Stock indices are some kind of an indicator which is showing the value development of equity of the certain stock market. This way, investors have the possibility to monitor the direction in which this particular part of the market is going. The most notorious stock indices are DAX, NASDAQ, S&P 100, and others.
The first one of the mentioned the DAX index (more info about it HERE), a personal favorite of the majority of traders mostly due to its high volatility. However, it’s also the high volatility of this instrument that makes it quite a risky investment option. Thanks to micro-lots, traders can now speculate on the rise or decline of DAX prices with lighter volume investments and manage their risks better.
A standard trading unit in the world of Forex is Lot which represents a transaction volume of 100 000 units of currency mentioned on the first place of the currency pair. For example 1 Lot of EURUSD currency pair has the value of 100 000 EUR. This way, trading in Lots can lead not only to higher profits but also to higher losses. In order to lower this risk, the trading with lighter investment volumes such as micro-lots (0.01 Lot) is recommended. If we were to use the same example currency pair as above (EURUSD), 1 micro-lot would have the value of 1000 EUR.
The relation between Lots, Micro-lots, leverage, and margin is something that should be covered in a separate article. So we wrote one, you can find it HERE.
As a broker we play the role of a “middle-man” who pairs trading orders of traders with their counterpart. Due to the fact that we are an STP broker (Straight Through Processing) we don’t act at the counterpart ourselves but we rather pair each order with price on real market. And it’s these prices that liquidity provider helps us to provide. The better the liquidity provider, the bigger the depth of market and therefore better trading conditions for our clients. And that’s why we have decided to switch one of the liquidity provider.
Trading hours of other instruments will remain unchanged.
In Purple Trading, we strive to provide our clients with top-tier trading conditions. However, that cannot be done without relentless search for new possibilities and options which current market has to offer. The current switch to a new liquidity provider is the embodiment of the fact that in order to achieve better conditions, a significant change has to be done once in a while. We firmly believe that this change will be for the better and we wish you good luck not only in trading.
What's new in Purple Trading, Market Shot, market analysis and articles...
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71.65 % of retail investors lose their capital when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary, and does not constitute investment advice. L.F. Investment Limited. will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
The content on this website is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions. L.F. Investment Limited has taken reasonable measures to ensure the accuracy of the information on the website, however, does not guarantee its accuracy, and will not accept liability for any loss or damage which may arise directly or indirectly from the content or your inability to access the website, for any delay in or failure of the transmission or the receipt of any instruction or notifications sent through this website.
At this time L.F. Investment Limited cannot and will not accept clients from outside European Economic Area and from Belgium, Switzerland and USA. You need to be 18 years old or legal age as determined by the laws of the country where you live in order to become our client.
Our payment providers are TrustPay, a.s. authorised and regulated by the National Bank of Slovakia and Emerchantpay Ltd. which is authorised and regulated by the Financial Services Authority (FCA) of the United Kingdom. Our Electronic money institution is Cardpay authorized by Central Bank of Cyprus.
Purple Trading is a Cypriot national trademark (no. 85981), National UK trade mark (no. UK00003696619) and European Union trade mark (no. 018332329) owned and operated by L.F. Investment Limited, 11, Louki Akrita, CY-4044 Limassol, Cyprus, a licensed Cyprus Investment Firm regulated by the CySEC lic. no. 271/15. The company is legally obligated to follow all laws of Cyprus and rules and conditions of its CySEC license. The subsidiary of L.F. Investment Ltd, LFA International Ltd., Aiolou & Panagioti Diomidous 9, Katholiki, 3020, Limassol, Cyprus, registration number: HE422638 is responsible for card processing.