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Knowledge base: Trading Accounts
Account Types and Trading Terms
Posted by on 29 January 2014 11:47 AM
  1. What type of accounts do FXOpen provide?
  2. What instruments does FXOpen offer for trading?
  3. What are Islamic accounts? Do you provide SWAP-free accounts?
  4. Where can I look up SWAPs?
  5. Are your spreads fixed?
  6. Orders Execution Rules.
  7. What is Margin?
  8. Can I get Margin Call if I have no free Margin?
  9. Stop Out Calculation.
  10. How long does it take to confirm a deal?
  11. Do you allow using Expert advisors on all types of account?
  12. How long are positions maintained?
  13. What is a pip?
  14. How to Calculate 1 Pip Value in 5th decimal pricing?
  15. How to Calculate 1 Pip Value in 4th decimal pricing?

1. What type of accounts do FXOpen provide?

FXOpen UK offers clients ECN, STP and Crypto accounts.

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2. What instruments does FXOpen offer for trading?

50 FX pairs, Gold and Silver, Global Indices, Oil and Natural Gas are available for trading 24/5 from 10PM Sunday to 10PM Friday UK Time. Crypro Currencies including Bitcoin, Ethereum, Litecoin, and Dash Currencies trade 24/7. GOLD and SILVER are not available for trading between 22:00 and 23:00 UK time due to daily rollover procedures carried out by our liquidity providers.

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3. What are Islamic accounts? Do you provide SWAP-free accounts? 

FXOpen offers SWAP-free Islamic accounts which are compliant with Sharia laws for Muslim traders. If you are not sure if your account is Islamic or not, please, e-mail [email protected], give your account number and ask to make your account SWAP-free.

Instead of a SWAP, traders are charged an additional commission for overnight positions on STP and ECN Islamic accounts. The commission equals to SWAP.

Commission is charged on rollover and is displayed in the Terminal section in MT4. For ECN account the rollover commission is added to the commission for opening a trade.

You can look up FXOpen SWAPs in the MetaTrader:

  1. Right-click on the currency pair in the Market Watch window;
  2. Select Symbols;
  3. Choose the pair again in the pop up window;
  4. Click Properties on the right. You will see "swap long" and "swap short".

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4. Where can I look up SWAPs?

On the Forex market open positions are rolled over in the form of a SWAP. If your position stays open for the night or over the weekend there is a daily rollover interest rate that is either added or deducted to or from your account. It depends on the currency pair you trade and the transaction type (Buy or Sell). Opening a trade means that you borrow one currency to buy another. As we don’t know how long the trade will remain open, SWAP is added or deducted when the position is rolled over the night. We add/deduct SWAP to/from the account according to the difference between the interest rates of the currencies in the pair. If the interest rate of the currency that you buy is higher than the rate of the currency you borrow, SWAP is added to your account (positive SWAP). If the interest rate of the currency that you buy is lower than the rate of the currency you borrow, SWAP is deducted from your account (negative SWAP).

Overnight from Wednesday to Thursday a triple SWAP is charged to cover the weekend as FX trades settle on a T+2 basis

To look up swap rates on the MetaTrader platform:

  • Right-click in the Market Watch window
  • Select Symbols
  • Choose the currency pair in the pop up window
  • Click Properties on the right. You will see swap long and swap short

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5. Are your spreads fixed?

There are no fixed spreads as the spread is dependent on the liquidity of the market. It is possible for the market to have a negative spread where the bid price is higher than the ask price.

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6. Orders Execution Rules

Stop Loss Orders - Execution Rules
As a rule, Sell stops are filled on our Bid, and Buy stops are filled on our Ask. This allows FXOpen to fill client’s orders at the rate they requested in almost every case. In the rare cases when the market gaps over a requested Stop Loss rate, the position will be closed at the first available quote which is presented in the quotes flow instantly after the price gap. This is an important point for traders who are accustomed to being filled on sell stops when the offer reaches the requested order rate. For example, if a Stop order is placed to sell USD/CHF at 1.45490, the trader will be filled when the bid reaches 1.45490 (i.e. the bid/offer is 1.45490/530).

