Free margin is money on trading account that can be used for opening new positions.
FAQ
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Frequently asked questions
It is a limiting order attached to open position. Take Profit closes position when the expected profit is achieved.
5. How big is the risk of trade operations?
Operations carried out on Forex as well as any other financial market have two things in common risk and profitability. The higher the risk (in this case the amount of credit), the more profit investor expects to get. You reduce potential risk not only with the help of regulation of credit basket, but also with the help of protecting stop-orders.
6. How much can I earn with Forex?
Your income depends wholly on your ability to appreciate market situation right and open or close positions on time.
7. How to postpone a position in Forex market till the next day?
Postponing a Forex position till the next day is carried out in form of market dispute the results of which can be negative and positive depending on difference in interest rates and amount of swop-points the brokers counteragent has. Supposedly, 4.25 % is the European interest rate and 3.5 % is the American one. And you have opened a selling position for 1.0 lot in EUR/USD. To do that you must sell 100,000 EUR. It means you must borrow this money with 4, 25 % annual interest rate. Having sold Euro you buy dollars which you deposit at 3.5 % annual interest rate. Your total losses after the transaction will equal (4.25-3.5) % or 675 dollars a year and 1.85 dollars a day which is the same with EUR/USD 0.9000 rate of exchange. So on one Forex item with an opened selling position in EUR/USD you will be charged .85 a day. And if you have opened a buying item you will be getting $ 1.85 every day. In reality, you will be losing a little bit more than and getting a little bit less than $ 1.85. This little bit will be taken by a broker as a reward for postponing your position till the next day. The sum is named storage. For changing a position from Wednesday to Thursday night the storage triples.
8. How many deals do I have to make in a week?
You can make as many deals as necessary based upon your trading tactics.
9. What is the minimum deposit?
To activate a real account you need to put initial deposit at least 20 American dollars.
To make an order you need to click the instrument twice with the left button of your mouse, fill in information in the form and press Sell or Buy. You can also use take profit and stop-loss options.
11. How to calculate profit in Forex market?
Lets suppose you are going to buy USD/JPY for 2.0 lot with Forex for 117.89. You closed position of 118.40. What is the profit? Opening the deal you bought 200,000 USD and sold 117.89*200,000 = 23,578,000 JPY. Closing the deal you sold 200,000 USD and bought 118.40 * 200,000 = 23,680,000 JPY. Dollars are mutually cancelled, and yen is equal to +102,000 JPY, or according to the rate of exchange of the closing deal it amounts to +861.49 USD. That is your profit.
12. What is the difference between trading on real account and virtual (training) account?
One of the significant differences is that all operations with virtual accounts are carried out without bankrolls, and its also possible to make deals, arrange, change, cancel orders on weekends, and while working with real accounts restrict people to working time according to the terms of the treaty.
The profit is formed with the help of market-making principles of work of Forex-brokers, when a big clientage with counter-claims and commission in form of spread is accumulated and with the help of hedging system of multi-position on external counteragents which is a secret and, to a certain extent, unique for every Forex broker market information.
Its a stopping order attached to open position. The Stoploss closes position when the expected loss is achieved in order to protect deposit from further growing losses.
You need to fill in the form of withdrawal in the trader room, write down requisites, check if the entered sum exceeds available money and send. Data handling takes two days.
16. Does E-Global have any restrictions for scalping?
No, we do not have any restrictions for scalping strategies.
AER is an Annual Earning Rate - the percentage of funds you obtain from the amount of free funds on your current account.
18. What regulatory organisation are they registered with and what protections does this afford you? How the business model works?
The company is registered in the
Our company does not have NFA/FSA number at the moment, E-Global as an internet broker works with capital niche, which amounts less than 0,000. We are planning to get hold of NFA as far as our company achieves higher positions and client base. However we have all the main licenses for our software products and we cooperate with b2bits.com.
How the business model works: When you transfer funds to us, they go to the counteragents account. Counteragent is a company which serves as a second party of a deal that broker makes upon clients orders received through trading system MetaTrader 4. Counteragents are usually big companies, which operate with significant sums of funds from wide variety of clients worldwide or certain big fishes in a market. Basically, our company is the middleman between a client and counteragent. Therefore we build our client relationships on trust, where the clients trust the company to transfer the funds to the market. To check the quality of our operations and stability of execution a new client should start trading with the small amount of money; practice on demo accounts; and should not hesitate to get an online customer support, provided by means of LiveChat and ICQ.
19. How to calculate your swap rates?
A Swap (Rollover) refers to the interest traders may earn or be charged daily. To calculate the swap take the interest rate differential between the two underlying currencies.
Example:
Let us assume EUR/USD currency pair, so we need to find out what is the interest rates in Europe and the
Sell EUR/USD means borrowing EUR to buy USD. Since bought currencys swap rate (EUR) is bigger than borrowed currencys swap rate (USD). Swap includes brokers commission fees for rolling over the position. Thus, the trader will earn interest income: 4.25% - 3.5% +0.25% = 1%.
Swap rate (Short for sell) = (
(100 000 X (0.75%+0.25%)/100) X 1.45/365= 3.97 USD.
Swap rate (Long for buy) = (
(100 000 X (0.75%-0.25%)/100) X 1.45/365=1.98 USD.
We provide a list of daily swap rates for every currency pairs. The swap value is quantified in pips; traders need to convert pip to dollar by calculating pip value of corresponding currency pair.
