank subscriber you must also complete an application for electronic service.
- Click here to download and install our Laiki eFX Trading software.
- Upon approval we will issue a user ID and password for you to access the service. These will be sent to you by electronic mail in a secure fashion.
Should you need any assistance regarding the application process or have any questions, please contact treasury@laiki.com or call Laiki Bank Treasury on 22-811389 or 22-811390 (+357 22 811389 or +357 22 811390 if calling from abroad).
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Interest Calculations
Interest on eFX Trading accounts is calculated as follows:
- Open trade positions accrue interest through the rollover markets at the close of business each day. For example, say a client bought Sterling and sold US Dollars. The client would be entitled to credit interest on his Sterling account and due to pay debit interest on his Dollar account, and since Sterling has a higher interest rate than the Dollar the client would benefit from the interest rate differential.
- Clients net currency balances including excess funds, trading profit/losses and previous rollover gains/losses, accrue interest in their particular currency at the daily call rate.
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Risk Warnings
Do not invest in leveraged products or derivatives with money you cannot afford to lose. An investment in derivatives can fluctuate in value and you may not get back the amount that has been invested. With certain transactions you not only lose what they invested at the beginning but may incur a liability to pay further unspecified amounts.
An investment in derivatives is not suitable for an investor seeking income from the investment because the investment as such will fluctuate in money terms. Derivatives are therefore only suitable for those customers who fully understand the market risk and have previous trading experience. Investments in Over The Counter (OTC) products which are not readily realisable, may be difficult to sell or realise and obtain reliable information about their value or the extent of the risks to which they are exposed .
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Product Availability
Laiki eFX Trading is presently available to individuals and legal entities authorized to carry out FX transactions in accordance with Cyprus exchange control regulations.
For more information please contact treasury@laiki.com or call Laiki Bank Treasury on 22-811389 or 22-811390 (+357 22 811389 or +357 22 811390 if calling from abroad).
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Risk Disclosure Notice
It is important to understand the risks involved in Futures, Options, Margined Foreign Exchange and Contracts for Differences. It is clear that apart from the representations made and explanations given to you by an employee of the Bank the possible risks involved in Derivatives trading can sometimes be quite substantial. Therefore, you should carefully consider whether such trading is suitable for you according to your financial condition and we strongly encourage you to obtain independent financial advice before utilizing this service. We would also like to emphasize that you may sustain a total loss of the initial funds and any additional funds that you deposit to establish or maintain a position in the market. If the Market moves against your position(s) you may be called upon to deposit a substantial amount of additional funds at short notice to maintain your position(s). If you do not provide the required funds within the prescribed time your position will be liquidated at a loss, and you will be liable
for any resulting deficit in your account.
The high degree of leverage that is obtainable in derivatives trading due to the small margin requirements can work against you as well as for you. The use of leverage can lead to large losses as well as significant gains.
We provide execution services to our customers whom we consider as fluent in trading such products and are able to appreciate the risks involved.
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