Forex Trading

If account balances become negative due to Stop-Out, Lime FxFx compensates the account by adjusting the account balance to zero, ensuring the risk is limited to only deposited funds. Although Lime FxFx is regulated by just 2 regulatory bodies, it does business in multiple jurisdictions worldwide. It prioritizes its clients’ account safety by keeping clients’ funds in segregated bank accounts. Lime FxFx employs state-of-the-art technology and advanced security protocols, which includes SSL web encryption and two-step authentication to protect clients’ confidential data.

Is Lime Fx a good broker?

Lime FxFX is licensed and regulated by FSA SVG license number #19776 IBC 2011. Both MetaTrader limefx official site MT4 and MT5 stand out for the charting tools they offer. The standard MT4 package, for example, comes with 30 built-in indicators, over 2,000 free custom ones on offer and 700 available for purchase.

Trading Fees

It is easy to set up to trade ‘algo’ models on an automated limefx official site basis, and it offers the expert advisors and MQL5 support services that allow traders to draw on the ideas of others. Forex pairs, metals, indices, energies and cryptos are all available, but traders looking for single stock names will be disappointed. With less than 100 instruments on offer, there is no space for the more complex instruments such as options found in the quieter corners of the financial markets. Lime FxFX’s award winning customer support team is available 24 hours a day from Monday to Friday.

Spreads and Fees ⚖

The best part is that most of the content is free of charged and can be viewed on the firm’s website. So, if you’re a beginner, why not give yourself a leg up before going head first into the world of trading? If you need some support outside of the hours or would prefer to get a quick answer yourself then there is an FAQ’s page with a range of relevant questions and answers. Though, if possible, seen as the team is so quick and efficient you might be better off just reaching out to them first thing.

Customer Support ☎

All the background materials are of high quality, and the videos are supported on YouTube. Likewise, Mauritius is considered Tier-4, as per our Trust Score algorithm. The security of your funds – in terms of regulatory protection – will depend on which Lime Fx entity holds your account, and which, if any, relevant regulations provide customer protections. It’s worth noting that Lime Fx’s primary execution venue is one of its own entities in St. Lucia.

Account Setup Process

The spreads for both the MT4 and MT5 accounts are floating and start at 0.7 pips. Clients using the Lime FxTrader, MT4 or MT5 account do not have to pay swaps. Lime Fxfx is a great trading platform, very easy to use and deposits and withdrawals are relatively fast depending on time of day.

• We hope, with these insights, anyone interested in Lime Fx trading opportunities could decide whether to invest in them or not.
• With 300 markets I found Lime Fx provides the major financial instruments most traders would focus on such as forex majors, gold, stocks like Tesla, or cryptocurrencies like Bitcoin.
• Withdrawals must be made using the same methods as deposits, meaning all available deposit methods can also be used for withdrawals.
• Your satisfaction is our top priority, and it is gratifying to know that we have met your expectations.
• Lime Fx has over 50 different payment options, such as Visa, Neteller, Fasapay, and bitcoin, as well as a large variety of local bank transfers.
• These are amongst the best trading platforms available for online trading that you will find anywhere.

Copy Trading Review

• Lime Fx is geared towards beginner and intermediate traders, providing user-friendly platforms such as MetaTrader 4, MetaTrader 5, and its proprietary Lime FxTrader.
• The slight difference between ECN and DMA in terms of the liquidity provided is that the typical ECN brokers liquidity providers are not known.
• There are also daily and weekly forecasts that cover the financial markets in great detail.
• Various account types on the 3 platforms have different deactivation dates as stated below.
• On Lime FxFx, customers can withdraw funds from their trading accounts using the same ways they deposited.
• A highly regulated broker will offer you more protection and safeguard you from fraudulent behaviour, or in the case of insolvency.

Customer support is provided via online chat, telephone and email in English, Indonesian, Malay, Thai, Hindi, Urdu. They claim that a small percentage of clients actually contact customer support as their services are usually smooth and reliable enough. However, should you need them, they are there to answer your general and technical questions in a prompt and efficient manner.

