At a Glance
Foreign Exchange Market
The foreign exchange ("FX") market, unlike other financial markets, has no physical location or central exchange. It is a worldwide decentralised over-the-counter market which is open 24 hours a day, 5 days a week for market participants such as banks, other financial institutions, corporations, and institutional and individual investors to trade. As a result, it is the largest, most liquid market in the world with an average daily turnover of approximately $3.2 trillion, according to the BIS. (as of April 2007)
Characteristics of FX Market
Other financial markets' trading hours are dictated by the market hours of the exchanges and time zone which they are located, whereas the FX market is open 24 hours a day, 5 days a week, making it a liquid market throughout the day. Therefore, traders will always have a choice of when to enter or exit the market. Furthermore, individual investors in Asia who usually may not be able to trade during their working hours will have a chance to trade after work, which are the hours when the US and UK markets are open and the greatest trading volume and liquidity is seen.
The FX market is the world's most liquid market, giving investors the confidence to know that market activities remain constant and there are much fewer price gaps and erratic spikes as seen in lower-volume markets.
Lower Transaction Cost
Trades on the FX market are free from a variety of fees,such as administrative fees, clearing fees, exchange fees and government fees. Only a commission is charged on per trade basis.
No Restrictions on Short Selling
Please be aware, however, that investors may also sustain substantial losses in trading FX in both rising and falling markets and therefore investors should carefully consider the risks before participating in the FX market.
The best characteristic of the FX market is probably closest to the ideal fair market, notwithstanding occasional market interventions by some central banks. In the FX market, the vast volume and liquidity virtually make it impossible for even the biggest players to interfere with the general trend in the market.
FX Leveraged Margin Trading
Characteristics of Leveraged Trading
Although the FX market is an attractive place to trade FX, as with any other financial products, the initial investment can be relatively high to begin with. However, leveraged margin trading available in the FX market enables investors to increase the size of their positions by putting up a small percentage of the full value of the positions. With leverage, investors have the freedom to control a large position while utilising less capital to trade.
[Example] A buy order of 100,000 USDJPY at an exchange rate of 90.50.
UOB FX Margin Trading Account
e-Trading with FXLT
Below are product specifications for an e-Trading Foreign Exchange Margin Account. Our user-friendly online trading system FXLT, provides you with a competitive rates in the market for 24 hours a day, 5days a week to trade your way.
|A minimum of SGD$30,000 to open the account. Initial Margin Requirement is 5.0% and the Maintenance Margin is 3.0%. Margining is on a net basisMargining will be in minor currency example USDJPY will be margining in JPY Should your available margin fall below the prescribed maintenance margin; a margin call will be made on your account to top up to the initial margin level within 2 working days or your position will be liquidated.|
Tradable Currency Pair
|We are currently quoting FX prices for JPY, EUR, CHF, GBP, CAD, AUD, NZD as well as cross currency pairs such as EUR/JPY, EUR/CHF, EUR/GBP, EUR/AUD, EUR/NZD, AUD/JPY, NZD/JPY, CAD/JPY, CHF/JPY, NOK/JPY, SEK/JPY, ZAR/JPY and GBP/JPY. Subject to management review, we will be glad to provide FX quotes for other currency pairs upon your request.|
|The minimum contract size per transaction is 100,000 of the base currencies. For example, the minimum contract size per transaction for USD/JPY will be US$100,000 while that of EUR/JPY will be EUR€100,000.Each subsequent incremental is in minimum of 100,000.|
|We will usually quote 1~3 pips spread for major currencies and 3~6 pips for major crosses. These apply in normal market conditions.|
|We will charge a fixed commission to the transacted price for transaction done online. There will be an additional 2 pip charge should order be done through the phone. This commission charge will also be applied for working limit order and stop loss order. For stop-loss order, the executed price would depend on the prevailing market conditions.|
Types of Orders
|We will take DO (good till New York close), GTW (good till New York close on Friday) or GTC (good till cancel).|
|Our trading desk operates on a 24-hour basis. The operating hours are from 6:00 am Singapore time on Monday to New York closing on Friday.|
|Your open positions in your trading account will be carried over at historical prices. However, we will credit / debit swap points to / from your account to compensate for interest rate differentials between currencies bought or sold. The swap points price applied will depend on the prevailing market conditions.|
Type of Orders
|Market order, Limit Order, Stop Loss Order, If Done Order, If Done Limit order, OCO order.|
|Interest will be charged for deficits currencies due to margining or unrealized losses. Interest will be calculated daily and reflected on your statement at the begining of the next month.|
|Intra-day low buy and low sell position will be contra first followed by first out low buy and low sell.|
|Statements would be faxed / emailed (by 12:00 pm). The hard copy of the daily activity statement can also be posted to your registered address the next working day upon your request. All positions will be marked -to-market using settlement price (New York Close) to reflect the realized profit and loss. The swap amount paid / received by you will be reflected in the statements as well. Please note that you would have to take due care in checking the statement.|
- You must be at least 21 years old.
- A minimum initial deposit of SGD30,000 or its equivalent in any currency.
- A copy of IC (locals) or a recent copy of passport (foreigners).
- Visit us at any UOB Group branch to open an account.
Visit us at:
United Overseas Bank Limited
FX Margin Desk
80 Raffles Place
5th Floor, UOB Plaza 1
Trading foreign exchange involves a high degree of risk. UOBBF offers trading on margin. The leverage created by trading on margin can work for you as well as against you, and losses can exceed your entire investment. Before opening an account, be sure that you understand the risks and can withstand the losses and that you seek advice from your advisors as appropriate.
- Call us at +65 6233 6020
- Fax to us at +65 6534 3028
- Contact Us
Uniplus Account Rates
|Remaining Balance Above S$100,000||0.4750|