Welcome to our FAQ center. You can browse FAQ's by the categories below:

   

Account Administration

How can I change my account leverage?

The leverage requirement is set automatically by system default to 3 levels:

• 1st level is 1/200 per trade amount up to 100,000 units
• 2nd level is 1/100 per trade amount from 100,000 to 1,000,000 units
• 3rd level is 1/25 per trade from 1,000,000 units and above.

How do I open a Starter account?

Account opening consists of 3 steps:

1. Register and create an account: by submitting your application online through our website, use the following link to open a Starter Account or by downloading the forms in PDF format and submitting the completed forms to CKFX Corporation by fax.
2. Deposit funds into your account: by using credit card or wire transfer. Use the following link to deposit funds you will receive a deposit receipt e-mail that contains all the relevant information about your first deposit.
3. Wait for Back Office approval: the Back Office will activate your trading account and will send you an activation e-mail with all the necessary information.

What is the minimum account balance?

CKFX allows you to start trading with a minimum deposit of $100 in the Starter account and a minimum deposit of $1,000 in the Pro account.

How do I open a Pro account?

Pro Account opening consists of 4 steps:

1. Register and create an account: by submitting your application online or by downloading the forms in PDF format and submitting the completed forms to CKFX Corporation by fax.
2. Deposit funds into your account: by using credit card or wire transfer. Use the following link to deposit funds You will receive a deposit receipt e-mail that contains all the relevant information about your first deposit.
3. Wait for Back Office approval: the Back Office will activate your trading account and will send you an activation e-mail with all the necessary information.
4. Confirm your identification: To activate your trading account, you are required to submit the following documents to confirm your identity:
   • Copy of a Government issued photographic ID, such as a passport, national identity card or driver’s license. All forms of ID must be current and copies should clearly display your photo and name.
   • Proof of residence corresponding to the address given in your account application. This may include a recent bank statement, utility bill or mortgage statement, and must clearly indicate both your name and residential address. We will not be able to accept any proof of residence that only provides a P.O. Box number.

Please submit your ID and proof of residence via fax with the attached coversheet to Fax: +357-22030401 or scan and mail to support@ckfx.com

Can I open more than 1 account?

Yes, CKFX offers 2 types of accounts; Pro and Starter and you can hold as many accounts as you want. In fact, you can even have other traders trading on your behalf, on accounts, or alternatively you can trade by yourself.

Can I open a CKFX account if I live in the US?

Residents of the US are not permitted to open accounts with CKFX. Please Note: residents of Cyprus are also not permitted to open an account with CKFX.

What is the default currency of the application?

The default currency for CKFX accounts is USD: all trades are settled in USD.

What kind of photo identification can I use to confirm my account information?

Valid forms of ID include a government-issued photo ID (e.g. driver’s license or passport) along with a document that confirms your address (e.g. copy of a credit card statement, or recent utility bill). Please ensure that the address on one of the IDs matches the address information provided on your account application. If you have provided a P.O. Box, please note that we will require confirmation of your residential address. You may black-out sensitive information from your credit card or bank statement if you so wish. For government-issued photo ID, the identification number, date of issue and expiry date must be clearly visible on the copy or scan you send to us.

Does CKFX deduct funds for tax purposes?

CKFX does not deduct any amounts for tax purposes from your account. As we have clients from around the world, each with differing tax regulations, we do not provide any tax advice and instead we recommend that you speak with your Tax Advisor or Accountant. However, you can calculate your gains or losses simply click on the 'File' tab at the top of your CKFX Wintrader application and select 'Reports'.

How do I change my address information?

To update the address information for your account, please send us a document that confirms your current address (such as a utility bill, or a bank/credit card statement). You can fax this document to +357-22030401, or email a scanned copy to support@ckfx.com

What is the difference between the CKFX Starter account and a Pro account?

The CKFX Starter account is designed to introduce traders to the excitement of trading currencies online and for those with limited investment capital. With as little as $100, a trader can open a CKFX Starter account and begin trading foreign exchange using the same platform as our regular traders over the Starter trading platform, trades are executed in standard sizes of 1,000 base currency per one lot or higher up to a deal size of 100,000 per trade. The smaller trade sizes enable traders to take smaller size risks.

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Currency Trading

What is currency trading?

Also referred to as foreign exchange, FX or Forex, currency trading is the trading of one currency against another. In terms of trading volume, the currency exchange market is the world's largest market, with daily trading volumes in excess of $1.5 trillion US dollars. This is orders of magnitude larger than the bond or stock markets. The New York Stock Exchange, for example, has a daily trading volume of approximately $50 billion.

Why trade currencies?

