Domain Futures Trading Explained
Domainindex SARL allows you to trade Domain Indices in real time on our platform. In the following step we will explain how to proceed if you wish to trade.
1) Create a login to Domainindex. After the Login procedure, you will be asked to verify your email address.
2) Fund your account. The Minimum amount required to trade is 500 USD. There is no maximum for the deposit but the market has its limitations and you might not always be able to trade if you intend to trade with more then 50,000 USD; more about this later. You may fund your account via pay pal, moneybookers, neteller or by wire transfer into our account. As soon as your funds are received you are ready to trade.
Currently the Domain Index Futures trading is in beta and can be used with virtual money only, once we have collected more experience and finished the developement we will enable the trading with real money. The trading Interface of Domainindex enables Investors and Domainers to make use of real time Domainindextrading.There are 6 different indices to be traded, long or short.
3) We offer 6 different Domain indices for trading, each of them has different underlying domains and therefore behaves different. The indices are constantly recalculated. They are influenced by:
- -Domain deals in the secondary markets
- -Number of registrations
- -Keyword statistics, search and queries
- -Keyword media appearances
- -Domainindex appraisals of the Domains
We retrieve more then 800.000 datasets every day to ensure accurate calculation of the indices; therefore prices can change up to 10x each second. We offer minute charts for these indices but you can observe every change on the trading page as well.
4) You will see 2 different prices for selling and buying of contracts, this is usually called the spread. The spread depends on the market. If the volatility is high the spread will be higher too. Also if there is a lot of demand in the market the prices of the index can be much higher then the underlying index. On the other side if expectations are that the index will loose value, prices can actually be lower than the underlying index value.
5) When you are ready to trade, choose the Index you would like to buy or sell. First select the amount of contracts you want to buy or sell. Next decide to buy or to sell. You will now be asked if you are sure and informed how much funds will be used as a margin. Click ok to close the deal and buy or sell contracts.
6) You can now place stop loss and gain limits. As soon as the price reaches these levels the position will be closed. If you wish to terminate a position simply press close and the position will be closed, the remaining margin will be recredited to your fund balance.
7) If you want to withdraw money, you can do this via pay pal, moneybookers or a transfer to your bank account.