Account Types and Trading Terms

Account Types and Trading Terms

  1. 1. Are your spreads fixed?

  2. Our spreads are not fixed and depend on the buy and sell orders that are currently available in the Marketplace.

  3. 2. Can I get Margin Call if I have no free Margin?

  4. Margin Call happens when a client's account equity falls below the required Margin to maintain open positions. It’s done automatically. On ECN accounts Margin Call happens when Margin level falls below 100%. Losing orders are closed automatically by Stop Out at Margin level of less than 50%.
  5. Example:

  6. The 1 lot trade opened on ECN account with a Margin requirement of $300 will be subject to a Margin Call when the account Equity falls to $300 or less. When the Equity falls below $150 the order will be closed automatically by Stop Out.
    Please note that if the order was closed by Stop Out, this will be shown in the History in Trading terminal. 

  8. 3. Does ForexEE offer bonuses?

  9. For the latest information, please see Campaigns menu on the official website.

  10. 4. How can I open a SWAP-free (Islamic) account?

  11. Open a Live account with ForexEE. Send a request to make your account SWAP-free at support@forex.ee. In the request, indicate your Main account number and attach a document confirming that you profess Islam.
    Note: In case of a swap-free account, an additional commission will be applied and will equal to the swap.

  12. 5. How long are positions maintained?

  13. A position is kept open until:
    • Take profit order is triggered.
    • Stop Loss order is triggered.
    • Manual closing of a position to get free assets for another position
    • Broker closes a losing position by Stop Out

  14. 6. How long does it take to confirm a deal?

  15. After a deal is confirmed, a notification appears within a few seconds. You can check the transaction information in the Journal and Trade tabs of the Terminal window.

  16. 7. How to calculate 1 pip value for 5th decimal pricing?

  17. Pip value for ECN 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 quote 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:


  19. 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.


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

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

  23. 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:

  25. Example 1

     

    Market price

    EUR/AUD

    1.4228/38

    1 point = 10 AUD

    		 

    AUD/USD

    0.9778/81

    1.0 USD = 0.9778 AUD

    		 

    10 AUD = 10*0.9778 = 9.778 USD

    		 

    Example 2

     

    Market price

    EUR/CHF

    1.3680/83

    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

    0.9883/86

    1 point = 10 CHF

    		 

    1.0 USD = 0.9886 CHF

    		 

    10 CHF = 10/0.9886 = 10.1153 USD

    		 

    Example 4

  26. EUR/USD
  27. 1 point = 10 USD​

  29. Pip value calculation for Gold/Silver

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

  31. Example 5. 0.1 lot Gold.

  32. Example 6. 10 lots Silver.


  34. 9. Order execution rules.

  35. 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 ForexEE 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 1.4549, the trader will be filled when the bid reaches 1.4549 (i.e. the bid/offer is 1.4549/53).

  36. Good Till Cancelled (GTC) Orders - execution rules

  37. A 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.

  38. 10. Stop Out calculation.

  39. 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 *
    SymbolBidAsk0.1500
    USD/CAD1.03061.0340.9720.0020.00
    USD/CHF0.98830.98861.0120.0020.00
    USD/JPY81.7281.741.2220.0020.00
    AUD/USD1.00751.00781.0020.1520.16
    EUR/USD1.38431.38451.0027.6927.69
    GBP/USD1.52751.52441.0030.5530.49
    NZD/USD0.75020.75051.0015.0015.01
    GOLD1,384.21,385.20.10138.42138.52
    SILVER28.4428.485.00142.20142.40


    Equity30
    Stop Out (Short)Stop Out (Long)
    Equity after StopOutPips till StopOutPrice of StopOut (Ask)Equity after StopOutPips till StopOutPrice of StopOut (Bid)
    2.00291.03352.00291.0311
    2.00280.99112.00280.9858
    2.002381.952.002381.51
    2.02281.01032.02281.0050
    2.77281.38702.77281.3818
    3.06271.53023.05271.5217
    1.50290.75301.50290.7949
    13.841621,385.8213.851621,383.59
    14.2200428.4714.24428.45

    * 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.

     ShortLong
    USD base
    USD quote
     

    where

    P&L — is Profit and Loss;

    Equity — is the account balance plus unrealized gains and minus unrealized losses.

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

  41. ForexEE provides SWAP-free accounts for Muslim clients. In Islamic accounts, no SWAP fee will be charged or added when your open positions are rolled over the night or weekend. Otherwise, Islamic accounts trading conditions are exactly the same as regular ECN accounts.

    Traders will be charged an additional commission for overnight positions on ECN Islamic accounts. The commission equals to SWAP.

    Commission is charged on rollover and is displayed in the Terminal. For ECN account the rollover commission is added to the commission for opening a trade. Current SWAPs are available in Market Watch → Symbols → Properties.

  42. 12. What instruments does ForexEE offer for trading?

  43. See Contract Specifications for ECN accounts.

  44. 13. What is a pip?

  45. 1 pip (point) is the smallest change in currency quotations, no matter in what direction a change occurs, up or down. For example, the exchange rate for EUR/USD has changed from 1.3614 to 1.3617, i.e. by 3 points. A pip is equal to 0.0001 for the nine major currency pairs. For pairs where the Japanese yen (JPY) is the quote currency, 1 pip is equal to 0.01.

  46. 14. What is Margin?

  47. Margin is the amount of cash or other Eligible Collateral that ForexEE 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 1.3843/45).

    LongShort

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

    USD/CHF (Market price is 0.9883/0.9886).

    LongShort

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

    LongShort

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

    NZD/USD (Market price is 0.7502/0.7507).

    LongShort

  48. 15. What types of accounts does ForexEE provide?

  49. You can find all the actual information on the company's website in the Trading Conditions section.

  50. 16. Where can I look up SWAPs?

  51. On the Forex market open positions rollover is done in the form of 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).
  52. All positions (Depending on Account Type) which are remaining open at 23:59:30 Trading Platform
    Time (Server Time) are subject to rollover.
    The SWAP is calculated and added to or deducted from the Customer’s account during the time period
    between 23:59:00 and 00:05:00. The exact time will be selected by the Company on its sole discretion.

    To look up swap rates in the Terminal:

    • 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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