Why Choose to Trade With Instruments Specification in AI Trading?

When a trader chooses to trade with instruments specifications, they are typically referring to the detailed information about specific financial instruments, such as stocks, commodities, currencies, or indices. These instrument specifications provide vital details about the trading conditions and characteristics of each financial asset, and there are several reasons why traders should pay close attention to these specifications:

Clear Understanding

Instrument specifications help traders gain a clear understanding of the asset they are trading. It provides essential details about the underlying asset, such as the name, ticker symbol, and the exchange where it is traded.

Trading Hours

Instrument specifications provide information about the trading hours of the asset, including the specific times during which the market is open for trading. This is especially important for assets traded in different time zones.

Contract Size

For derivatives and CFDs, the contract size specifies the notional value of one contract. This information is crucial for determining the position size and the potential risk exposure of the trade.

Tick Size and Tick Value

The tick size refers to the minimum price increment by which the asset’s price can change. The tick value specifies the monetary value of one tick. Traders use this information to calculate profits and losses accurately.

Leverage and Margin Requirements

For leveraged products like CFDs, the instrument specifications will outline the leverage offered and the corresponding margin
requirements. Understanding leverage and margin is vital for managing risk effectively.

Spread and Fees

The spread is the difference between the buying (bid) and selling (ask) prices of an asset. The instrument specifications will detail the spread and any additional fees or commissions associated with trading that asset.

Expiration Dates (For Futures and Options)

If trading futures or options contracts, traders need to be aware of the expiration date of the contract. The instrument specifications will provide this information, and traders must manage their positions accordingly.

HIGH RISK WARNING: Dealing or Trading FX, CFDs and Cryptocurrencies is highly speculative, carries a level of non-negligible risk and may not be suitable for all investors. You may lose some or all of your invested capital, therefore you should not speculate with capital that you cannot afford to lose. Please refer to the risk disclosure below. traderai.ai does not gain or lose profits based on your activity and operates as a services company. traderai.ai is not a financial services firm and is not eligible of providing financial advice. traderai.ai shall not be liable for any losses occurred via or in relation to this informational website.
SITE RISK DISCLOSURE: traderai.ai does not accept any liability for loss or damage as a result of reliance on the information contained within this website; this includes education material, price quotes and charts, and analysis. Please be aware of and seek professional advice for the risks associated with trading the financial markets; never invest more money than you can risk losing. The risks involved in FX, CFDs and Cryptocurrencies may not be suitable for all investors. traderai.ai doesn’t retain responsibility for any trading losses you might face as a result of using or inferring from the data hosted on this site.
LEGAL RESTRICTIONS: Without limiting the above mentioned provisions, you understand that laws regarding financial activities vary throughout the world, and it is your responsibility to make sure you properly comply with any law, regulation or guideline in your country of residence regarding the use of the Site. To avoid any doubt, the ability to access our Site does not necessarily mean that our Services and/or your activities through the Site are legal under the laws, regulations or directives relevant to your country of residence. It is against the law to solicit US individuals to buy and sell commodity options, even if they are called ‘prediction’ contracts, unless they are listed for trading and traded on a CFTC-registered exchange unless legally exempt. The UK Financial Conduct Authority has issued a policy statement PS20/10, which prohibits the sale, promotion, and distribution of CFD on Crypto assets. It prohibits the dissemination of marketing materials relating to distribution of CFDs and other financial products based on Cryptocurrencies that addressed to UK residents. The provision of trading services involving any MiFID II financial instruments is prohibited in the EU, unless when authorized/licensed by the applicable authorities and/or regulator(s). Please note that we may receive advertising fees for users opted to open an account with our partner advertisers via advertisers’ websites. We have placed cookies on your computer to help improve your experience when visiting this website. You can change cookie settings on your computer at any time. Use of this website indicates your acceptance of this website.