FAQ classification
FxProTransaction related
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What is a profit order?
A "profit" order is used to lock in profits at a specified price, or to limit further losses after a significant profit.
It can be attached to the order at the time of opening, or you can modify the position and add a stop profit later. It can also be attached to the order.
The stop profit of the buying position must be higher than the current market price, and the current market price of the selling position must be lower than the current market price.
All 'limit price' orders (including profits) are executed under 'limit price execution', which means you will receive the price you requested or a better price. If there is a favorable price in the market when your stop profit is triggered,FxPro Will be traded at a better price.
Therefore, it is impossible to receive worse prices on "limited price" orders such as Stop Earnings.
Once the“BID”If the price reaches your stop profit level, the stop profit for long positions will be triggered for execution. Once the“ASK”If the price reaches your stop profit level, the stop profit of short positions will be triggered for execution.
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What is a stop loss?
Stop loss "refers to the mandatory automatic closure of a trader's position when the net value of their trading account falls below a specific threshold.
As long as you have an open position, the margin level will increase by % Displayed on the platform in the form of, the calculation formula is: net value / Initial margin *100
Net value refers to the balance in each trading account + Unrealized gains and losses, excluding you FxPro Any balance in the wallet.
example:
The mandatory closing level for all our platforms and account types is 50%。 This means that once your net worth drops to an amount equal to your initial margin 50% The value of will begin to show a stop loss.
Therefore, the initial deposit is 1000 USD, initial margin is 100 USD, your remaining available deposit is 900 USD. If the loss reaches 900 USD, your remaining available margin will be 0At this point, your margin level % Will be 100%(100 equity/100 Initial margin = 100%)。 If the loss continues and ultimately reaches 950 USD, will trigger 50% Stop loss. (50 Equity / 100 Used margin = 50%)
Now that we have explained how to apply a stop loss, let's take a look at an example of the price at which you will be stopped.
You pay per barrel 55 The price in US dollars has been opened 100 Barrels of Brent oil(0.1 The buying position of the hand. Use of this position 10 times (1:10) Leverage, your account has 600 USD.
The initial margin is risk exposure 1/10= 10%。 In this case, the exposure is 100 Bucket multiplied by 55 = 5,500 USD. Therefore, your initial margin is 550, Remaining 50 Available margin in US dollars.
The price is starting to decline, and we would like to know at what price the equity will be equal to the initial margin 50%。 For this, we need to calculate the loss as 550 = 275 of 50% Add the price of the available margin, as we explained in the example above, the loss is first used to offset the available margin. Therefore, due to our position being 100 Barrel, the total loss will be 325 Or per barrel 3.25。 When prices fall 3.25 And achieve (50-3.25) 46.75 In US dollars, which is the buying price, you will be stopped from losing and eliminated.
Stop Out Helps prevent negative balances in trading accounts, but in highly volatile markets or during market gaps, orders may not always be able to be executed at a specific level and Stop out There may be obvious slippage points when placing an order.
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How to display inquiry on the trading platform?
By default, the price chart uses BID Price construction, however, triggers the closure of sales orders or the opening of buying positions ASK Price (higher price).
If the current asking price has not been displayed by default, you can add the current asking price to the charts of all our platforms.
stay MT4 and MT5 Up, go to the chart > Attribute and check the 'Display selling price line' box.
stay cTrader On the chart, right-click and go to "View Options" and check the "Price Line" option.
stay FxPro App When the chart is in full screen mode, there is a B+A Button, you can click on it to choose whether to display bids and asking prices.
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What is a sliding point?
Sliding point refers to situations where the execution price is different from the price you requested. That is, the price "drops".
When your market order is triggered and traded at a price different from the price you requested, a sliding point will occur. The difference may be small or significant. In some cases, price differences and increased volatility may lead to significant sliding points.
This is a normal market practice and a common feature of the foreign exchange market in situations of insufficient liquidity and volatility caused by news announcements, economic events, and market opening. The sliding point can be positive or negative. When a larger order is placed in the 2 Level or even level 3 When the price part is executed, there may also be slippage points (please refer to the question What is VWAP)。
Although we are not required to do so, we do it every yearFxProPublish our execution statistics on the official website.
example:
At the closing price of 50.00 Before the US dollar, you held 1000 Barrel(1 Hand)WTI You have a long (buy) position in 50.50 The price of the US dollar has set a limit on earnings, which is 49.5 The price of the US dollar has set a stop loss order.