Rates, terms, products and services on third-party websites are subject to change without notice. We may be compensated but this should not be seen as an endorsement or recommendation by TradingBrokers.com, nor shall it bias our broker reviews. Lime Fx offers the full MetaTrader suite, albeit with a fairly limited offering of tradeable instruments.

On the other hand, the Income Tax Act only allows the WDV method and provides opportunities for accelerated depreciation on certain assets to reduce tax liabilities on the taxpayers. It is essential for businesses to understand the difference in the rate of depreciation of assets between the two statutes. By doing so, companies can optimize their depreciation claims, reduce tax burdens, and maintain accurate financial records.

• This depreciation amount is used in determining the value of an asset at the end of its useful life.
• These costs cannot be directly recognized as an expense when they are incurred as they help in generating revenue for more than a year.
• Machinery used in the production and exhibition of cinematograph films; developing machines; printing machines; recording and reproducing equipments; synchronisers; editing machines and studio lights (except bulbs).
• A company can depreciate most of the tangible assets like Building, Machinery, Vehicles, Furniture and Fixtures, Computers and Equipment and intangible assets like Patents, Copyrights and Computer Software.
• You may refer to the depreciation rate chart for useful life of other assets.
• Salvage value refers to the value of an asset when it reaches the end of its useful life.

The depreciation claim can be made while filing your Income Tax Return (ITR) under the “Schedule DEP” section, provided the asset is used for business. Depreciation is claimed in the year when you buy a new asset, and if you sell an asset, depreciation is claimed only until the date of sale. The depreciation rate applicable to these vehicles differs depending on the years they are used. The total depreciation amount can be calculated using a car or bike value calculator.

Methods of Depreciation under the Companies Act

● A company cannot change the method of computing depreciation from SLM to WDV or vice versa. “Continuous process plant” means a plant which is required and designed to operate for twenty-four hours a day. (b) after retaining the residual value, shall be recognised in the opening balance of retained earnings where the remaining useful life of an asset is nil.

You may refer to the depreciation rate chart for useful life of other assets. The difference in the amount of depreciation as per companies act and income tax act results in Deferred Asset or Deferred Liability. Deferred Asset or Deferred Liability is shown in the balance sheet of the company. As per accounting standard 6 (AS 6), it is mandatory to claim depreciation as per companies act because it has a significant effect in determining and presenting a company’s financial position and results. In addition to this, charging depreciation becomes mandatory if the company desires to declare a dividend or pay managerial remuneration.

• The company is required to disclose in its annual financial statements the method used for calculating depreciation.
• Thus, the resale value of the car will always be less than the price at which it was bought.
• In the absence of this determination, companies would have to include the purchase value of all the assets as they were on the day they were bought or developed.
• Further, Part C of Schedule II makes provisions for mandatory disclosure requirements.
• Using an online car or bike depreciation calculator accessible from several insurers will help you consider what worth your vehicle presently retains, depending on the current market pricing.
• As the name suggests, the double declining balance method uses the method of depreciating the value of assets twice at the rate at which they are depreciated under the straight-line method.

Under the Income Tax Act, intangible assets like patents are eligible for depreciation at a rate of 25%. Under the Income Tax Act, all similar assets (such as plant and machinery, vehicles, or furniture) are grouped into a block. Depreciation is then calculated on the aggregate value of the block rather than on individual assets. This makes the process simpler, as it eliminates the need to calculate depreciation for each individual asset.

This calculator considers its market value from the commencement of the policy. The depreciation on car as per companies act value of your car or bike continues to decrease after five years, although being dependent on its condition and serviceability. Importantly, extra shift depreciation will not be available for the assets specifically marked as NESD (i.e. No Extra Shift Depreciation) in part C of schedule II. The primary method for steady depreciation is the straight-line method.

