Account Types and Trading Terms
Posted by on 29 January 2014 11:47 AM
FXOpen UK offers clients ECN, STP and Crypto accounts.
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.
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:
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).
To look up swap rates on the MetaTrader platform:
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.
6. Orders Execution Rules
Stop Loss Orders - Execution Rules
Good Till Cancelled (GTC) Orders - Execution Rules
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:
Example 1. Leverage=1:200, volume=0.1, EUR/AUD:
EUR/USD (Market price is 1.38430/450).
Example 2. Leverage=1:200, volume=0.1, CHF/JPY:
USD/CHF (Market price is 0.98830/0.98860).
Example 3. Leverage=1:200, volume=0.1, USD/CHF.
Example 4. Leverage=1:200, volume=0.1, NZD/USD:
NZD/USD (Market price is 0.75020/0.75070).
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.
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.
* 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.
P&L — is Profit and Loss;
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.
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.
12. How long are positions maintained?
As a general rule, a position is kept open until one of the following occurs:
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.
Pip value for ECN/STP accounts (5th decimal pricing)
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:
As you can see from the example 1 - ‘Fractional’ pip value is $0.1 that means 1 pip value is $1.
15. How to Calculate 1 Pip Value in 4th decimal pricing?
Pip value calculation
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.