Good Till Cancelled (GTC) Orders - Execution Rules 
Trade order placed for a specific amount of time to buy or sell a foreign currency, it will be pending until the time you set or until you cancel it.

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7. What is Margin?

Margin - the amount of cash or other Eligible Collateral that FXOpen requires a customer to deposit or maintain in the Customer's Account in connection with the Customer's trading activity. Margin is usually 1-2% of the transaction amount; the remaining 98-99% is given by the dealer. This is the leverage in Forex terms. For example, if you would like to buy $10,000 for JPY and your leverage is 1:10, you need to pay 1,000 JPY.

The system performs an automatic pre-deal check for Margin availability, and will only execute the deal if the client has sufficient Margin funds in his or her account. To calculate the Margin it is required to open a trade, you can use the following formula:

 
 
Leverage for metals is always 1:100!

Example 1. Leverage=1:200, volume=0.1, EUR/AUD:

EUR/USD (Market price is 1.38430/450).

Long Short

Example 2. Leverage=1:200, volume=0.1, CHF/JPY:

USD/CHF (Market price is 0.98830/0.98860).

Long Short

Example 3. Leverage=1:200, volume=0.1, USD/CHF.

Long Short

Example 4. Leverage=1:200, volume=0.1, NZD/USD:

NZD/USD (Market price is 0.75020/0.75070).

Long Short

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8. Can I get Margin Call if I have no free Margin?

You will receive a Margin Call if your Margin Level falls below 100%

You will automatically be stopped out of an Open Position if your Margin Level falls below 50%

Your Margin Level % = Equity/Margin

Please, note that if the order was closed by Stop Out, you can find the information about it in trading terminal MetaTrader 4. Open the window Terminal, the tab Account History and check the column Comment. If you cannot find this column in the tab Account History right click in the tab and choose Comments.

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9. Stop Out Calculation

A critical loss level - Stop Out - is fixed to prevent trader losses in excess of the Margin and available funds on the trading account. Upon reaching this level, broker automatically closes all loss-making positions at the current market price when Margin Level is lower than Stop Out level. Thus positive account balance is kept.

Market Watch1 point value 
for Lot
MARGIN for 
Leverage 1 *
Symbol Bid Ask 0.1 500
USD/CAD 1.03060 1.03400 0.97 20.00 20.00
USD/CHF 0.98830 0.98860 1.01 20.00 20.00
USD/JPY 81.72 81.74 1.22 20.00 20.00
AUD/USD 1.00750 1.00780 1.00 20.15 20.16
EUR/USD 1.38430 1.38450 1.00 27.69 27.69
GBP/USD 1.52750 1.52440 1.00 30.55 30.49
NZD/USD 0.75020 0.75050 1.00 15.00 15.01
GOLD 1,384.2 1,385.2 0.10 138.42 138.52
SILVER 28.44 28.48 5.00 142.20 142.40


Equity30
Stop Out (Short)Stop Out (Long)
Equity after StopOut Pips till StopOut Price of StopOut (Ask) Equity after StopOut Pips till StopOut Price of StopOut (Bid)
2.00 29 1.03350 2.00 29 1.03110
2.00 28 0.99110 2.00 28 0.98580
2.00 23 81.95 2.00 23 81.51
2.02 28 1.01030 2.02 28 1.00500
2.77 28 1.38700 2.77 28 1.38180
3.06 27 1.53020 3.05 27 1.52170
1.50 29 0.75300 1.50 29 0.79490
13.84 162 1,385.82 13.85 162 1,383.59
14.2200 4 28.47 14.24 4 28.45

* Only USD containing currency pairs can be used to calculate Stop Out prices for cross-rates since it is impossible to foresee exchange rates of two currency pairs at one and the same time in future.

