ForexTrader Trading Handbook

Fees

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TradeKing Forex charges no trading commissions or transaction fees. TradeKing Forex is compensated for its services through the bid/ask spread.

All banking fees, including but not limited to wire transfer charges, are the responsibility of the customer and will be deducted from the customer's trading account.

TradeKing Forex charges a data fee of $15 per month if there is no trading activity or no open positions for a period of 90 days or more. Contact us if you wish to disable your account temporarily and avoid this fee.

First In First Out (FIFO)

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Open positions are closed according to the (First in First Out) FIFO accounting rule. All trades opened within a particular currency pair or product are closed in the order in which they were originally opened.

Margin Requirements

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The minimum margin requirement is 2% (or 50:1) on the majors, 5% (or 20:1) for the minor currency pairs, and 100% (or 1:1) for spot gold and silver. View the full list of margin requirements by currency pair.

Open positions are required to be fully margined at all times. There are no margin calls in forex trading. If a customer's account balance falls below required 100% maintenance margin, all open positions are subject to automatic liquidation. Liquidations are handled in the following manner: the net open position with the greatest unrealized loss is closed first, followed by the next largest losing position and so on, until the maintenance margin requirement is satisfied or exceeded. Depending on the size and unrealized P&L of the open positions, customers risk having ALL open positions liquidated in order to meet the minimum margin requirement and incurring losses greater than the initial required margin.

Traders always have the option of employing a lower degree of leverage. You may request a leverage change at any time by logging into your account and going to the MyAccount section of the website. Increasing leverage increases risk.

Margin requirements are subject to change without notice, at the sole discretion of TradeKing Forex.

Order Execution

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  • Market Orders:

    Market orders are executed at the best available price at the time the order is received.

  • Instant Execution Mode:

    Instant Execution is designed for use in combination with the one-click dealing feature available in the TradeKing ForexTrader Desktop trading platform. With Instant Execution, orders initiated at the market price will only be executed at the requested rate or within a trader-specified deviation (measured in pips). We will not requote prices. The default setting is 1 pip deviation, so if the market moves unfavorably away from the requested price by more than 1 pip, you order will not be executed. However, if the market moves in your favor by any amount then the order will be executed at the improved price. You can modify the deviation setting at any time, by product, within the TradeKing ForexTrader Desktop platform.

  • Limit Orders:

    Limit orders are executed at the order rate or better. Sell limit orders are filled when the bid reaches the requested rate; limit orders to buy are filled on the offer.

  • Stop Orders:

    Stop orders become market orders when a predefined order rate is reached. Stop orders are executed at the best available price, depending on available liquidity. Buy Stop orders are filled on the offer price and Sell Stop orders are filled at the bid price.

    Time and sales reports for a specific period can be requested by contacting customer service.

Order Execution In Volatile/Gap Market Conditions

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When economic data releases or major news events are announced, prices may "gap" as the market reacts and adjusts to the news. Market conditions can be extremely volatile during these times - prices may move dramatically in one direction and in some cases there may be no available liquidity for a short period. Gap market conditions are also common when trading resumes after a weekend or holiday. During gap market conditions, stop and limit orders may be executed at prices far away from the requested price. For maximum control over order execution, customers may employ Instant Execution mode.

Order Expiry

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End of Day (EOD) orders automatically expire at 5pm ET on the same day the order was entered. Good 'til Cancelled (GTC) orders automatically expire on the Saturday following the 90th calendar day from the date the order was entered.

Orders Left Over the Weekend or Holidays

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Our trading hours are from Sunday at 5 pm ET through Friday at 5 pm ET. Orders (e.g. Stops, Limits, and contingent orders) left pending over a weekend or holiday period will not be executed until TradeKing Forex resumes regular trading hours.

Order Types

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  • Market Orders

    Market orders are executed at the best available price at the time the order is received.

  • Limit Orders

    Limit orders are executed at the order rate or better. Sell limit orders are filled when the bid reaches the requested rate; limit orders to buy are filled on the offer.

  • Stop Orders

    Stop orders become market orders when a predefined order rate is reached. Stop orders are executed at the best available price, depending on available liquidity. Buy Stop orders are filled on the offer price and Sell Stop orders are filled at the bid price.

  • One Cancels Other (OCO's)

    A contingent order providing that one part of the order is cancelled if the other part is executed. If one part of the order is filled, the other is automatically cancelled.

