Trading FAQ

Frequently asked questions about trading, order execution, and market mechanics on the Trading Platform.

Order Types

What is a market order?

A market order executes immediately at the best available price. Use it when you want to enter or exit the market quickly. The downside is you may experience slippage (price difference between expected and actual execution) during volatile conditions.

What is a limit order?

A limit order executes only at your specified price or better. A buy limit is placed below the current price; a sell limit is placed above. The order waits until the market reaches your price. There's no guarantee of execution—price may never reach your level.

What is a stop order?

A stop order triggers a market order when price reaches your specified level. A buy stop is placed above current price (for breakout entries); a sell stop is placed below (for breakdown entries). Unlike limit orders, once triggered, it becomes a market order with potential slippage.

What is a stop-limit order?

A stop-limit order triggers a limit order (not market) when price reaches your stop level. This gives you price protection but risks not being filled if the market gaps past your limit price.

What does GTC, IOC, FOK mean?

Execution

What is slippage?

Slippage is the difference between your expected execution price and the actual price. It occurs when market moves quickly between order placement and execution. Slippage can be positive (better price) or negative (worse price). It's more common during:

• High volatility periods
• Major news announcements
• Market open/close
• Low liquidity conditions

What is requoting?

Requoting occurs when the price changes between your order request and execution. Your broker sends back a new quote for you to accept or reject. Frequent requotes may indicate poor execution quality or highly volatile conditions.

Why was my order rejected?

Orders may be rejected for several reasons:

• Insufficient margin: Not enough free margin for the trade
• Market closed: Instrument not trading at this time
• Invalid price: Price too far from market (stale quote)
• Position limit: Maximum positions reached
• Size invalid: Below minimum or above maximum lot size

What are the trading hours?

Trading hours vary by instrument:

Spreads & Costs

What is the spread?

The spread is the difference between the bid (sell) price and ask (buy) price. It's the primary cost of trading and represents the broker's compensation. Tighter spreads mean lower trading costs.

Are spreads fixed or variable?

Spreads on our platform are variable, meaning they fluctuate based on market conditions. They're typically tighter during high-liquidity periods (London/NY overlap) and wider during low-liquidity periods (Asian session) or high-volatility events.

What is swap/rollover?

Swap is the interest charged or credited for holding positions overnight. Forex trades involve borrowing one currency to buy another, so interest differentials apply. Swap can be positive (you receive) or negative (you pay) depending on the direction and currency pair.

When is swap charged?

Swap is charged at the daily rollover time, typically 22:00 UTC (5pm EST). Wednesday carries triple swap to account for the weekend when markets are closed.

Are there commissions?

Commission structure depends on your broker account type. Some accounts have zero commission with wider spreads; others have tight spreads plus commission. Check your broker's fee schedule for specific rates.

Leverage & Margin

What is leverage?

Leverage allows you to control a larger position with a smaller deposit. For example, 1:100 leverage means you can control $100,000 with $1,000. While leverage magnifies potential profits, it equally magnifies potential losses.

What is margin?

Margin is the deposit required to open and maintain a leveraged position. It's calculated as: Position Value ÷ Leverage. For example, a $100,000 position with 1:100 leverage requires $1,000 margin.

What is a margin call?

A margin call occurs when your equity falls below the margin call level (typically 100% margin level). At this point, you cannot open new positions and should add funds or close positions to restore margin.

What is stop-out?

Stop-out occurs when your margin level falls below the stop-out level (typically 50%). Your broker will automatically close your positions, starting with the largest loss, until margin level is restored. This protects against negative balance.

How do I calculate margin requirements?

Use this formula:

Example: 0.5 lots EURUSD at 1.1000 with 1:100 leverage
= (0.5 × 100,000 × 1.1000) ÷ 100 = $550 margin required

Stop Loss & Take Profit

What is a stop loss?

A stop loss is a protective order that automatically closes your position when price reaches a specified level, limiting your loss. It's essential for risk management—every trade should have a stop loss.

Can stop loss be guaranteed?

Standard stop losses are not guaranteed and may experience slippage during gaps or extreme volatility. Some brokers offer guaranteed stop losses (GSL) for an additional cost, which execute at your exact price regardless of market conditions.

What is a trailing stop?

A trailing stop moves with the market in your favour, locking in profits while protecting against reversals. For example, a 50-pip trailing stop on a buy position rises as price rises but doesn't fall if price falls, eventually triggering when price drops 50 pips from its highest point.

What is take profit?

A take profit order automatically closes your position at a specified profit level. It locks in gains without requiring you to monitor the position constantly.

Can my stop loss be hit when I'm not looking?

Yes, stop losses execute automatically regardless of whether you're online. That's the point—they protect you even when you can't monitor the market. Your broker executes the stop based on market prices, not your platform connection.

Position Sizing

What is a lot?

A lot is the standard unit of trading. In forex:

How should I determine my position size?

Position size should be based on your risk, not potential profit. Use the formula:

The platform's Risk Calculator automates this—enable it in the order panel.

What percentage should I risk per trade?

Professional traders typically risk 1-2% of their account per trade. This ensures survival during losing streaks. Risking more (e.g., 5-10%) leads to rapid account depletion during drawdowns.

Market Analysis

What is technical analysis?

Technical analysis studies past price movements and chart patterns to predict future price direction. It uses charts, indicators (like moving averages, RSI), and patterns to identify trading opportunities.

What is fundamental analysis?

Fundamental analysis evaluates economic, financial, and political factors that affect currency values. It includes economic indicators (GDP, employment), interest rate decisions, political events, and central bank policies.

Which analysis method is better?

Neither is inherently better—successful traders often combine both. Technical analysis helps with timing entries and exits; fundamental analysis helps understand the bigger picture and market direction.

Risk Management

Why do I keep losing money?

Common reasons for consistent losses:

• Trading without a plan or strategy
• Risk per trade too high (over 2-3%)
• No stop losses or moving them further
• Revenge trading after losses
• Over-leveraging positions
• Ignoring risk:reward ratios
• Trading during major news without preparation

What is a good risk:reward ratio?

A minimum of 1:2 is recommended—risk $1 to make $2. With this ratio, you can be profitable with only a 40% win rate. Many successful traders aim for 1:3 or higher.

How many trades should I take per day?

Quality over quantity. There's no set number—it depends on your strategy and available setups. Taking too many trades (overtrading) often leads to poor decisions. Many successful traders take only 1-5 high-quality trades per week.

Related Resources

• Placing Trades Tutorial - Step-by-step guide
• Risk Management Features - Platform tools
• Trading Basics - Fundamental concepts
• Account FAQ - Account questions
• Technical FAQ - Platform issues