How to Use our Services :: Trading
It is absolutely vital to define time when we analyse the trend of any product. Different time frames can have different trends and may require a lot of involvement from the trader. The examples shown below can help you to understand how we define the trading terms we use and what trading style is the most appropriate for you. We make use of graph examples from the downtrend move of EURUSD from ~1.4000.
In this case you will have a number of signals generated at the reversal points within a wide range. This depends on the market at a given time but generally orders are set quite far apart.
Under this trading period you will have more alerts compared to those given in the long term. The price range is narrowed but again, this depends on the market at a given time.
Under short term you can expect more trading activity, especially at the reversal points, where long and medium term interact. Keep in mind that short term orders/trades may add to a medium-long term position. Generally, order alerts are in a closer range.
There are three types of orders (trades): Normal, Partial Close and Stop.
Normal orders are entered separately for each trading period, often with different PTPs and SLPs. Typically, all trades form a single position either long (buy) or short (sell). But sometimes, if the trend under a trading period is different we may be for example long (buy position) in medium term and short (sell position) in short term. That way a trader can choose with a greater degree of freedom according to his trading horizon, risk and strategy. In order to gain further profits (or limit losses) we may increase or decrease our position under a specific trading term by making use of PC orders.
Partial Close (PC) orders as their name implies are used to close a part of a position. For example, a buy position usually consists of many buy trades, maybe in different trading terms, with different volume units. To enable profit taking (and rarely minimizing losses) we close a part of a trade at prices determined by our model before hits its final PTP (or SLP). This enables us to lock profits in a safer way and adjust our position according to our strategy. A PC order reduces the traded volume units starting from the first trade occurred (by date and time) under a specific trading term and when there are no more units left in that trade, reduces the volume of the second trade and so on. This special type of order is not counted in the T&O Monitor summary or in margin use and is displayed without a PTP or SLP. It has only VOL and EP and show the Profit (P) or Loss (L) result in the relevant column. When a PC filled its outcome added or subtracted from the balance and also reduces the volume of the trade from which the units deducted under the specific trading term.
Stop orders used when we close entirely a trade in a certain SLP and we want to reverse our position at that price. This occurs only when the product pass a critical price level. Another use is when a position set to close at SLP and we want to reopen a new position at another price, further from SLP, but only if the price moves to that point. Stop orders are not included in margin use and summaries. But when filled (trades), they are included normally.
It is possible that an order or trade status may be updated at a later time than the time actually happened. This is normal and will not cause any problems as all orders and trades are well ahead prepared. Once you have entered the last updated trading info, your orders and trades will be filled at your platform.
If a product administrator type or make a mistake in an order/trade you will be informed with the relevant email alert type (edited or erased).
RULES & LIMITS
Spreads are varied between trading platforms. It is also common that under extreme market conditions, volatility can increase resulting to wider spreads. To ensure that our orders will execute we use for our short term orders +/- 2 pips, for medium term orders +/- 3 pips and for long term orders +/- 5 pips. All orders entered are GTC (Good Till Cancelled) and our performance tables always include spreads.
Leverage is always 50:1. It is the most appropriate and commonly available between platforms.
Margin Usage limits are applied for portfolio protection. We set maximum limits, per product, at 25% for long term, 15% for medium term, and 10% for short term (overall 50%). You receive information up to the margin usage according to the trading terms you have subscribed (per product). For instance, if you have an active subscription in EURUSD, short term, the orders you will receive apply to a margin utilisation of only 10% of our product balance. The maximum usage per product, overall, is set on purpose at 50% because our top priority is the safety of our portfolio. A greater portfolio performance may be possible to be achieved but will increase the risk. We intend to achieve positive results, in the long run, with low risk and very low drawdown.
Loss limits are 12% for long term, 7% for medium term and 5% for short term (overall 25%), per product. Again, these limits are set for the reasons explained above.
It is possible for you to change leverage, margin usage and loss limits at your desired levels. You may or may not use our downloadable file "FX T&O" as is or modify it if necessary (not available to free users).