Forex Trading Terms

Description of the Broker's Trading Conditions

Essential influence on a choice of the financial intermediary and the subsequent opening of a real account renders trading conditions of Forex brokers. On their list experienced players and the beginning traders, first of all, pay attention to a spread because the spread is that indicator which allows estimating expenses and profitability of each transaction.

Brokerage companies understand that smaller spreads are the most attractive to traders, therefore, choose one of two ways:

  • Reduce the spread, and from each separate transaction the profit decreases, but the income from the total quantity of transactions – grows, respectively narrower spreads are profitable for clients;
  • Increase the spread in the case of which the amount of the made transactions decreases, but the profit is created thanks to the exposure of a big spread.

However, trading in the Forex market and conditions accompanying it aren't limited only to spread sizes, and includes a number of options and criteria which are provided by brokers for maintaining a trading activity.



news-image-1
Improvements to Alpari's trading conditions

Dear clients, In our continuous efforts to provide the best possible experience for our clients, we are pleased to announce some improvements to our trading conditions. 

news-image-2
Trading on BRAComp instrument

Dear Clients, We would like to bring to your attention that from September 2, 2019, due to the changes in trading conditions, trading on the BRAComp instrument will be limited&n...

news-image-3
USDZAR spreads are decreased 8 times!

South Africa is the largest exporter of gold and diamonds in Africa. The national currency ZAR (South African rand) has established itself as a volatile and professional HFT tool. Th...

news-image-4
“Close Only” mode on some trading instruments

Dear Clients, We would like to bring to your attention that from July 15, 2019, due to the lack of demand, trading on the following instruments will be limited to “Close Only&r...

news-image-5
Summer bank holiday in the U.K. on 26.08.2019

FTSE100 Index will not be traded on August 26, 2019FTSE100 Index will not be traded on August 26, 2019Please be aware that there will be an official summer bank holiday in the U.K. T...

news-image-6
Trade Gold on favorable terms with AMarkets

Dear clients, We are pleased to inform you that starting from today XAUUSD margin requirements have been reduced by two times to 0.5%. 

news-image-7
Changing day of week when triple SWAP is applied

Dear Clients! Please be advised that starting from 29th of July, 2019, Renesource Capital AS IBS is changing the day of the week when triple SWAP (rollover, TomNext) rates for EURRUB...

news-image-8
Changes to the trading conditions on Nano accounts

Dear clients, Please be informed that as of 22/07/2019, Alpari will offer floating spreads on all instruments on Nano accounts.

news-image-9
Changes to Alpari's terms of service

Dear clients, In our continuous efforts to encourage trading activity among our clients, please be informed of the following change to our terms of service: As of 01/07/2019, negativ...

news-image-10
New edition of Agency Agreement to come into force

Dear partners!  Please, be informed that due to enrollment of a new trading account type (MT5 NDD), a new edition of Agency Agreement will come into force the 17th of June, 2019...


Description of the Broker's Trading Conditions

Essential influence on a choice of the financial intermediary and the subsequent opening of a real account renders trading conditions of Forex brokers. On their list experienced players and the beginning traders, first of all, pay attention to a spread because the spread is that indicator which allows estimating expenses and profitability of each transaction.

Brokerage companies understand that smaller spreads are the most attractive to traders, therefore, choose one of two ways:

  • Reduce the spread, and from each separate transaction the profit decreases, but the income from the total quantity of transactions – grows, respectively narrower spreads are profitable for clients;
  • Increase the spread in the case of which the amount of the made transactions decreases, but the profit is created thanks to the exposure of a big spread.

However, trading in the Forex market and conditions accompanying it aren't limited only to spread sizes, and includes a number of options and criteria which are provided by brokers for maintaining a trading activity.

Trading Conditions of Forex Brokers

A main goal of the conditions provided by the companies is satisfaction of traders' requests, irrespective of their experience and skills in the sphere of currency transactions. Today brokers try to consider all current trends and Forex market requirements, providing a set of flexible options for carrying out an effective trading activity, informing clients in news blocks, both on the accompanying changes, and at the start of new tools and conditions. The most important trading conditions are given in this material.

  • Margin Call level, i.e. the level of a necessary margin when the broker can compulsorily close open deals of the trader, without notifying the client;
  • Stop Out level means the level of a necessary margin in case of which trading open deals are closed by the current broker quotes;

Types of Order Execution:

  • Instant Execution when execution of the order takes place at the price offered the broker. If the broker agrees with the price, the order will be performed, in case of rejection of the price by the broker, there is "requoting" (Requote) – the broker returns back suggested price;
  • Execution by Market in the case of this mode of order execution the broker makes the decision on its price, without its regulation with the trader;
  • Execution on Request when the broker informs the trader on execution of the order on stated price.
  • Stop Level determined in the pips(points) from market price. Behind borders of this level the broker allows to establish Take Profit or Stop Loss for the carried-out order;
  • Quoting type (five-digit or four-digit). Quoting with 4 signs after a comma is the most popular, five-digit in turn, interferes with accurate visual estimation of a condition of the fast market;
  • Minimum size of the deposit . When exists an option to open account with only several dollars, the beginner can practice in actual transactions, and more experienced trader to check both Forex trading strategies, and conditions of still unfamiliar company without special risks.
By visiting our website and services, you agree to the conditions of use of cookies. Learn more
I agree