  Short Long
USD base
USD quote
 

where

P&L — is Profit and Loss;
Equity — is the account balance plus unrealized gains and minus unrealized losses.

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10. How long does it take to confirm a deal?

All deals are executed automatically and instantly in the market. The full transaction details including the reference number, date, time, notional amount bought and sold, Stop loss and Take profit levels may be accessed in the MetaTrader 4, window Terminal, tabs Journal and Trade.

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11. Do you allow the use of Expert Advisors on all types of account?

Yes, you can use Expert Advisors on all account types without limitation.

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12. How long are positions maintained?

As a general rule, a position is kept open until one of the following occurs:

  • The client closes the position manually
  • The stop loss or take profit level is reached and the open position is closed
  • The Margin level falls below 50% and the position is automatically closed by FXOpen

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13. What is a pip?

A pip measures the amount of change in the exchange rate for a currency pair. For currency pairs displayed to 4 decimal place such as EURUSD one pip is equal to 0.0001. For currency pairs displayed to 2 decimal places such as USDJPY the pip is equal to 0.01. Please note that FXOpen offers fractional pricing which displays an additional decimal place for greater precision.

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14. How to calculate pip value for 5th decimal pricing?

Pip value for ECN/STP accounts (5th decimal pricing)
Pip (percentage in point) is the smallest change in four decimal place currency quotes (as well as in two decimal place quotes for pairs containing JPY). The fifth digit after the decimal point in quotes for currency pairs (as well as the third one for pairs with JPY) shows the price change discreteness within the four (two) decimal place quotes, i.e. the minimum qoute change.

Quotes with 5 decimal places allow better transparency and better ability to catch better deals. For example, instead of 2 pips spread (1.5030 Bid 1.5032 Ask), a trader can get a 1.7 pip spread (1.50301 Bid 1.50318 Ask). 

To know what a pip is in 5 digit quote, take the exchange rate and count 5 digits backwards. For instance, the EUR/USD is at 1.00615. Count 5 digits from the first: 1, 0, 0, 6, 1. The 1 is the 5th digit in the quote and it's at the 4th position after the decimal point, so a pip for the EUR/USD is 0.0001. The last digit in 5 decimal pricing is a ‘fractional’ pip. In our example is 8.1 ‘fractional’ pip is 0.1 of a pip. To calculate pip value you can use the following formula:


Example 1. 0.1 standard lot EUR/USD at the price 1.33391.


To convert EUR 0.07496 to USD you must multiply:


As you can see from the example 1 - ‘Fractional’ pip value is $0.1 that means 1 pip value is $1

Example 2. 0.1 standard lot USD/JPY at the price 84,058.



As you can see from the example 2 - ‘Fractional’ pip value is $0.1 that means 1 pip value is $1.

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15. How to Calculate 1 Pip Value in 4th decimal pricing?

Pip value calculation
A pip is calculated by the quote currency (the second one in the pair). To calculate pip value you can use the following formulas and examples:

Example 1.

 

Market price

EUR/AUD

1.42280/380

1 point = 10 AUD

 

AUD/USD

0.97780/810

1.0 USD = 0.9778 AUD

 

10 AUD = 10*0.9778 = 9.778 USD

 

Example 2.

 

Market price

EUR/CHF

1.36800/830

1 point = 10 CHF

 

USD/CHF

 

1.0 USD = 0.9886 CHF

 

10 CHF = 10/0.9886 = 10.1153 USD

 

Example 3.

 

Market price

USD/CHF

0.98830/860

1 point = 10 CHF

 

1.0 USD = 0.98860 CHF

 

10 CHF = 10/0.98860 = 10.11530 USD

 

Example 4.

EUR/USD

 

1 point = 10 USD

 


Pip value calculation for Gold/Silver 

To calculate pip value for Gold/Silver you can use the following formula:

Example 5. 0.1 lot Gold.

Example 6. 10 lots Silver.

 
 
 
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