TRADING

You asked. We answered.

Find answers to all your trading questions here.

Leverage in trading represents the number of times you can increase your purchasing power using the available funds in the account. For example, using our Premium account leverage of i:200 if you have $10,000 USD in your account, you can buy a position worth 200 x 10,000 = $2,000,000 USD. You should be aware that leverage can amplify your losses as well as your gains.

Margin is required to open and maintain open positions. This is not a fee or a transaction cost, it is simply a portion of your account equity set aside and allocated as a margin deposit.

FX margin requirement is calculated using the formula below:

(Market price x Trade Size)/ Levrage = Margin Requirement

We will demonstrate the calculation using the following example:

Given that GBP/USD market price is quoted as 1.4385, to trade one mini lot (10,000) using our Premium account leverage of 1:200, Margin Requirement = (1.4385 x 10,000) / 200 $71.93 USD

Note: If your account base currency is not in USD, the margin requirement account will be converted into your base currency.

Margin Call is a measure set by brokers to alert traders prior to their account funds falling below the Margin Requirement. This prevents liquidation of open positions due to insufficient Margin Requirement. At FX88, Margin Call is set at 80%, therefore, if your Equity (Balance – Open Positions Profit/Loss) falls below 80% of the margin required to maintain your positions, a notification within MT4 will alert you to make an additional deposit to maintain your open positions.

In the event whereby the margin level of your trading account funds hits or falls below 50%, a stop-out will be triggered. We will start liquidating your most unprofitable, positions to prevent further losses into negative territory whenever a stop-out is activated. Margin Level = (Equity/Used Margin) x 100% 

Swap rates are calculated automatically by the MT4 platform. For the most updated rollover / swap rates, please refer to the Market Watch panel in our MetaTrader4 and follow the steps outlined below:

  • Right click inside the Market Watch panel
  • Select Symbols
  • Choose the desired currency pairs in the pop-up window
  • Click the Properties button on the right side
  • Rollover/Swap rates for the particular pair are displayed (Swap long, Sqap short)

Swap rates are calculated automatically at the end of every trading day. The rollover process starts at 23:59 server time. Our server time is  set at GMT+3.

Most banks are closed on Saturdays and Sundays, so there is no rollover on those days, but most banks still apply interest for Saturday and Sunday. To account for this, the forex market applies three days of rollover on Wednesdays, which makes a typical Wednesday rollover three times the amount.

Take Profit and Stop Loss are pending orders. Once they are triggered, pending orders became market orders and are subjected to the available market liquidity at that time. Therefore, it is not always possible to execute pending orders at the desired levels due to price volatility and unforeseen market conditions.

Our pricing is derived from the top tier liquidity providers who stream prices to our platform.

Our platform or chart time is set to GMT+3. It cannot bechanged on your MT4

Your MT4 chart displays, the BID price. However, to close a short position, ASK price is used. Since ASK= BID + SPREAD, it is insufficient to trigger a take profit order when only the BID price has reached profit taking level.

At FX88, we have over 60 instruments including Forex, Metals and CFDs and we will be expanding our offering in the coming months.

At this time, we do not offer a guaranteed stop loss functionality.

Slippage occurs when, at the time an Order is presented for execution, the specific price shown to you is unavailable. This means that the Order will be executed close to or a number of pips away from your requested price. So, Slippage is the difference between the expected price of an Order and the price at which the Order is executed. If the execution price is better than the price you requested, this is referred to as positive slippage. If the executed price is worse than the price you have requested, this is referred to as negative slippage.

 

Slippage can occur also during Stop Loss, Take Profit and other types of Orders depending on market conditions. When these orders are triggered, they become market orders ready for execution at the next available market price. The execution of your Pending Orders at the price specified cannot be guaranteed. However, we confirm that your Order will be executed at the next best available market price you have specified under your Pending Order.

Slippage is normal when trading CFDs and leveraged forex products> slippage often occurs during periods of high volatility (for  example due to news announcements, economic events and other factors). To provide the best possible trading experience to clients, we do not interfere in the execution of client trades and treat all slippage scenarios in the same way as any financial exchange. The prices you receive reflect the best possible prices received from the banks we partner with. Please take extra precaution when trading during periods of high volatility or at market opening times.

policy to Act in the Best Interest of the Client and Order Ececution Policy

 

Risk warning: Trading leveraged products such as forex and CFDs carries a high level of risk and may not be suitable for all investors. There is a possibility to lose all your initial capital. Please ensure that you fully understand our Risk Disclosure Policy.