  • If / Then

    An If/Then order provides that if the first order ("If" order) is executed, the second order ("Then" order) becomes an active unassociated single order. Unassociated orders are not attached to a trade and act independently of any position updates. In cases where the "If" order does not execute, the "Then" single order will remain dormant and will not be executed when the market reaches the specified rate. When either part of an If / Then order is cancelled, all parts of the order are cancelled as well.

  • If /Then OCO

    An If/Then OCO provides that if the first order ("If" order) is executed, the second order ("Then" order) becomes an active unassociated One Cancels Other (OCO) order. Unassociated orders are not attached to a trade and act independently of any position updates. The execution of either one of the two "Then" orders automatically cancels the other.

    In cases where the 'If' single order does not execute, the "Then" OCO order will remain dormant and will not be executed when the market reaches the specified rate. When any part of an If / Then OCO order is cancelled, including either leg of the OCO order, all parts of the order are cancelled as well.

  • Trailing Stops

    A trailing stop allows a trade to continue to gain in value when the market price moves in a favorable direction, but automatically closes the trade if the market price suddenly moves in an unfavorable direction by a specified distance.

    When the market price moves in a favorable direction (up for long positions, down for short positions), the trigger price follows the market price by the specified stop distance. If the market price moves in an unfavorable direction, the trigger price stays stationary and the distance between this price and the market price becomes smaller. If the market price continues to move in an unfavorable direction until it reaches the trigger price, an order is triggered to close the trade.

All of the above orders may be entered as Day Orders, entered today and good until end of NY business day (5pm ET). Or, clients may choose to enter a Good 'til Cancelled Order (GTC), which is valid for 90 days days from the date the order is entered or until the order is executed or cancelled.

Orders remain open until they are triggered or cancelled. If a position is closed manually, any order(s) relating to that position must also be cancelled.

Placing contingent orders may not necessarily limit your losses.

Phone Trading

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Phone trading is available to customers during market hours. To place a trade over the phone, contact customer service.

Phone Trading Instructions
  • State your Account Number.

    You will be asked to verify the name on the account and answer other security questions

  • Ask for the current price i.e.

    "I would like a price on Euro/Dollar"

  • We will provide the current bid/offer.

    "Euro/Dollar is trading at 1.28551/562" (the first number being the bid, the second the offer)

  • If you wish to place a market order, state your interest.

    "I sell 50,000 of Euro/Dollar at the market"

We will provide verbal confirmation of the trade. Your trade will be entered on your behalf and the trade will appear in the trading platform immediately.

If you do not wish to deal at the quoted levels, simply say "nothing done."

You may also request that a stop or limit order be placed on your behalf. Be sure to indicate the type of order and the price.

All trades executed via the phone are subject to a pre-deal margin availability check and will be manually entered into the customer's account for integrated P&L analysis and reporting.

All phone orders will be recorded to ensure fairness and accuracy for all parties involved.

Rollovers

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We automatically roll forward all open positions following the close of NY trading at 5:00pm ET. Trading is typically suspended for up to 1 minute during the roll process. The amount paid or earned depends on the direction of the open position and the interest rate differential between the two currencies involved.

For example, assuming Australian interest rates are significantly higher than the United States', a trader long AUD/USD (i.e. holding Australian Dollars), is paid interest upon rollover. Conversely, if a trader is short AUD/USD (i.e. holding US Dollars) interest will be debited upon the rollover.

Rollover credits or debits are applied daily to a customer's account for each open position held overnight. Rollovers are processed at 5:00pm ET, so any open positions at that time will automatically be rolled forward and an interest debit or credit will be applied to your account.

Weekends and Holidays

Rollovers for positions held over the weekend will be posted on Wednesday; as a result the rollover applied on Wednesday will be for three days of rollover interest.

A holiday rollover will occur when the currency traded has a major holiday and the banks are closed. A holiday rollover will typically be applied two days before the holiday.

Rollover rates are accessible from the TradeKing ForexTrader Desktop trading platform and in MyAccount. Learn more about rollovers in FAQs.

Trading Hours

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Forex trading is available 24 hours a day from 5:00pm ET Sunday through 5:00pm ET on Friday, including most U.S. holidays. These conditions may result in wider spreads for some currency pairs based on market liquidity.

Spot gold and silver trading is available from 6 pm ET Sunday through 5 pm ET Friday, and follow CME holiday closures. Be advised of the potential for illiquid market conditions outside of NY trading hours (8am-5pm ET).