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.


RoboForex: changes in trading conditions for the Turkish Lira instruments (Elections in Turkey)
RoboForex: changes in trading conditions for the Turkish Lira instruments (Elections in Turkey)

Dear Clients and Partners, We’re informing you that due to the presidential elections in Turkey on June 25th 2018, trading conditions for the Turkish Lira (TRY) instruments wil...

Temporary margin rate increase for Turkish lira (TRY) currency pairs
Temporary margin rate increase for Turkish lira (TRY) currency pairs

Dear Customers!   Please be informed that due to upcoming Turkish General Election (Presidential Election and Parliamentary Election) which are scheduled to occur on 24 June 201...

Improved conditions for options trading
Improved conditions for options trading

Dear clients, From the 18th of June, new and improved conditions for options trading will come into effect. Changes to the conditions include: The addition of new timeframes for the ...

CFD – Rollover (USOIL)
CFD – Rollover (USOIL)

Dear Clients, Please note that USOIL contract rollover procedures will start on June 18: there will be a new August Contract (USOIL.AUG8) available for trading, July contract (USOIL....

Updated version of Agency Agreement
Updated version of Agency Agreement

Dear partners, Please be informed that from July 1st, 2018 a new version of the Agency Agreement will come into force. The main part of the Agreement has been amended: clause 4.2.1 h...

Dukascopy Bank will keep leverage up to 1:200 & binaries
Dukascopy Bank will keep leverage up to 1:200 & binaries

ESMA's recent restrictions imposed upon brokers of the European Union (EU) raised many questions. Dukascopy Bank is regulated by the Swiss Financial Market Supervisory Authority ...

New LiteForex Client Agreement
New LiteForex Client Agreement

Dear clients,Please be aware that a new Client Agreement will enter into force on 1st June, 2018. The new Client Agreement includes the terms and conditions of the current Public Off...

Company reduces USDTRY and EURTRY leverage
Company reduces USDTRY and EURTRY leverage

Dear clients, By the decision of the risk department, the company will reduce the USDTRY and EURTRY leverage by two times as compared to the current values. The changes will come int...

Alpari has updated its Privacy Policy
Alpari has updated its Privacy Policy

Dear clients, Please be aware that Alpari has made some amendments to its Privacy Policy document. You can follow the link here to familiarise yourself with these changes. Alpari&rsq...

Privacy policy update
Privacy policy update

We would like to inform you that as of May 25, 2018, we will be subject to the provisions of the General Data Protection Regulation (Regulation 2016/679), 'GDPR'. GDPR enhanc...


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.
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