A company can choose a method of computation based on its useful life and repair cost to be incurred. The Companies Act of 2013 provides a method for corporate financial reporting in India. Under this Act, businesses must follow certain guidelines when calculating depreciation for their assets. The age of your car or bike helps determine the applicable depreciation rate. Below is the car depreciation rate chart, discussing in detail all percentages applicable as per the life value of assets.

However, buildings, machinery, and other assets related to land usage are eligible for depreciation. While buildings or machinery might lose value over time, land tends to appreciate in most cases and is therefore not subject to depreciation under the Companies Act. Where a company arrives at the amortisation amount in respect of the said Intangible Assets in accordance with any method as per the applicable Accounting Standards, it shall disclose the same. Revenue shall be reviewed at the end of each financial year and projected revenue shall be adjusted to reflect such changes, if any, in the estimates as will lead to the actual collection at the end of the concession period.

Provisions specified under Schedule II of Companies Act, 2013

But at the same time, you have to understand that with time the car ages and its value depreciates. As soon as you bring your vehicle out of the showroom, the value depreciates by 5% and gradually keeps on falling with each passing year. This depreciation amount is generally considered when you buy or claim insurance for your car or bike. Of the various methods and rates of depreciation prescribed in the Income Tax Rules, specific reference must be made to Rule 5 and Appendix I. Accounting standards present multiple methods for depreciation.

(h) Plant and Machinery used in manufacture of non-ferrous metals

If we do not use depreciation in accounting, then all assets have to be expensed out once they are bought. This will result in huge losses in the initial period and high profitability in periods when the revenue is booked without an offsetting expense. It specifies that intangible assets shall be amortized as per the provisions of AS – 26 (Intangible Assets). AS – 26 specifies that intangible assets should be amortized in the ratio of future economic life of the asset. The company was charging depreciation on the Straight-line method @ 1.63% as per the rate of depreciation prescribed in the Companies Act, 1956.

If you wish to calculate your IDV during this period, the depreciation rate applicable is 20%. The depreciation rates applicable to different assets are listed under the Companies Act 2013, Part “C” of Schedule II. When you buy a car or bike, its value diminishes slowly with time due to natural wear and tear. It is the reduced estimated value of a fixed asset within a financial year.

Methods of Depreciation as per Companies Act

If residual value is taken as 5% of cost of asset and life as per schedule – II then the depreciation rates on SLM and WDV basis are given in following link. Section 123 of the Act talks about the declaration and division of dividends. It makes a mandatory provision that the dividends can only be paid after calculating the profits of the company (as per Section 198) for that financial year and only after the depreciation has been deducted. Section 123 is a guiding provision for the calculation of depreciation and makes it mandatory that it is deducted from the total revenue as per any or all of the provisions of the Act which require the deduction of depreciation.

Mandatory ISD Registration Under GST from 1st April 2025

Consulting with professionals is essential and advisable to ensure the best approach is taken in managing depreciation for long-term growth and compliance. Determining depreciation is essential for a company, as it helps them understand the depreciated amount in their profit and loss account and, therefore, compensate for these losses. This depreciation amount is used in determining the value of an asset at the end of its useful life. Depreciation is considered a “business expense” while determining the profit-and-loss statement of the company in a given financial year. Depreciable assets can be tangible, such as buildings, machinery, furniture, vehicles, etc., or intangible, like copyrights, patents, and software of the company.

The IDV calculator instantly furnishes proper assessment based on your car’s age, condition, and mileage. Motorcycle, scooter, motor car or bike used other than in a company to run them on hire. The vehicle must be acquired after or on 23rd August 2019 but before 1st of April 2020 and used before 1st of April 2020. Therefore, in this article, we will be guiding you in detail on how depreciation on your car or bike is calculated, as well as provide some examples.

It is pertinent to note that the rate of depreciation under the Income Tax Act of 1961 depends on the Union Budget of each Financial Year. The Income Tax Act of 1961 deals with how businesses should account for depreciation to reduce taxable income and save on taxes. The rules for depreciation under the Income Tax Act differ from those under the Companies Act in several ways, especially when it comes to rates and methods. To calculate the depreciation of your bike, you can use IDV calculators available on the websites of different insurance providers. The IDV of your bike is generally not calculated based on the price of the vehicle during purchase.

