Trading FAQ

1. Why was my position closed at the price, which was not on the chart?

   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.

   In MetaTrader terminals, it can be done in "Charts" -> "Settings".

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2. Why was the order closed without any actions on my part?

   Orders are closed automatically due to one of the following reasons:

   1. In case of Stop Out (margin level on your trading account reached Stop Out value).
   2. The price reached Stop Loss or Take Profit.
   3. In case Trailing Stop worked.

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3. How do I open a position in the terminal?

   There are several ways to open a new position in the terminal:

   1. With the help of the instrument list:

   • Right-click on the instrument, which you decided to trade.
   • Choose "New order" from the menu.
   • Set order parameters (type, volume, Stop Loss and Take Profit levels).
   • Choose the position type: long (Buy) or short (Sell) and click the corresponding button.

   2. Using "One-Click Trading":

   • Add "One-Click Trading" widget by right-clicking on the chart and choose the corresponding menu item.
   • Specify order volume and direction (Sell or Buy).

   3. Using the terminal’s main menu:

   • Choose "New order" from "Tools" menu or click "New order" in the panel below the main menu.
   • Choose the required trading instrument and follow the instructions from the item 1 of this list.

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4. Why was my order executed not at the declared price?

   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.

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5. What is leverage?

   The leverage is a ratio between the trader’s own funds and borrowed funds, which a trader borrows from his broker. 1:100 leverage means that for a transaction you must have a trading account with amount 100 times less than the sum of the transaction.

   Example: a trader chooses the 1:500 leverage and has 200 euros on his account. Leverage 1:500 allows him to buy a contract worth 100.000 euros.

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6. What is a lot?

   Lot is a unit of transactions in trades.

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7. How does the stop order work?

   The Stop order is a requirement, and when it is met, the platform generates a corresponding order, Market or Limit.

   1. A Market order is created in case of Buy Stop and Sell Stop orders (orders to buy/sell an asset), and when the asset price reaches Stop Loss level (an order to close the position).
   2. A Limit order is created in case of Stop Limit order, when the asset price reaches Stop level specified in the order.

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8. How are profit and losses calculated when trading Forex instruments?

   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
   121,910 USD – 122,910 USD = (-1,000 USD)

   In this case, your losses are 1,000 USD.

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9. How is a Swap calculated?

   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.

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10. Why can I not sell at the weekend?

    The FOREX is not open on the weekend.

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11. How risky are operations in Forex?

    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.

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12. What types of pending orders are there?

    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:

    1. 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.

    2. 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.

    3. 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.

    4. 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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