The market quotes
Spread is the difference between the BUY / BID price and the SELL / ASK price of any commodity. For example, if Gold is trading at 1164.30 (buy/bid) and 1164.60 (sell/ask) US $ per ounce, then we will say that the spread in gold is 30 cents.
No, PMEX does not execute orders during off-hours.
Rates are quoted on PMEX mostly in USD or other foreign currencies in case of Forex pairs (where USD is not involved). At the point of trade or when taking positions, the USD is converted to and from PKR. The applied conversion rate is State Bank of Pakistan's Mark-to-Market Revaluation Exchange rate for the previous day. This rate is published daily on SBP website for all major foreign currencies.
This trade is conducted opposite to a buying entry. If a trader feels that the price of a commodity is likely to decline, the exchange permits him to sell that commodity in advance without having it. If his assessment proves correct and the price does decline, he purchases back the sold commodity at a price lower than the sale price. This difference in the sale and purchase price becomes the trader's profit. Market moves as a result of a constant struggle between these buyers and sellers.
If you transfer funds online to PMEX bank account within banking hrs (9 AM to 5 PM), the amount will be allocated to your trading account on the same day. It normally takes about 30-60 minutes.
In case you transfer funds to PMEX bank account after banking hrs, the amount may be allocated to your trading account on the following banking day.
If you use cheque as the mode of deposit, funds will be credited to your trading account after the cheque has been cleared from your bank account and the funds have been received in PMEX designated bank.
3 US Equity Indices which include DOW Jones Industrial Aveage (DJIA), Standard and Poor's 500 (S&P 500) and NASDAQ 100 can be traded through PMEX This is an excellent opportunity for local stock traders as US equity indices are far more reliable than the local stock exchange (PSX).
You will simply square / close your position in expiring contract and take a fresh position in the newly opened contract. It is entirely upon the trader's own discretion whether he wants to roll over the position to the next contract or otherwise.
Your trading account shall be entirely opened and maintained in Pak Rs. All deductions from your account such as Fees and Commission shall also be in Pak Rs. Your trading however, shall take place in USD as international prices of most commodities are quoted in USD.
Yes, PMEX has introduced a state-of-the-art international trading platform known as Meta Trader 5 or MT5. This platform enables traders to fully manage their accounts across PCs, Smartphones and Tablets (Android and iOS based). MT-5 has a host of technical indicators that can be implemented on commodities / currencies / indices to maximize gains and manage risks.
PMEX has fully migrated to the Meta Trader 5 / MT5 trading platform. It is an internationally recognized trading platform which is fully compatible with these devices:-
Leverage amplifies / increases your purchasing power. PMEX provides a leverage of up to 20 times at no cost. This means that with a deposit of Rs.0.1 Million, you can trade contracts worth Rs.2.0 Million. The ratio of leverage is determined by P.M.E.X and varies across commodities. This allows traders to take positions far exceeding their invested capital. However, as the leverage increases, so does the risk. Leverage is a double-edged weapon and must be used with extreme caution.
Going "long" is when a trader buys any commodity, expecting its value to rise. Going "short" is when a trader sells any commodity in advance (without having it in the first place), expecting the price to decline. Short or short selling is officially allowed and it enables traders to make a profit even when the price of a commodity is on downtrend.
The commodity and foreign exchange market is among the biggest and most liquid financial markets in the world, with traded value in Billions of US Dollars per day. This makes it typically very easy to get in and out of trades any time, even in large volumes.
Ample buyers and sellers are also ensured in the form of Market Maker by PMEX to facilitate traders in entry and exit from the market at every rate. The Market Maker shadows the International price of the commodity / currency pair in real-time.
A bullish market is characterized by rising / spiking prices. On the contrary, when the price is declining in the market, it is said to be in bearish state. Both terms are unique to commodities and equity markets and are used solely to depict the price trend.
G.T.C stands for Good Till Cancelled. Unlike a conventional order that is valid only for the day, this order (buy or sell) remains valid either till execution, cancellation or contract expiry. This type of order is independent of trading day.
Position in any contract can be held till its pre-defined expiry date. There are no charges for carrying the position over to the next working day, or any number of days. However, once you switch your position from one contract to the other, then charges would apply. This generally happens when a trader switches the position from an expiring contact to the freshly opened contract.
All commodities and currencies are traded in the form of Contracts which are regulated directly by PMEX Traders trade in contracts in the form of Lots. Minimum lot size for the contract of any commodity / currency pair is 1. Each contract has a pre-defined expiry date. When the current contract of any commodity is nearing expiry, a parallel new contract for the same commodity is opened by PMEX This enables traders to easily shift their position from expiring contract to the fresh contract; if they desire so.
On the last day of a contract's expiry, each trader has till 4:00 PM to square the position, failing which the position (long or short) is self liquidated at a universal "settlement price" determined by PMEX This price is generally close to the price prevailing around the closing time of 4 PM.
It varies with each commodity but is predefined for the convenience of traders. It generally ranges b/w 4 - 8 - 12 weeks, depending on the commodity.
It is a built-in safety measure that enables a trader to timely exit an unfavorable trade. It caps your loss in any trade beyond the specified price threshold. It can be placed for both long and short positions. Trading with stop loss is strongly advised for all traders, especially newcomers.
Meta Trader 5 / MT5 is a feature rich trading platform that has the following salient features:-