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Trading Basics

What is a "margin"?

This is, in essence, your safety net in percentage – this term is interchangeable with the term 'collateral'. It is the calculated required amount to have in your deposit in order to open a position on credit, as well as keeping that position open. Consider it as a part of your funds that is locked until the closing the open position, as you open a position using leverage with more capital than you have on your trading account.

What is a "bear" market?

A bear market is one which is distinguished by declining values. Consider is as the movement a bear makes when it strikes with its claws.

What is a "Pending Order"?

Pending order is the client's commitment to the brokerage company to buy or sell a security at a pre-defined price in the future. This type of orders is used for opening of a trade position provided the future quotes reach the pre-defined level. There are four types of pending orders available in the terminal:

Buy Limit — buy provided the future "ASK" price is equal to the pre-defined value. The current price level is higher than the value of the placed order. Orders of this type are usually placed in anticipation of that the security price, having fallen to a certain level, will increase;

Buy Stop — buy provided the future "ASK" price is equal to the pre-defined value. The current price level is lower than the value of the placed order. Orders of this type are usually placed in anticipation of that the security price, having reached a certain level, will keep on increasing;

Sell Limit — sell provided the future "BID" price is equal to the pre-defined value. The current price level is lower than the value of the placed order. Orders of this type are usually placed in anticipation of that the security price, having increased to a certain level, will fall;

Sell Stop — sell provided the future "BID" price is equal to the pre-defined value. The current price level is higher than the value of the placed order. Orders of this type are usually placed in anticipation of that the security price, having reached a certain level, will keep on falling.

What is an ask rate?

An ask rate is the buying price of the base currency.

What is a spread?

A spread is the difference between the buying price (the ask price) and selling price (the bid price) of a currency. The bid price is always inferior to the ask price.

HIGH RISK INVESTMENT WARNING: Leveraged trading in foreign currency contracts, contracts for difference or other off-exchange products carries a high level of risk and may not be suitable for everyone. Before trading, you are strongly advised to read and ensure that you understand the relevant risk disclosures and warnings here: Risk Disclosure Statement. There is a substantial risk that you may lose all of your initial investment. We advise you to consider whether trading leveraged products is appropriate for you in light of your own personal circumstances. We recommend that you seek independent financial advice and ensure that you fully understand all risks involved before trading. Trading through an online platform carries additional risks. Refer to our Regulation section here. Restricted Jurisdictions: We do not establish accounts to residents of certain jurisdictions including Japan, Canada and USA. For further details please see Terms & Conditions.

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