How is a currency pair read? Currencies are quoted in pairs, each being represented by a three-letter code separated by a forward slash, point or space. The first currency in... more" /> General Trading Questions - FxPro Review

General Trading Questions

How is a currency pair read?

Currencies are quoted in pairs, each being represented by a three-letter code separated by a forward slash, point or space. The first currency in the pair is known as the base currency, the second currency in the pair is known as the quote currency. The figure provided in an exchange rate refers to how much of the quote currency is required to purchase a unit of the base currency. So if GBP/USD is currently trading at 1.54785, this means that it costs $1.54 to purchase £1.

What instruments do you offer trades on?

FxPro offers trades on a range of instruments including: currency pairs, shares, spot indices, futures, spot metals and spot energies.

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You can find a comprehensive list of all instruments available for trading here.

Do you offer micro (0.01) lots?

Yes, you can trade micro lots on all our platforms with our standard account type.

What leverage do you offer?

We offer leverage from 1:1 to 1:500.

On our FxPro MT4 and FxPro MT5 platforms we also offer dynamic leverage, with the maximum available leverage decreasing as the volume being traded per instrument increases.

Click here for more information.

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What is instant execution?

Orders placed with instant execution are filled at the price quoted on your platform, provided that this price is still valid. In case the price is no longer valid due to a fast-moving market, you will receive a requote.

Please note that instant execution is only available on the FxPro MT4 platform.

What is market execution?

Orders placed with market execution are executed at once at the prevailing market price. The system automatically aggregates the volume received from third-party liquidity providers and executes the ‘market order’ at VWAP (‘Volume-Weighted Average Price’) that is the average and best available price at the time of the execution.

Please note that, when employing market execution on FxPro MT5, you will be unable to set stop-loss or take-profit levels before the order is executed.

What are fixed spreads?

Fixed spreads do not vary throughout the day as floating spreads do. There is a Day Rate, a Night Rate, and a separate Night Rate (23:50 – 00:30 EET) for fixed spreads, as well as an Abnormal Rate that appears only during extremely volatile market conditions. A fixed-spread account allows you to manage your trading costs more effectively, as you can know in advance the pip difference between the bid and the ask prices.

Fixed spreads are particularly useful for news traders, algorithmic traders and those trading at shorter time frames.
What are floating spreads?

Floating spreads vary throughout the day, depending on market volatility and available liquidity. They represent the best bid and ask prices we are able to secure from our liquidity providers.

The greatest advantage of floating spreads is that you receive the best current market price at the time you are trading, which can often be lower than when trading on a fixed spread account. On the other hand, floating spreads can also widen considerably before and after high-impact news announcements and during high market volatility.

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Will I experience requotes?

There are no requotes on the FxPro MT5 and FxPro cTrader platforms.

You may experience requotes on FxPro MT4 accounts during highly volatile market conditions. You can, however, avoid requotes by checking the ‘Standard Deviation’ box at the bottom of the ‘Order’ window. Doing so will allow you to set the pip range that will be available to you if the market price deviates from the price you clicked.

Please note that the pop-up window for requotes is disabled when using the one-click trading feature. You will, however, hear a sound alert when a requote is given, provided that sound alert is enabled (Tools > Options > Events), and the requote will be stated in your log files within the client terminal.

Do you offer Futures contracts?

Yes, we offer CFD futures on a variety of indices, agricultural commodities and energies.

Click here for more information.

How is swap calculated?

Swap is calculated by taking the difference between the respective interest rates in the currency pair being traded and adding FxPro’s commission fee for rolling over the position to the next trading day. The result can either be a positive figure owed to the client or a negative figure owed by the client.

Swap is calculated from Monday to Friday at 23:59 server time. The figure is tripled on Wednesday to account for only being calculated once between Friday and Sunday.

Swap fee = [(one pip / exchange rate) X trade size (lot size) X swap value in points] / 10

At what point will my positions be closed automatically?

If you are trading on the MT4 platform, FxPro has the discretionary right to begin closing current open positions, starting from the most unprofitable, when the margin level of your account drops below 25%. If the margin level of your account is equal to, or drops below, 20%, all your open positions will be automatically closed at the current market price, according to our Order Execution Policy.

If you are trading on the MT5 or cTrader platforms, FxPro has the discretionary right to begin closing current open positions, starting from the one requiring the most margin, when the margin level of your account drops below 40%. If the margin level of your account is equal to, or drops below, 30%, all your open positions will be automatically closed at the current market price, according to our Order Execution Policy.

What is a CFD?

A CFD, or contract for difference, is an agreement that allows you to speculate on the value of a financial instrument without having to purchase it outright and take possession of it. In a CFD contract, if the value of the instrument in question is higher when the agreement is closed than it was when it was purchased, the seller must pay the difference to the buyer, if the value is lower the buyer must pay the difference to the seller.

How are stop loss orders executed?

Stop losses are executed as market orders as soon as price action reaches the level you have predefined. In certain trading conditions, especially during times of high market volatility or illiquidity, it is possible for a stop loss order to experience slippage or for it to not be executed at all.

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What is leverage?

Leverage allows traders to make larger investments than their initial risk capital will allow. For instance, a trader using 10:1 leverage can control a $10,000 investment with $1,000.

What is the difference between a stop order and a limit order?

Limit and stop orders are often confused with each other as both are pending orders that instruct a broker to open or close a position when an asset’s price reaches a certain level. Buy limit orders instruct that a position is opened when the market price reaches a level lower than the current price, sell limit orders instruct that a position be opened when the market price reaches a level that is higher than the current market price.

Conversely, buy stop orders are entered above the current market and sell stops are entered below the current price.
Essentially limit orders attempt to get a better price than the current one, whereas stop orders are employed to take advantage of upswings and to minimise loss during downswings. Stop orders are essentially executed as market orders when price action triggers them, as such they can be subject to slippage and poor fills in certain market conditions.

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