The charts in the trading terminal are built based on the Bid price, but only long (Buy) positions are closed at the Bid price. Short (Sell) positions are closed at the Ask price.
As a result, your short positions will be closed at the price that is not displayed on the chart until you enable showing the Ask line in the chart settings.
Orders are closed automatically due to one of the following reasons:
There are several ways to open a new position in the terminal:
1. With the help of the instrument list:
2. Using "One-Click Trading":
3. Using the terminal’s main menu:
Such situations may happen to Buy Stop, Sell Stop, and Stop Loss orders.
When these orders are triggered, the system sends the Market order, which is executed at the current price, which may differ from the declared price.
Other types of pending orders (Buy Limit, Sell Limit, and Take Profit) are mostly executed at the specified price, but sometimes at the better price, if such price exists on the market when they are executed.
The leverage is a ratio between the trader’s own funds and borrowed funds, which a trader borrows from his broker. 1:20 leverage means that for a transaction you must have a trading account with amount 20 times less than the sum of the transaction.
Lot is a unit of transactions in trades.
The Stop order is a requirement, and when it is met, the platform generates a corresponding order, Market or Limit.
When you trade on the Forex market, your profit and losses are calculated as the difference between opening and closing prices. Orders can be opened both to buy a currency pair (in this case, a trader benefits from the asset price growth) and sell it (eventually, in the future a trader expects a lower price in comparison with the entry point). If the market moves in the direction opposite to a trader’s forecast, they incur losses. Let’s consider an example: Please note that the example doesn’t take into account spreads and (or) brokers’ commissions. You purchased 1 lot EURUSD at 1.2291, which means that you paid 122,910 USD to buy 100,000 EUR, because 1 lot equals to 100,000 units of the base currency. Let’s assume that the asset price rose and you decided to close your position. At that moment, the price of EURUSD was 1.2391. It turns out that you give 100,000 EUR that you bought earlier back to the market, but the y now cost 123,910 USD. Your profit will be the difference of the asset market prices when you bought and sell it: 123,910 USD – 122,910 USD = 1,000 USD. In case EURUSD started falling and you closed your position at 1.2191, you will incur losses, which are calculated in the same way: 1.2191 * 100,000 = 121,910 USD In this case, your losses are 1,000 USD.
121,910 USD – 122,910 USD = (-1,000 USD)
On Forex market, clients are charged with Rollover (Swap) charges for transiting the position over midnight. The amount of Swap depends on the difference between bank rates of the base currency and secondary currency in a currency pair. Swaps can have either positive or negative value. RoboMarkets swap rates are established in accordance with swap rates from our liquidity providers. Current swap rates for each trading instrument can be found in "Contract Specifications" section of our website.
Financial markets are not open on weekends.
Trading currencies, stocks, and other investment products is of the market nature and always involves significant risks. Because of sharp market fluctuations, you may both make much of your investments and completely lose them.
You may manage the risks (the ratio of possible financial losses to profits) by using the leverage value, and specific types of orders (Stop Loss / Take Profit) or other available tools. You should always remember that the higher the leverage and possible profit, the higher the risk level.
A pending order is the client's order to buy or sell a financial instrument at the specified price in the future.
There are four types of pending orders:
Buy Limit — to buy, when the future "Ask" price is equal to the specified value. The current price level is higher than the value of the placed order. Execution of this type of order means that the transaction will be made at the price specified in the order or at the price that is lower. Orders of this type are usually placed in anticipation that the instrument price, having fallen to a certain level, will increase.
Buy Stop — to buy, when the future "Ask" price is equal to the specified value. The current price level is lower than the value of the placed order. Execution of this type of order means that the transaction will be made at the price existing at the moment when the order is executed, which may be different from the price specified in the order. Orders of this type are usually placed in anticipation that the instrument price, having reached a certain level, will keep increasing.
Sell Limit — to sell, when the future "Bid" price is equal to the specified value. The current price level is lower than the value of the placed order. Execution of this type of order means that the transaction will be made at the price specified in the order or at the price that is higher. Orders of this type are usually placed in anticipation that the instrument price, having rising to a certain level, will decrease.
Sell Stop — to sell, when the future "Bid" price is equal to the specified value. The current price level is higher than the value of the placed order. Execution of this type of order means that the transaction will be made at the price existing at the moment when the order is executed, which may be different from the price specified in the order. Orders of this type are usually placed in anticipation that the instrument price, having reached a certain level, will keep decreasing.
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