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Forex Trading Terms

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Spreads Margin Requirements
Roll-over Interest Trading Hours Weekends and Holidays
Contract Sizes Hedging Types of Orders
GTC Orders Conditional Order Distance Margin Call Policy
Total Account Loss Fill Policy Liability Policy

Account Types

Mini Universal

> Minimum Deposit: $500
> Minimum Trade Size: 1 mini lot (10k)
> Maximum Trade Size: 100 mini lots ($1mln)

Mini account can trade micro 1k, mini 10k, and standard 100k lots.

> Minimum Deposit: $5,000
> Minimum Trade Size: 1 mini lot (10k)
> Maximum Trade Size: 1000 mini lots or 100 standard lots ($10mln)

Universal account can trade micro 1k, mini 10k, and standard 100k lots.

All 3 account types can trade mini lots and standard 100k lots.

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Spreads

When you trade with us, you can be sure you are receiving some of the most competitive terms on the market.

Instrument Mini Universal
EUR/USD 2 2
USD/JPY 2 2
GBP/USD 3 3
USD/CHF 3 3
AUD/USD 3 3
USD/CAD 3 3
EUR/JPY 3 3
EUR/GBP 3 3
NZD/USD 5 5
EUR/CHF 3 3
AUD/JPY 5 5
CHF/JPY 4 4
GBP/CHF 6 6
NZD/JPY 7 7
EUR/CAD 7 7
GBP/JPY 7 7
AUD/CAD 8 8
EUR/AUD 6 6
AUD/NZD 8 8
Spreads may be variable during volatile and abnormal market conditions.

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Margin Requirements

Account Margin Leverage
Mini 0.5% 200:1
Universal 1% 100:1

A 100:1 leverage means that 1% of the contract size must be resereved while the position is open. For a standard 100k contract, 1 lot represents a contract size of 100,000 units, and 1% of that is 1,000 units. The units in which margin is measured is the first currency of the currency pair you are trading. ie: for EUR/USD, 1,000 units means 1,000 EUR. If your account's base currency is USD, then in order to know how much margin will be reserved, you will need to convert it into USD. 1,000 EUR in USD = 1,000 EUR * Price of EUR/USD.

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Roll-over Interest

We automatically rolls forward all open positions to the next day's value date following the close of NY trading at 4:00pm ET.

All accounts are interest-bearing. By request, accounts can be set up without interest (payable or receivable).

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Trading Hours

A true 24-hour market, Forex trading begins each day in Sydney, and moves around the globe as the business day begins in each financial center, first to Tokyo, then London, and New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they occur - day or night.

Trading Session begins on Sunday 5:00 p.m. and closes on Friday 4:00 p.m. New York Time.

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Open Orders on Weekends and Holidays

Orders left open during days when the market is closed, such as weekends and holidays, will continue trading at the first price which will be available on the market when it re-opens. This price may not necessarily equal the price at which the market closed.

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Hedging

Hedging functions are available in the MultiBank FX platform.

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Types of Orders

Order Type

Description
Market Order Market orders are orders to Buy or Sell at the best possible price as soon as possible. They are the first orders to be filled, and are used to enter or exit the market quickly, regardless of the current market price. Under no conditions will a market order be filled at a price which the client has not approved.
Entry Limit Allows you to specify a price to buy below, or sell above, the market price. Orders are executed when the prices you set are met in the marketplace.
Entry Stop This is the reverse of the limit, allowing you to specify a price to buy above, or sell below, the market price. Again, Stop orders are executed when the prices you set are met in the marketplace.
Limit Profit Allows you to specify a price to liquidate an existing Sell position below, or a Buy position above, the market price. Limit Profit is typically used to realize existing trading gains. Orders are executed when the prices you set are met in the marketplace.
Stop Loss This is the reverse of the limit profit, allowing you to specify a price to liquidate a Sell position above, or a Buy position below, the market price. Stop Loss is typically used to limit potential loss on a position. Again, Stop Loss orders are executed when the prices you set are met in the marketplace.

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Good Till Cancelled (GTC) Orders

All GTC orders remain open until they are triggered or cancelled, or until the position to which they are related is liquidated. If you close out a position manually, any order(s) relating to that position will be automatically removed.

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Fill Policy

Stop, limit, and entry orders are honored at the given price, except in abnormally volatile market conditions.

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Liability Policy

Spencer Financial will not be held liable for client losses due to fast or volatile foreign exchange markets, electronic disruption in service, service delays, incorrect information received from service vendors (i.e. quotations, new services) and/or clients (i.e. client profile data, updated data).

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