General Information
What Is Modalmais?
Modalmis, Part Of Modal Group, Is A Brazilian Digital Bank And Stock Broker That Offers Banking Services And Brokerage Products Such As B3 Listed Stocks, ETFs, Mutual Funds, Options And Futures, Among Others.
Modalmais Offers Multiple Platforms For Different Investment Purposes, Such As MT5, Profit, Tryd, TraderEvolution, Modal Trader, And Modal Mobile App, Among Others.
Trading Tools
- Futures Contracts
How To Invest In Futures?
The Main Products Traded In Futures Contracts Are Corn, Coffee, Soybeans, Live Cattle, The Dollar, The Bovespa Index, And The Standard & Poor 500 Index. These Contracts Are Not Traded At Their Full Value, Which Makes It Possible For Anyone To Invest. Negotiations Are Not About The Product Itself. By Obtaining The Contract, The Investor Buys The Right To Fluctuate In The Value Of The Contract.
Supply And Demand Is What Makes An Asset Fluctuate, Just Like Any Other Investment Security. If You Buy Low And Sell High, You Will Make A Profit. If You Buy High And Sell Low, You Will Lose Money.
The Main Difference Between Futures Contracts And Other Types Of Investments Is Leverage. To Invest In These Contracts, There Must Be A Guaranteed Margin.
This Margin Serves As A Guarantee For Payment When The Market Moves Negative. It Is Approximately 3% To 16% Depending On The Contract.
The Step-by-step Guide For Buying Or Selling Futures Contracts Is The Same As For Stocks. You Go To Home Broker, Select A Contract And Make A Purchase.
Advantages Of Investing In Futures Contracts:
Lever Action: The Possibility Of Highly Leveraged Resources In Search Of Greater Operating Returns
High Liquidity: The Assets Of This Investment Can Be Sold At Any Time
Daily Adjustments: Contracts Are Adjusted Daily. So You Can Know On The Same Day Whether There Is A Loss Or A Profit.
- Mini Contracts
Mini Contracts: What Are They And How To Start Trading?
They Are Futures, Indices And Dollar Contracts Created To Allow Individual Investors To Participate More In The Stock Exchange With Very Little Capital
What Is A Mini Contract?
Among The Advantages Of Futures Market Operations Is The Fact That You Do Not Have To Spend Resources To Negotiate A Contract. However, It Is Necessary To Deposit A Margin With The Operating Intermediary, Which Can Be Quite High Depending On The Contract.
This Can Be A Hindrance For Small Investors. Therefore, In 2001, The Then BM & F (Commodity And Futures Exchange) - Later BM & FBovespa And Now B3 - Began Trading Mini-contracts.
These Assets Perform The Same Function As Standard Contracts: They Represent Buy-sell Agreements For Commodity Derivatives, Indices, Interest Rates And Currencies At Future Dates, But Because Of Their Smaller Size (equivalent To 20% Of The Full Contract), Their Exposure And Leverage Became Smaller, Which Made The Margin Covered Lower Than The Margin Of Their Corresponding Full Contract.
Advantages Of Using Mini-contracts For Trading
Mini-contracts Have Many Advantages, Including:
High Liquidity: Mini-contracts Are Highly Liquid Assets, So Investors Can Easily Enter And Exit As Well. When He Wants To Transfer Assets, The Risk Of Not Having An Interested Counterparty Is Greatly Reduced.
Leverage: B3 Requires Investors To Have Margin To Trade Contracts And Mini-contracts, So There Is No Need To Consider All The Funds Related To The Volume Of The Contract. For Day Trading, We Offer Lower Margin For USD (WDO) And Index (WIN) Mini-contracts, Thus Enabling Investors To Make More Use Of Their Capital.
Diversification: One Of The Outstanding Advantages Is The Possibility To Diversify, As There Are Multiple Financial Instruments In This Asset Class. To Give You An Idea, B3 Currently Allows The Trading Of Mini-contracts In Bovespa, Standard & Poor 500, USD, EUR And Soybean Indices.
Low Operating Costs: Today, At Modalmais, You Can Invest In Full Contracts And Mini-contracts From ZERO Brokerage! In Addition, The Fees For Mini-contracts (e.g. Compensation) Are Usually Lower Than Those For Full Contracts.
Features Of The Ibovespa Index Mini Contract
Contract Size: R $0.20 Per Index
Point, Quote: Defined By Index
Points, Expiration Date: Even
Months, Minimum Change In Announcement: Five Index Points (Quote Changes Every 5 Points)
Look At The Quote: In The Index Futures Contract, Each Point Is Equivalent To R $1, While In The Mini-index, Since It Is Equivalent To 20% Of The Full Contract, The Value Of This Point Is R $0.20.
Suppose You Buy Two WIN Contracts At 110,100 And Sell Them At 110,500, Your Total Result Would Be R $160. Please Follow These Calculations:
(110,500 - 110,100) X 0.20 X 2 = $160
Characteristics Of USD Mini Contract
Contract Size: 10,000
USD, Quote: 1000
USD Real Valid Period: Monthly
Minimum Bid Change: 0.50 Reais Per 1000 USD (Quote From Half Point)
Mini USD Is Equivalent To 20% Of USD Futures Contract, Which Represents A Buy Or Sell Of 10,000 USD. In A Full Contract, The Size Of The Contract Is Equivalent To $50,000.
It Is Important To Note That The Contract Offers Change Daily, However, The Technical Features Discussed Above Remain The Same. In A WDO, Each Point Is Equivalent To R $10, While In A Full Contract, It Is Equivalent To R $50.
- Minidollar
What Is Minidollar?
There Are Two Ways To Reduce The Risk Of Trading Minidollar. One Is To Diversify Your Portfolio.
First. Never Invest 100% In A Single Asset.
Secondly, Your Risk Decreases Proportionally According To The Size Of The Knowledge You Acquire About The Asset.
Basically, Mini-dollars Are Often Used To Hedge Against Volatility And Even For Speculation, Whether You Are A Buyer Or A Seller.
To Better Understand, Consider That The Dollar Offer Is R $4.00 And You Want To Travel Next Month, Expect The Dollar To Rise To R $4.30.
Since The Gift Offer Is Value For Money For You And Fits Your Travel Plans, You Can Use Mini-contracts To Guarantee Your Dollar.
Therefore, You Can Buy The Mini USD Contract To Buy The Currency That Expires Next Month At The Price Of R $4.00.
The Above Is Called Currency Hedging. Many Companies And Investors Use It To Protect Themselves From High Or Low USD Prices.
- Mini Index
Mini Index Is A Futures Contract For The Ibovespa Index, Which Trades At A Lower Price Than The Futures Index.
Mini Index Contract Trading Platform
To Trade Mini Index, You Need To Use The Trading Platform. Through This Platform, You Will Be Connected To B3 And You Will Monitor Quotes, Trades And Send Your Orders.
Before Focusing On Your Trading Platform, You Need To Pay Attention To The Following Points:
Platform Stability
Price
Cost
Support
Features
At Modalmais, You Offer The Most Complete Shelf Of Day Trading Platforms. In Addition, Modalmais Is The First Broker In Brazil To Offer DMA4 Technology For Retail!
