Basic Trading Education For Clients

Company Introduction

Broker

Broker is a middle man that deals between Buyer and Seller. Like Khadija Commodities

Launch in 2013

Owners

Director: Mr. Ashraf Mughal

CEO: Mr. Qasim Bilal Sahib

Registration

Licensed and regulated by SECP (Securities and Exchange Commission of Pakistan).

Membership

Khadija Commodities is a member of Pakistan Mercantile Exchange and member code is 221. PMEX was established in 2002 and commenced operation in 2007. Share Holders of PMEX are NBP, ZTB, PKIC, Pakistan Stock Exchange, Pak Brunei Investment Company, LSE Financial Service, and ISE Towers REIT Management

 

  • Trading

The action or activity of buying and selling goods and services is called Trading.

Physical Trading

The act of Buying and selling of goods physically is called Physical Trading. Like you are going to a market and buying something.

Online Trading

The act of buying and selling assets through the Internet is called Online Trading. Like online shopping.

  • Stock Exchange

Organized and regulated financial market where securities (bonds, notes, shares) are bought and sold at prices governed by the forces of demand and supply.

A stock exchange does not own shares. Instead, it acts as a market where stock buyers connect with stock sellers. Stocks can be traded on one or more of several possible exchanges such as the New York Stock Exchange (NYSE).

 

  • Products

Metal

Gold, Silver, Copper, Platinum etc.

Commodities

Crude Oil, Brent Oil, Natural Gas, Wheat, Rice, Red Chilly etc.

Currencies

GBP, Euro, USD, JPY, AUD etc.

 

  • Products Movements

Gold= 20 Points

Oil= 3 Points

Euro= 80-100 Points

Pound= 80-100 Points

Yen= 100-125-150 some time

JPY= 80-100(130-150 sometime)

 

  • FOREX

Forex, also known as foreign exchange. The foreign exchange market is the “place” where currencies are traded.

Forex trading is a real business that can be profitable, but it must be treated as such. It is not a get rich overnight business, no matter what you may read elsewhere. However, it is possible to have a profitable legitimate forex business.

 

  • Margin System

Buying on margin is borrowing money from a broker to purchase stock. You can think of it as a loan from your brokerage. Margin trading allows you to buy more stock than you’d be able to normally. To trade on margin, you need a margin account.

Like Khadija Commodities, in which clients just paid 3-4% and remaining is paid by a Company as leverage.

Margin System Example

For example, if you want to buy 2000 shares of  Company A, which trades at Rs 300, you will need about Rs 6 lakh.  But if you buy a future contract of that company, which comprises 2000 shares, you only need to pay a margin of 15 per cent. So by putting Rs 90,000, you can get an exposure of Rs 6 lakh.

Margin in Products

Metal: 3% margin

Commodities: 3% margin

Currencies: 2% margin

 

  • Leverage System

Leverage is a temporary loan given to the trader by the broker. Using leverage you are able to open a trade of a larger size than the actual amount of funds you invest in it. Leverage is presented in the form of a multiplier that shows how much larger than the invested amount* an open position (margin) is.

 

  • Advance selling

Sell any product in advance. And buy it after selling so in this case if marketing will come down then we would be in profit.

 

 

  • Lot Sizes

Three Sizes of Lots

  1. Micro Lot
  2. Mini Lot
  3. Standard Lot

 

Gold:

Micro=1 oz.

Mini=10 oz.

Standard=100 oz.

 

1oz=2.66 tolas

Crude Oil:

Micro=10 Barrel

Mini=100 Barrel

Standard=1000 Barrel

 

1 Barrel=159 Liter

1 Barrel=42 Gallon

1 Gallon=3.78 Liter

Currencies:

Mini=10,000

Standard=100,000

 

  • Market Timing
  1. Sidney
  2. Australia
  3. Japan
  4. Asia
  5. Europe
  6. UK
  7. USA

 

  • How Market Moves?

News

Anything which is good in America that is good for dollar and bad for all market. Also anything which is bad for America that is bad for dollar and good for all market.

For example, if bomb blast incident happen in America (bad news so dollar weak and market moves up so buy the product like gold).

Fundamentals

Different data’s of countries. Such as jobless claims, unemployment rate.

Technical

Graphs and charts of a market. Such as study of candle sticks, line chart, bar chart etc.

 

  • Important Data’s

Gross Domestic Products (GDP)

Unemployment Claims

Trade Balance

FOMC Speech (Yellen)

Existing Home Sales

Crude Oil Inventories

ADP Non Form Employment Change

ISM Manufacturing

Federal Fund Rates

 

  • Market terminologies

Stock Exchange

Organized and regulated financial market where securities (bonds, notes, shares) are bought and sold at prices governed by the forces of demand and supply.

A stock exchange does not own shares. Instead, it acts as a market where stock buyers connect with stock sellers. Stocks can be traded on one or more of several possible exchanges such as the New York Stock Exchange (NYSE).

