Based on the past trend, active clients shall receive an email daily, outlining major buying and selling points for actively traded commodities and currencies. Please note that this is merely a guideline and investors shall trade entirely on their own risk.

Telephonic guidelines may also be received from us at 0332-9609919 (what’s app active) during working hours (Mon to Fri; 11 A.M to 5 P.M).

How do I withdraw funds?

You will place a funds withdrawal request by logging into your “Client Portal”. When your withdrawal request has been approved by Nachfolger (max 1 day), PMEX will directly credit the withdrawal amount to your “Client Profile” approved designated bank account, within 2 banking days.

However, payment requests to third parties and any bank account other than your “Client Profile” approved bank account are not entertained.

What is the process of conversion from USD to PKR?

Rates are quoted on PMEX mostly in USD or other foreign currencies in case of Forex pairs (where USD is not involved). At the point of trade or when taking positions, the USD is converted to and from PKR. The applied conversion rate is State Bank of Pakistan’s Mark-to-Market Revaluation Exchange rate for the previous day. This rate is published daily on SBP website for all major foreign currencies.

What is a bullish and bearish market?

A bullish market is characterized by rising / spiking prices. On the contrary, when the price is declining in the market, it is said to be in bearish state. Both terms are unique to commodities and equity markets and are used solely to depict the price trend.

What is meant by short selling?

This trade is conducted opposite to a buying entry. If a trader feels that the price of a commodity is likely to decline, the exchange permits him to sell that commodity in advance without having it. If his assessment proves correct and the price does decline, he purchases back the sold commodity at a price lower than the sale price. This difference in the sale and purchase price becomes the trader’s profit. Market moves as a result of a constant struggle between these buyers and sellers.

What is meant by G.T.C?

G.T.C stands for Good Till Cancelled. Unlike a conventional order that is valid only for the day, this order (buy or sell) remains valid either till execution, cancellation or contract expiry. This type of order is independent of trading day.

What is Nachfolger’s Commission structure?

We have designed a very competitive commission structure for our clients. Commission is charged on both sides of the trade; buy and sell. Commission is charged irrespective of whether the trade results in profit or loss.

Are there any charges for opening an Account?

There are no charges for opening a trading account with Nachfolger. Further, we do not charge any account maintenance charges from our clients whatsoever.

How is trading at PMEX better than Stock Exchange (PSX) ?

Pakistan’s stock exchange is highly prone to manipulation by a handful of high net worth individuals and financial institutions. On the contrary, PMEX is integrated in real-time with the International Commodities and Forex market, where daily traded value is in Trillions of US Dollars, that is immune from various forms of uncertainties in Pakistan.

After I transfer funds, when can I trade?

If you transfer funds online to PMEX bank account within banking hrs (9 AM to 5 PM), the amount will be allocated to your trading account on the same day. It normally takes about 30-60 minutes.

In case you transfer funds to PMEX bank account after banking hrs, the amount may be allocated to your trading account on the following banking day.

If you use cheque as the mode of deposit, funds will be credited to your trading account after the cheque has been cleared from your bank account and the funds have been received in PMEX designated bank.

What is the guarantee that my funds will not be misused?

Under the Direct Funds Model, the role of broker in receiving or disbursing your funds has been fully excluded. Now, you will deposit Initial Margin directly in a PMEX bank account. Similarly, your withdrawals will be credited by PMEX directly to your designated bank account specified in “Client Profile”.

You have round the clock access to your General Ledger (GL), which is accessible via Client Portal. It contains the details of every deposit and withdrawal / deduction from your trading account, along with account head.

What charges do I pay upon trading?

All charges become due only once you execute a trade in your account. This is the break-up of charges:-

1. P.M.E.X Fee – Charged Per Lot, Each Side (Buy and Sell) in Rs.
2. Nachfolger Commission – Charged Per Lot, Each Side (Buy and Sell) in Rs.
3. Capital Gains Tax (C.G.T) on Gross Profit – 5% in case of Filer and 10% in case of Non-Filer
4. Tariff on C.G.T Related Services – Depends on Net Traded Value (Rs.250 to 10,000) per Fiscal Year

Every client has 24/7 access to his trading account’s General Ledger (GL) via Client Portal. Your GL will contain a head wise detail of all the charges deducted from your trading account.

How long can I carry my position and are there any charges?

Position in any contract can be held till its pre-defined expiry date. There are no charges for carrying the position over to the next working day, or any number of days. However, once you switch your position from one contract to the other, then charges would apply. This generally happens when a trader switches the position from an expiring contact to the freshly opened contract.

How is commission charged?

P.M.E.X Fee and Nachfolger commission are charged per lot and on both sides of the trade, i.e buying and selling in Rs. However, it is irrespective of number of days the position is held. These charges remain unchanged, even if the position is squared / closed on the same day. Commission is charged regardless of whether the trade resulted in profit or loss.

Can I trade US Equity Indices through PMEX?

3 US Equity Indices which include DOW Jones Industrial Aveage (DJIA), Standard and Poor’s 500 (S&P 500) and NASDAQ 100 can be traded through P.M.E.X. This is an excellent opportunity for local stock traders as US equity indices are far more reliable than the local stock exchange (PSX).

What is “Bid” and “Ask”?

.”Bid” represents the price at which a buyer is readily available in the market. When we are selling some contract, we will consider the bid price.