Currencies are traded for hedging and speculative purposes. Various market participants such as individuals, corporations, and institutions trade Forex for one or both reasons. Corporate treasurers, private individuals and investors have currency exposures during the regular course of business. The CKFX Platform is an ideal platform to hedge any such exposure. An investor, who has bought a European stock and expects the EUR exchange rate to decline, can hedge his currency exposure by selling the EUR against the USD. Currency markets are ideally suited for speculative trading. The foreign exchange market has a daily volume in excess of 1.5 trillion USD, which is 50 times the size of the transaction volume of all the equity markets added together. This makes the foreign exchange market, by far, the most liquid and efficient financial market in the world. Thanks to its efficiency, there is little or no slippage of market price for the execution of even large buys and sell orders. Traders are able to take advantage of intra-day volatility thanks to the low spreads and enter positions for short time periods, such as minutes and hours. Unlike equity trading, where restrictions limit a trader's ability to profit from a market down turn, there are no such constraints on currency trading. Currency traders can take advantage of both up and down trends thus increasing their profit potential.

What are the most commonly traded currencies?

The most commonly traded currencies are: USD, EUR, JPY, GBP, CHF, CAD and AUD. The most commonly traded currency pair is EUR/USD.

What is the difference between an open order and open position?

Open order: Buy or sell order that remains in force until executed or cancelled by the customer.

Open position: Any position (long or short) that is subject to market fluctuations and has not been closed out by a corresponding opposite transaction

What is the difference between market and limit orders?

Market orders are executed immediately at the current market price. Limit orders are orders that a trade should be executed (in the future) when the market price reaches a specified price trigger. A limit order places restrictions on the maximum price to be paid or the minimum price to be received. For more information on how market and limit orders are executed on the CKFX Platform, please use this link to the WinTrader manual.

What is a cross rate?

A cross rate is the exchange rate between two non-USD currencies. For example, the exchange rate associated with EUR/JPY would be a cross rate. On the surface, even though USD is not the base or quote currency, it is indirectly involved. The cross rate for EUR/USD is the result of two separate conversions involving USD: EUR/USD and USD/JPY

What are the 'bid' and 'ask'?

Bid -The price at which buyers offer to buy currencies from sellers.
Ask - The price at which sellers offer to sell currencies to buyers.

Consider: EUR/USD being quoted at 1.2213/1.2216

• The bid is the left or first of the two quotes: 1.2213. This is the conversion rate when you sell EUR and buy USD.
• The ask is the right or second of the two quotes: 1.2216. This is the conversion rate when you buy EUR and sell USD.

What is a 'round trip' transaction?

Currency trading is designated "round trip" because the positions will be closed (settled) within the same account and same account currency from which the trades originated. Let's say your account is in US Dollars. You decide to buy the EUR/JPY pair. Any profits or losses resulting from your trade (which would be in Yen) will be ultimately converted to USD and your US Dollar-based account will be credited or debited accordingly.

What is a 'round trip' transaction?

Currency trading is designated "round trip" because the positions will be closed (settled) within the same account and same account currency from which the trades originated. Let's say your account is in US Dollars. You decide to buy the EUR/JPY pair. Any profits or losses resulting from your trade (which would be in Yen) will be ultimately converted to USD and your US Dollar-based account will be credited or debited accordingly.

What does it mean to be 'long' or 'short' a currency?

Being long means buying a currency. Being short means selling a currency.

If a trader goes long USD/JPY, he or she buys US Dollars and sells Japanese Yen. Buying a currency is synonymous with taking a long position in that currency. A trader takes a long position in a currency if he or she believes it will appreciate in value.

If a trader goes short USD/JPY, he or she sells US Dollars and buys Japanese Yen. Selling a currency is synonymous with shorting that currency. A trader would short a currency if he or she believes it will depreciate in value.

What is margin & how does it works at CKFX?

Collateral (could be cash and/or unrealized profit) that an investor is required to keep on deposit to cover potential losses. Margin requirement at CKFX has 3 levels:

• ½ % for open position with Amount < then 100,000. (Level 1)
• 1% for open position with 100,000 < Amount <1,000,000 (Level 2)
• 4% for open position with Amount > 1,000,000 (Level 3)

For example, if the margin requirement is 4% and a trader wishes to buy $2 million USD/JPY, 49.5 thousand US Dollars in margin is required in his or her account.

• 0.5% of $100,000 or 0.005 x 100,000 = $500 (margin requirement for Level 1)
• 1% of 900,000 or 0.01 x 900,000 = $9,000 (margin requirement for Level 2)
• 4% of 1,000,000 or 0.04 x 1,000,000 = $40,000 (margin requirement for Level 3)

This equals $49,500

Where can I get advice on the currency markets?

CKFX does not provide consulting services, phone trading and investment advice.

Who participates in the FX market?

Individual investors and speculators, businesses (importers and exporters especially), multinational corporations, banks (commercial, investment, private), mutual fund companies, pension funds, insurance companies, hedge funds, central banks, and government agencies are just some of the market participants who trade Forex. Historically, smaller-scale, individual investors have had limited access to the FX market. Major Banks, multinational corporations and other participants, trading in large transaction sizes and volumes, have dominated this market for decades. Technology such as the CKFX Platform, however, has lowered the barriers of entry and opened up this attractive marketplace to a new breed of investors and speculators.