As per the Companies Act, a maximum of 5% of the asset is allowable as residual value. As per the companies act, the residual value of an asset should not be more than 5% of the asset’s original cost. As per companies act, the residual value of an asset should not be more than 5% of the asset’s original cost. Residual value of an asset must not be more than 5% of the asset’s original cost.

Liquidity can change due to market hours (with major sessions typically having higher liquidity), economic events, news releases, or shifts in trader sentiment. During major news events, liquidity can temporarily dry up as market makers step aside to avoid unexpected volatility. Market structure changes, such as the introduction of new regulations or trading platforms, can also impact liquidity levels over time. The more active buyers and sellers participating, the more liquid that market becomes.

MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… Discover the difference between our account types and the range of benefits, including institution-grade execution. Over the years, I’ve built a community of over 200,000 YouTube followers, all striving to become better traders. Create custom alerts for liquidity sweeps and grab patterns with advanced charting tools.

Attraction for Market Participants

A narrow bid-ask spread also signals that there is a constant flow of orders; because there is always a counterparty available, the cost of executing a trade remains low. While understanding these concepts is valuable for all traders, beginners should practice identifying them on charts before risking real capital. These strategies require a solid understanding of market structure, support/resistance levels, and proper risk management. Beginners might consider starting with higher timeframes (daily, 4-hour) where the patterns develop more clearly and there’s less market noise compared to lower timeframes. With liquid markets, you can easily enter and exit positions whenever you want, giving you more flexibility and control over your trading strategy.

Their operations are integral to the proper functioning of a liquid market as they bridge the gap between buyers and sellers. The answer is that it’s the asset that you can most easily convert into cash at a fair asking price. Assets with the most liquidity are those that are easily convertible into cash without their market price being affected.

A high spread means more of your capital is eaten by transaction costs since you’ll eat the difference between the bid and the ask on the trade. In times of financial uncertainty or market volatility, a liquid market offers reassurance that assets can be traded hitbtc exchange review without causing drastic price fluctuations. When investors know they can sell assets quickly if needed, they are more likely to enter the market, contributing to a self-reinforcing cycle of liquidity. In a liquid market, trades are executed at rapid speeds, minimizing the time investors must wait for order fulfillment. This quick execution is vital in volatile market environments where prices can change rapidly. The immediacy of trades in liquid markets ensures that investors can capitalize on market movements without delay, which is especially important for high-frequency trading strategies.

• Microcap penny stocks frequently trade with massive price volatility, while more liquid large caps tend to have less drastic price swings.
• This quick execution is vital in volatile market environments where prices can change rapidly.
• In such a market, assets can be easily bought or sold without significantly affecting their prices.
• Due to the liquid nature of the market, the conversion process is efficient and straightforward.

These stocks, often referred to as liquid stocks, can be traded in large quantities with minimal impact on their market price. The term “liquid market” has its roots in the financial realm for describing markets where assets can be easily bought or sold without significantly impacting their prices. Initially rooted in the ease of converting assets to cash without devaluing them, this concept gained traction as modern financial markets evolved.

The most liquid asset is cash, which you can instantly exchange for goods and services at any business in the country. Financial advisors usually recommend having liquid funds for emergencies, like a savings account that earns minimal interest, but you can tap it immediately if a large expense pops up. Less liquid assets would include real estate, which earns a higher return (usually) but comes with a costly and time-consuming transaction process.

Liquid Market: Definition, Benefits In Trading, And Examples

If you’re looking to minimize your liquidity risk as much as possible, consider operating in historically highly-liquid markets such as forex, stocks and commodities. In highly liquid markets, the difference between buying and selling prices (the spread) is typically small. This means cheaper trades for you as a trader, with less money lost to spread costs.

