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Question: I can't place a pending order. The terminal gives the message «Wrong S/L or T/P». What is the principle of placing pending orders? Answer: You can find this information in documentation for MetaTrader 4 trading terminal.
Question: What is the size of a lot, margin requirements, spreads, commissions, etc? Answer: All the necessary information is on the website’s pages Contract Specifications and Traders Calculator. Question: What is the credit shoulder and who provides it? What is the principle of margin trading? Answer: The sense of margin trading is that to make a deal it is not necessary to have the whole sum of contract. It is enough to fund a margin, which usually equals to 1-2% of the necessary sum. The missing sum of money will be provided to you by the broker, through which you will be trading on the Forex market. In the language of currency traders, this is called leverage. So, to buy $100 000 for Japanese yen at leverage of 1:100, you need to make a deposit of just $1 000. Question: Can I trade through your company with a smaller leverage, say 1:20 instead of 1:100? Answer: You can choose leverage: 1:50, 1:100, or 1:200.
Important: a smaller leverage imposes stricter margin requirements. Working with a smaller leverage gives you no advantages. Question: What types of orders can I use for trading?
Answer: MetaTrader 4 trading platform features the possibility to work from the market, and placement of pending buy and sell orders. Question: How are swap-points calculated? How to calculate a position? Answer: The basis for calculation is the difference of interest rates for different currencies. The table of current swap-points is published on the website. You get notified about changes in the table through the system. Question: What parameters are in the Client’s daily report? Answer: In the daily electronic report received by email, you can see:
1. Financial results of completed deals of the current day Question: How to make deals? Answer: To make a deal, the trader should ask an active market-maker for a quote, and:
- specify the instrument (currency pair) with which the trader wants to make the deal;
- specify the sum of the contract;
- the market-maker offers a two way quote for the specified instrument;
- the trader makes a decision whether to buy, sell or refuse the deal. Question: Why does the message “Trade is stop” pop up when I try to buy/sell on Sunday? Answer: The Forex market is open 24 hours a day from Monday to Friday. Thus, trading is closed on Saturday and Sunday. Question: At what price is a deal placed? Answer: All instruments are quoted with the 2 prices: upper - Ask and lower - Bid. The difference between them is called spread. The smaller the spread, the more profitable trading conditions are.
- On opening a Buy deal, it is placed at the dealer at the Ask price.
- On closing a Buy deal, it is executed at the dealer at the Bid price.
- On opening a Sell deal, it is placed at the dealer at the Bid price.
- On closing a Sell deal, it is executed at the dealer at the Ask price.
This implies that in order for your deal to be smooth, the price must change by at least the value of the spread. Question: But my terminal displays just one price!!
Answer: See FAQ about MetaTrader 4.0. |