How do I manage risk?

Traders have many tools to manage risk, including:

• Stop loss orders
• Trailing stops
• Only trading with money you can afford to lose

What is technical analysis?

Technical analysis relies on historical data in the form of charts and graphs to identify patterns which could be extrapolated to predict future price movements. Technical analysts believe that everything they need to know about where the market is headed is in the historical price charts themselves.

What is fundamental analysis?

Fundamental analysis uses economic indicators along with economic, business and political news to identify buying and selling opportunities. Fundamental analysts believe that the past is no indication of the future.

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Fund Administration

How do I deposit funds?

For USD Accounts there are three available methods for depositing: Credit Card, Bank Wire Transfer and Western Union money transfer.

Please use the link deposit funds.

Can I deposit funds in any other currency other than US dollars?

No, CKFX accepts US Dollars only.

On your website it states that you do not accept third-party deposits. What exactly is a third-party deposit?

A third-party deposit is any deposit from a party other than the CKFX account holder. CKFX does not accept ANY third-party deposits and will reject third-party deposits back to the sender.

I have a joint bank account with my spouse and his/her name appears with my name on the ordering party of the wire transfer. Will you accept this deposit or will you consider this as third-party?

CKFX will accept deposits coming from a joint bank account as long as one of the joint parties is an CKFX account holder. Upon withdrawal of the funds, the funds will be sent back to the same bank account from which the funds were received.

The account I have is an entity account and I am the company’s president. Can I send a wire from my own bank account?

No. The name of the party ordering the wire must be the same name as the CKFX entity account. Therefore, if the CKFX entity account is held under ABC Inc., the ordering party of the wire must also be ABC Inc.

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Technical Support

Do I need to download any software in order to use the CKFX Trading Platform?

No. CKFX is a Java-based platform that will work with most web browsers and does not require that you download any software use this link to log into the Java trading platform.

What are the minimum requirements in terms of connection speed?

We recommend a minimum connection of 56 Kbps or higher.

Which Web browsers are compatible with CKFX?

Any browser with JDK1.1 support which includes all Netscape Navigator versions 4.75, Microsoft Internet Explorer version 5.0 and up, Firefox, and other popular web browsers. If you do not have one of these browsers, you may freely download them from Netscape or Microsoft. Your web browser should also support 128-bit encryption.

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Trading with CKFX

What is the minimum and maximum trade size?

The minimum trade size with CKFX is $1,000 and the maximum trade size $5,000,000. In the event that the customer’s account has sufficient funding, the customer could hold more than one $5,000,000 position. The number of units you can trade with is determined by: the currency pair, the margin you have available, and the margin ratio for your account.

How much does it cost to trade with CKFX ?

There are no costs other than the spread to trade with CKFX. Trading clients pay the spread only, with no fixed transaction fees or service charges.

Can I go long and short at the same time?

It is not possible to hold long and short positions at the same time in the same account over the same pair, however, CKFX does support this through the use of sub-accounts.

If you wish to create this behavior your Long positions can be held in one account and short positions in another. You can switch between the two accounts easily, without having to log out or close the Platform.

What are CKFX trading hours?

Trading starts on Sunday 17:00 pm EST until Friday 14:00 pm EST.

What currencies can I trade in?

CKFX currently offers the following 26 currency pairs:

AUD/JPY, AUD/CAD, AUD/USD AUD/NZD, CAD/JPY, CHF/JPY, EUR/AUD, EUR/CAD, EUR/CHF, EUR/GBP, EUR/JPY, EUR/USD, GBP/AUD, GBP/CAD, GBP/CHF, GBP/JPY, GBP/NZD, GBP/USD, NZD/JPY, NZD/USD, USD/CAD, USD/CHF, USD/JPY, AUD/CHF, CAD/CHF, NZD/CHF.

How often do the prices update?

The prices are updated in real-time, which means when the market (or price) for a currency changes it will be reflected on the front-end immediately.

Why is my other rate source different from the rates on CKFX?

Different sources will may quote different price levels. When variability in the spread is considered, it is most likely that most sources will differ from each other at any given time. Customers may use external rate sources as a general guide for price levels, but they should never be used as a direct price comparison to CKFX prices, which are always considered to be authoritative.

Do you have real-time charts?

Yes. The graphing feature in the CKFX user interface provides real-time charts/graphs for tracking price movements.

What is a margin 'call' as it relates to the CKFX Platform?

CKFX requires that you always have sufficient margin to cover any losses you might incur. As soon as that is no longer the case, then CKFX Platform system will automatically close all your open positions using the prevalent market rates at the time of closing action to prevent further losses from occurring. If you are logged in to CKFX platform, then the system will make an attempt of warning you when the Equity comes to within 98% of your position used margin. The warning takes place through a window that pops up automatically on your screen. The margin call will take place when your Equity reaches the 20% level of your used margin. (It will happen when your usable margin is a negative number).

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