“Ask” is the price at which the lowest seller is readily selling the commodity in the market. When we are buying a commodity, we shall consider the ask price.

To sell, consider the bid price and to buy, always consider the ask price is the rule of thumb. A trader is not bound to execute his trade on the prevailing price; he may specify a price of his own liking which is known as a Limit type order.

How are commodities and currencies traded at P.M.E.X?

All commodities and currencies are traded in the form of Contracts which are regulated directly by P.M.E.X. Traders trade in contracts in the form of Lots. Minimum lot size for the contract of any commodity / currency pair is 1. Each contract has a pre-defined expiry date. When the current contract of any commodity is nearing expiry, a parallel new contract for the same commodity is opened by P.M.E.X. This enables traders to easily shift their position from expiring contract to the fresh contract; if they desire so.

How do I shift over my position from an expiring contract?

You will simply square / close your position in expiring contract and take a fresh position in the newly opened contract. It is entirely upon the trader’s own discretion whether he wants to roll over the position to the next contract or otherwise.

What if I can’t square my position in an expiring contract?

On the last day of a contract’s expiry, each trader has till 4:00 PM to square the position, failing which the position (long or short) is self liquidated at a universal “settlement price” determined by P.M.E.X. This price is generally close to the price prevailing around the closing time of 4 PM.

Will my trading account be maintained in Pak Rs.?

Your trading account shall be entirely opened and maintained in Pak Rs. All deductions from your account such as Fees and Commission shall also be in Pak Rs. Your trading however, shall take place in USD as international prices of most commodities are quoted in USD.

What is the validity period for any contract?

It varies with each commodity but is predefined for the convenience of traders. It generally ranges b/w 4 – 8 – 12 weeks, depending on the commodity.

How do I gain preliminary knowledge of futures trading?

For your convenience, we have a You Tube channel by the name of Nachfolger (Pvt.) Ltd. It contains a wide range of informative and instructional videos that not only educate you about futures trading but also explain trading strategies along with Do’s & Don’ts of this business. Link to our channel is available on the website’s homepage.

Can I manage my Trading Account via Smartphone?

Yes, PMEX has introduced a state of the art international trading platform known as Meta Trader 5 or MT5. This platform enables traders to fully manage their accounts across PCs, Smartphones and Tablets (Android and iOS based). MT-5 has a host of technical indicators that can be implemented on commodities / currencies / indices to maximize gains and manage risks.

What is Initial Margin?

Initial Margin is the nominal sum (3-8%) in Rs. of the contract’s total value that is required in advance to open a position in that contract of any commodity. It varies across commodities and is determined / revised by PMEX from time to time. Futures trading in commodities is conducted on margin and it is an international practice.

What are the major Price Trends?

The 3 major price trends are:-

1. Uptrend:- When both the highs and lows of the commodity price are consistently increasing / rising.

2. Downtrend:- It is characterized by declining highs and lows with consistency.

3. Sideways:- Also known as range-bound or directionless trend. When the price consistently oscillates in a certain limited channel without clearly making new highs or breaching recent lows.

What is Stop Loss?

It is a built-in safety measure that enables a trader to timely exit an unfavorable trade. It caps your loss in any trade beyond the specified price threshold. It can be placed for both long and short positions. Trading with stop loss is strongly advised for all traders, especially newcomers.

What is the preferred road map to Live Trading?

Preliminary Study (F.A.Qs, Glossary and You Tube Channel Videos) → Live Account with 20-25% of your Total Planned Investment for 3-6 weeks  → Evaluation of Performance → Feedback of Nachfolger → Enhance the Investment to the planned level as per recommendation.

What are the common mistakes of traders?

Traders tend to:- Use maximum allowed leverage (anywhere b/w 20-50 times of actual investment), overtrade, impulse trade, get influenced from other traders, trade purely on personal whims, avoid the use of technical indicators and repeat old mistakes.

We reiterate that trading is an evolutionary process in which traders constantly need to remain vigilant and improve their trading skills over time.

How much return can I expect on my investment?

With an investment of Rs.1 lac, without assuming too many risks, a net return of Rs.5-8 th can be generated per month (22 working days approx.). Actual return may vary depending on your trading temperament and risk preferences.

The rate of return on futures trading is directly proportional to RISK.

How many accounts can an individual open with the Broker?

Each individual can open and maintain 1 trading account with each PMEX broker. You can open a trading account with as many PMEX registered brokers as you may like.

What is Threshold / Auto-Liquidation Threshold?

At P.M.E.X, futures trading is done on margins. However, 100% of the Initial Margin (INMR) must be maintained by traders at all times. The auto liquidation threshold is 21% of the PMEX prescribed margin for any tradable item. Once a trade goes against you and the running balance / liquidity of your trading account falls to a level such that its near or equal to 21% of the PMEX defined margin, auto liquidation would be self triggered. As a result, all our open positions will be automatically liquidated without any prior notice.

What trading platform is being offered by PMEX?

PMEX has fully migrated to the Meta Trader 5 / MT5 trading platform. It is an internationally recognized trading platform which is fully compatible with these devices:-

1. Smartphone & Tablet – Android and iOS Operating Systems are supported
2. Laptop & Desktop PC – Microsoft Windows Operating System

You can simultaneously login to your trading account over any number of supported devices.