 

Broker

Broker is a middle man that deals between Buyer and Seller. Like Khadija Commodities

 

SECP

SECP stands for Securities and Exchange Commission of Pakistan. The SECP is the financial regulatory agency in Pakistan whose objective is to develop a modern and efficient corporate sector and a capital market based on sound regulatory principles, in order to encourage investment and foster economic growth and prosperity in Pakistan.

 

PMEX

PMEX stands for Pakistan Mercantile Exchange. PMEX established in 2002 and commenced operations in 2007. PMEX Pakistan’s first and only multi-commodity futures exchange. It is licensed and regulated by SECP. PMEX offers a complete suite of services i.e. trading, clearing and settlement, custody of assets as well as back office.

 

SL

SL stands for Stop Loss. A stop-loss order is designed to limit an investor’s loss on a position in a security.

 

TP

The rate supposed to be the level where the trader wants to take a profit is sometimes referred to as the “take-profit point”.  The Take Profit (TP) is an important component in all trading activities.

 

CFD

CFD stands for Contract For Differrence.CFD is a contract between two parties, typically described as “buyer” and “seller”, specifying that the seller will pay to the buyer the difference between the current value of an asset and its value at contract time (if the difference is negative, then the buyer pays instead to the seller). Like

10 Barrel=1 CFD

100 Barrel=10 CFD

1000 Barrel=100 CFD

 

 

Break Even point

It is the point where no profit and no loss. Break- Even point is a point where the cost of production and the revenue from sales are exactly equal to each other; which means that the firm has neither made profits nor has incurred any losses.

 

Marketing

It is a two flow process in which we exchange the customer satisfaction by selling our products.

 

Future Trading

A futures contract is an agreement between two parties – a buyer and a seller – to buy or sell an asset at a specified future date and price. Each futures contract represents a specific amount of a given security or commodity. The most widely traded commodity futures contract, for example, is crude oil, which has a contract unit of 1,000 barrels.

 

Spot Trading

spot contract, spot transaction, or simply spot, is a contract of buying or selling a commodity, security or currency for immediate settlement (payment and delivery) on the spot date, which is normally two business days after the trade date.

 

Pip

PIP stands for Percentage In Point. A pip is a very small measure of change in a market.

 

Point

point is the largest price change of the three measurements; it only refers to changes on the left side of the decimal, while the other two include fractional changes on the right. The point is also the most generically used term among traders to describe price changes in their chosen markets.

 

 

Spread

The difference between buying and selling is called spread.

Gold=3 pips

Oil=4-5 pips

Currencies=5 pips

 

Trade Balance

The balance of trade is also referred to as the trade balance or the international trade balance. The balance of trade (BOT) is the difference between a country’s imports and its exports for a given time period. The balance of trade is the largest component of the country’s balance of payments (BOP).

 

Hedge

Investors hedge one investment by making another. Technically, to hedge you would invest in two securities with negative correlations.

Currencies have no edge but gold and commodities have edge. For example. In Gold

If 10 lots of 1 oz.  Buy

Then 1 lot of 10 oz. sell

 

  • Candle Stick Study

Different kind of candles are there

Doji Candle

Marobozo Candle

 

  • Targeted Person

M.A.N

Money. Authority. Need

 

 

  • Products Contracts periods

Crude Oil= 1 Month

Gold= 2 Months (1Month for delivery)

Currencies= 2 Months (1Month for delivery)

 

  • Commission Structure
Commodities Contract Size KC Commission(per contract per side) Contract Period
1.   Oz Gold 1. Oz (One) Rs 40 90 days
   10. Oz Gold 10. Oz (Ten) Rs 350 90 days
 100. Oz Gold 100. Oz (Hundred) Rs 1450 90 days

COPPER

COPPER 1K Pound Rs 40 90 days
COPPER 25K Pound Rs 650 90 days

PLATINUM

PLATINUM 5 Oz Rs 250 90 days
PLATINUM 50 Oz Rs 500 90 days

SILVER

SILVER 100 Oz Rs 50 90 days
SILVER 500 Oz Rs 200 90 days

N-GAS

N-GAS 01 Kg Rs 80 30 days
N-GAS 10 Kg Rs 500 30 days

OIL

Crude oil 10 US Barrel Rs 50 30 days
Crude oil 100 US Barrel Rs 400 30 days
BRENT OIL 10 US Barrel Rs 50 30 days
BRENT OIL 100 US Barrel Rs 400 30 days

                                    CURRENCY

Gold—EURO—USD 10000 300
Gold—GBP—USD 10000 300
Gold—USD—JPY 10000 300
Gold—USD—CAD 10000 300
Gold—AUD—USD 10000 300
Gold—USD—CHF 10000 300
Gold—GBP—JPY 10000 300
Gold—EURO—GBP 10000 300
Gold—EURO—JPY 10000 300

 

  • Comparison between Khadija Commodities and Other Brokers

We have MT5 Software.

No charges of Robot.

Our clients earn maximum Profit.

We have experienced staff.

Suitable Commission Structure.

Focused on profit.

 

  • Account opening and withdraw Process

For account opening, we are required MCB Account Number, ID card, Email and Mobile Number. Then in 24 hours Account will be opened.

For withdrawal, you just have to fill the withdrawal Form and in 48 hours your account will be closed.