English Language:
Home / About Us / FAQ

Trading FAQ

On this page you can ask our manager any questions you have. The reply to your question will be sent to your e-mail. Before asking, please look through this page and read the information on it. Here may already be an answer to your question.

  1. Why the position was not closed even when the price was on the chart?

    Remember that there are two prices in the market: the price of sellers (ask) and the price of buyers (bid).

    The chart shows the bid price.
    So:
    • A sell order is opened at the bid price, and is closed at the ask price.
    • A buy order is opened at the ask price, and is closed at the bid price.
    Consider this example:
     
    For your SELL order, the stop-loss order is set at the price of 1.2970. The price in the chart reached 1.2968, but the order was closed by stop-loss price. In this case, 1.2968 is the bid price, and given the spread of 2 points, the ask price was 1.2970 (i.e. ask = bid + spread = 1.2968 +0.0002 = 1.2970).
     
    SELL orders are executed at the ask price. Therefore, the SELL order was closed by stop-loss order at the price “bid 1.2968 ask 1.2970.”
  2. Why was the order closed without my participation?

    If trader’s funds fall below the required margin, the broker has the right to close a part of loss-making positions at the current market price. Funds = Account balance + Results of opened transactions.

    Learn more about margin requirements for each type of account in the section “Trading conditions / Types of accounts.”
  3. How to open a position.

    To open a position in a terminal window, right-click the selected tool and in the which appears, choose “New order”. After this you should set the parameters for the order and open the position by pressing the “Buy / Sell.”

  4. Why was the order executed not at the declared price?

    An order may be executed not at the set price in the case of gap. The gap is a price break that occurs when prices sudden change. The gap means that in the market there are no buyers and sellers that are ready to make a deal at a price that exists within the gap. If a trader has a stop order at a price inside the gap, this order will not be executed at this price, because in the market there are no buyers and sellers at this price. In this case, the order is executed at the gap price, i.e. at the price that sellers or buyers are ready to pay.

  5. What is a leverage?

    The leverage is a ratio between the trader’s own funds and borrowed funds, which a trader borrows from his broker. 1:100 leverage means that for a transaction you must have a trading account with amount 100 times less than the sum of the transaction.

    Leverage may vary from 1:1 to 1:1000. Example: a trader chooses the 1:500 leverage and has 200 euros on his account. Leverage 1:500 allows him to buy a contract worth 100.000 euros.
  6. What is a lot?

    Lot is a unit of transactions in trades.

  7. How does the stop order work?
    Stop Loss
    This order is intended to minimize financial losses in the event of adverse exchange rate fluctuations in the market. If the market price reaches a level specified in the stop order, the position is automatically opened or closed. Such an order is always connected to an opened position or a pending order. To execute the order, the bid price (for long positions) or the ask price (for short positions) is used.
     
    Take Profit
    This order is intended to take profit, if the price reaches the forecast level. If the price in the market reaches the take profit level, the transaction is closed with a profit. Such an order is always connected to an opened position or a pending order. To execute the order, the bid price (for long positions) or the ask price (for short positions) is used.
  8. How is profit in FOREX calculated?

    Let’s suppose you purchased 1 lot EURUSD at 1.2291 and closed the position at 1.2391. What is the profit? Opening the position, you bought 100,000 EUR and sold 1.2291 * 100,000 = 122,910 USD. Closing the deal, you sold 100,000 EUR and bought 1.2391 * 100,000 = 123,910 USD. Your profit will be 123910-122910 = 1000 USD.

  9. How is a Swap calculated?

    The swap is a commission for transfer the opened positions on the next day. Swaps can be negative and positive, depending on the difference in the interest rates of countries whose currencies are traded.

    Example of swap calculation:

    Let’s consider a trading transaction for the EURUSD pair. Assume the interest rate in Europe is 4.25%, while in the US it’s 3.5%. You open a SELL position for 1 lot EURUSD and sell 100,000 euro, borrowing them at 4.25% APR, and deposit purchased dollars at 3.5% APR. The rate in Europe is higher than that of the US, so the swap will be negative and the sum of the swap will be charged from your account. In the opposite situation, the swap will be deposited to your account.
     
    The swap also includes a broker commission for transferring your position on the next day.
     
    Thus, the swap is 4.25% - 3.5% + 0.1% = 0.85% (the difference between interest rates + broker commission).
     
    The calculation of the swap for selling EUR:
    Swap = (value of the contract * (difference between interest rates + commission broker for transferring your position) / 100) * Current price / number of days in the year.
     
    (100,000 * (-0.75% -0.1%) / 100) * 1.5 / 365 = -3.49 USD.
     
    The calculation of the swap for buying EUR:
    Swap = (value of the contract * (differencebetween interest rates - broker commission for transferring your position) / 100) * Current Price / number of days in the year.
     
    (100,000 * (0.75% -0.1%) / 100) * 1.5 / 365 = 2.67 USD.
  10. Why can not I sell at the weekend?

    The FOREX is not open on the weekend.

  11. How risky are operations in Forex?

    The risks of trading in financial markets are determined on the basis of two categories - risk and return, i.e. the greater the leverage and potential profits, the higher the level of risk. Reduce risks by setting a stop order, as well as using less leverage.

  12. What types of pending orders do you know?

    Pending order is the client's commitment to the brokerage company to buy or sell a security at a pre-defined price in the future. This type of orders is used for opening of a trade position provided the future quotes reach the pre-defined level. There are four types of pending orders available in the terminal:

    1. Buy Limit — buy provided the future "ASK" price is equal to the pre-defined value. The current price level is higher than the value of the placed order. Orders of this type are usually placed in anticipation  that the security price, having fallen to a certain level, will increase;

    2. Buy Stop — buy provided the future "ASK" price is equal to the pre-defined value. The current price level is lower than the value of the placed order. Orders of this type are usually placed in anticipation that the security price, having reached a certain level, will keep increasing;

    3. Sell Limit — sell provided the future "BID" price is equal to the pre-defined value. The current price level is lower than the value of the placed order. Orders of this type are usually placed in anticipation that the security price, having increased to a certain level, will fall;

    4. Sell Stop — sell provided the future "BID" price is equal to the pre-defined value. The current price level is higher than the value of the placed order. Orders of this type are usually placed in anticipation that the security price, having reached a certain level, will keep on falling.

    types of pending orders

     


Ask

Our consultant will answer your question shortly.