One of the reasons the stock market is so efficient is that it has enough liquidity to match buyers and sellers in a continuous auction market without creating volatile prices. Futures markets that trade on the major currencies and major stock market indexes are very liquid, but futures markets that trade specialized grain or metals products may be much more thinly traded. Financial institutions, corporations, and governments all benefit from the capital accessible through liquid markets.

Effect on asset values

Overall, the concept of a liquid market provides an example of how efficiency is achieved in idealized markets and serves as a valuable tool for understanding how real-world markets can be evaluated. By striving to maximize liquidity and price transparency, all participants can benefit from better pricing and more efficient trading, while also reducing their risk exposure. Understanding the essential features of a liquid market is invaluable for anyone involved with investments or financial markets. All participants have complete knowledge about prices and availability of products or services, so there are fewer opportunities for profiteering or price gouging. Similarly, due to the near-instantaneous reaction times of buyers and sellers, market prices tend to remain close to their equilibrium state, making them less prone to price swings. Looking forward, advancements in automation, artificial intelligence, and global connectivity are set to deepen market liquidity even further.

Trading

If you’re interested in understanding volatility better, I highly recommend checking out my dedicated video on ig sentiment indicator that topic after this one. Your Wolf Academy offers a range of educational resources to help traders succeed, including free signals, technical analysis, and weekly webinars. Sign up today and get a recommendation for a regulated brokerage company that suits your needs. MarketBeat’s Chris Markoch shares 5 international stock picks that could offer protection—and potential opportunity—amid the current market uncertainty. MarketBeat keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.

Understanding the connection between liquidity and volatility is crucial for investors as it can help them make informed decisions regarding market entry or exit based on current market conditions. Investors in less-liquid markets should be prepared for higher volatility and wider bid-ask spreads, requiring larger positions to minimize their transaction costs. Examples of liquid markets include major stock exchanges like the New York Stock Exchange (NYSE) and NASDAQ, where thousands of companies are listed, and trading volumes are consistently high. These exchanges provide investors with a wide range of investment opportunities and the ability to quickly buy or sell shares.

Factors Affecting Market Liquidity

The significance of market liquidity cannot be overstated for both investors and traders. A liquid market refers to a financial market with numerous active 3 great reasons to buy pinterest stock buyers and sellers, where securities can be bought or sold easily and at favorable prices due to low transaction costs. One of the most important features distinguishing a liquid market from an illiquid one lies in the ease of executing trades quickly with minimal price impact. The degree of liquidity may vary depending on the asset being exchanged, as well as underlying market conditions, time of day, or visibility of the security. One primary factor influencing market liquidity is the volume of trading activity.

Quick Order Execution

• In this YouTube video, you will learn everything covered in this article, from answering the question ‘What is liquidity in trading?
• Market liquidity is influenced by various factors, including the number of participants, the volume of trading, and the depth of the market.
• In contrast, an illiquid market is characterized by fewer participants and higher transaction costs, making it more challenging for traders to execute trades without altering market prices.
• In a liquid market like the one for Treasuries, they can easily sell these securities to realize cash quickly and at a fair price.
• For instance, less actively traded stocks within the broader stock market or specialized commodity futures may exhibit lower liquidity compared to their more popular counterparts.

Stocks in companies with a capitalization of $10 billion or more, commonly referred to as large-cap stocks, are highly liquid. Highly liquid markets tend to be less volatile and more resistant to manipulation by large players (often referred to as “smart money”). This makes price movements more predictable and technical analysis more reliable. This is because the presence of many participants increases the likelihood of finding a counterparty for a trade. Through its monetary policy tools, such as open market operations and the discount rate, the Federal Reserve can influence the availability of money and credit in the economy. By doing so, it helps ensure that markets remain liquid, which is essential for the smooth functioning of the financial system.

A liquid market is a financial market where buyers and sellers can easily trade assets without affecting their prices. Liquidity is an important aspect of financial markets as it provides investors with the ability to enter and exit positions quickly and efficiently. This allows investors to manage their risk effectively and also enables them to take advantage of market opportunities. A liquid market is an essential concept in finance and investment, characterized by numerous buyers and sellers and low transaction costs.