Unfortunately no! Full list of exchanges available for trading in Luminor Trade platform you can find here. But you can trade stocks listed on NASDAQ OMX Baltics exchanges through your i-bank.
You should choose currency which you are planning to trade the most. For example, if normally you are trading on European exchanges, EUR account currency will be the most suitable for you. If you are trading marginal instruments, then account currency question is not that important.
Yes, you can. But it is important to note, that when trading instruments quoted in different currencies, currency conversion is made with 0.5% margin.
Stock and CFD prices are delayed by 15 minutes in order to remove from the client any costs associated with real-time exchange market data. If you want to receive real-time data, you need to subscribe to it. This can be done in the platform by pressing Account Subscriptions -> Manage Subscriptions and choosing from the list exchanges from which you would like to receive real-time market data.
Yes, theoretically it is possible. Let’s look at the example.
Let’s say you have 1000 USD, which we use to purchase 50 IBM stock CFDs trading at 200 USD per share.
As IBM CFDs offer 1:10 leverage, we will have 100% margin utilization (1000 USD (Margin requirement)/1000 USD (account value) =100%).
Please pay attention, that margin requirement can be calculated dividing nominal value of the position by the leverage (10 000 USD / 10 = 1 000 USD).
If margin utilization reaches 150%, your position will be automatically closed – in our example this will happen when your account value falls to ~1000 / 1.5 ~666 USD. Or in other words, if IBM stock price will drop by 6.66 USD to 193.34 USD thus create 333 USD loss.
But what happens if IBM price drops with the gap from 200USD to 190 USD? (Most of the time drops like this may occur at the beginning of new trading session)
Margin utilization will be 200% (1000 (margin requirement) / 500 (account value)), and of course position will close not at the 193.34 USD, but at the first available price 190 USD.
Due to this drop in price, your account balance after closing position will be 500 USD, and not 666USD.
If IBM stock price at the beginning of the session will trade below 180 USD then you will not only lose your 1000 USD, but will owe some money to the bank too.
For example, if IBM stock price opens at 170 USD, you will lose your 1000 USD and still owe 500USD to the bank.
It is important to note, that you can reduce this risk by:
- Trading very liquid instruments – big price gap, for example, in Microsoft stock price is less probable then for some small not very liquid company.
- Diversifying your investment, then occasional price gaps will not have so big effect on your account value.
- Trading instruments which trading is not closing that often, or at least not for such a long time. As an example, Forex market is closing once a week, while stock markets are closing 5 times a week.
No. Instead, the insurance of liabilities to investors’ scheme is applicable to the funds held on Luminor Trade platform. The maximum compensation of the insurance of liabilities to investors is 20 000 EUR.
Yes, using Luminor Trade platform you can trade futures on Euronext Commodities Derivatives (MATIF) exchange, and thus hedge yourself against adverse price fluctuations. It is often used by agricultural companies, commodity trading companies, and other market participants.
It is important to note, that all futures trades are cash settled.
Yes, you can use Luminor Trade for long term investment just as for speculation purposes. Furthermore, conditions for long term investment are very favourable as currently we have no platform or custody fees.
Unfortunately you cannot make physical currency conversion in the platform. You can use platform for investing, risk hedging and speculation.