However, due to significant news coverage over the weekend, when the market opened on Monday,WTI with 51 The upward gap of the US dollar opened.
Therefore, your stop profit order will be triggered when the market reopens (as the price has already exceeded your stop profit level), with a price of 51.00 USD, and will be executed at this price or a better price.
This is why market gaps and sliding points may lead to more profits or losses than expected, and why it is never guaranteed to execute stop loss orders (such as "stop loss") at the price you request.
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What is a point difference?
The difference between the purchase price and the selling price is the "point difference", which is the return you pay to the broker in exchange for placing an order through them.
Therefore, you will notice that trading starts with a negative number, as you need to make up for the spread before starting to profit.
Let's use an example to prove this point. You have 1.0700 Buy in USD 1 hand EURUSDThe buying and selling prices are respectively 1.0698 USD and 1.0700 USD. When you make a purchase, you will receive the asking price. Price moves in a direction that benefits you 5 Point, so that the new buying and selling prices are respectively 1.0703 USD and 1.0705 USD. You have 1.0703 Selling and closing positions at a new buying price in the US dollar, earning a profit 3 Point, i.e 30 USD.
In this example, your profit decreases 20 The reason for the US dollar is that you have been charged 2 A little difference.
Let's give another example of using GOLD For example, it is priced in US dollars. When the buying price and selling price are respectively 1600.50 and 1601.00 When you decide to sell (short)100 Ounces(1 Hand). As this is a sold position, it is 1600.50 Open the position at the buying price of. Then the price moves downwards 0.50 To your advantage, the new buying and selling prices are 1600.00 and 1600.50。 You are offering a new selling price 1600.50 Buy to close position.
In this case, even if the price moves in your direction, you still need to pay the price difference, and your order is at the exact same price (1600.50) Opening and closing positions means that your profit or loss is equal to 0。
The spread is usually floating and fluctuates based on liquidity and volatility. Volatility is influenced by liquidity, and vice versa. -
What should I do if I have any questions or confusion about a particular transaction?
If you would like to view any orders, please use your registered email to send an email tosupport@fxpro.com Please attach your account and transaction order number,FxProWe will review your query and reply to you as soon as possible.
You can find the order number in your trading account tab or history tab.
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Why was my order executed or triggered a stop loss when the price did not reach the specified price/Stop profit?
Please remember that buying positions are opened at the selling price (and closed at the buying price), while selling positions are opened at the buying price (and closed at the selling price).
Therefore, stop loss, stop profit, and order placement can only be executed after the purchase or sale price displayed on the price chart is triggered.
The selling price is always higher than the buying price because it includes FxPro Point difference. Therefore, you need to consider the point difference when the order is triggered.
For example, if you use 1.15700 The price has been opened for EURUSD And set up a sales transaction 1.15750 Stop loss, which means that your stop loss will reach the selling price 1.15750 Triggered when. Therefore, if the point difference at that time is 1.5ipsYou may see that the price of your order in the chart is only 1.12735 Close when.
Price chart default display BID Price. If you are unable to see the current asking price on your platform, please refer to: How to display the asking price on the platform?
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What is liquidity?
Liquidity, in simple terms, refers to the ability to trade (buy and sell) tools. When many market participants are interested in buying and selling tools in any quantity, liquidity is considered good. The easier it is to sell or purchase tools in any given quantity, the better the liquidity.
The higher the liquidity of a tool, the smaller the price difference, as market participants compete to obtain the best price. When liquidity is low, pricing is usually more unstable, and due to the lower demand for the tool, the spread may be higher.
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What is overnight interest(rollover)?
Due to the fact that each currency transaction involves borrowing one currency to purchase another, interest rollover fees are a part of foreign exchange transactions.
Borrowed currency pays interest, while purchased currency earns interest. The overnight interest rate may be positive or negative and applies to any time you open a position for trading.
If the interest rate of the currency you purchase is higher than the currency you borrow, the net interest margin will be positive and you will earn funds as a result. On the contrary, if the interest rate difference is negative, you will be charged a fee.
Swaps are also applicable to non foreign exchange instruments, as all instruments are traded in a specific currency that generates interest rates.
On the platform, 'overnight interest' will automatically be converted into balance currency. This operation occurs at midnight server time (UK time in the evening 10 Point) will only be charged if you have any open positions at this time/reap profit.
Overnight interest is charged once from Friday to Monday. Swaps are charged at three times the weekend rate from Friday to Monday.FxPro The swap interest rate is consistent with the bank and reviewed and updated weekly by the executing department.
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