Hours:
The dealing desk is continually open between Sunday 5:00 PM and Friday 4:00 PM
Eastern Standard Time.
Mode
of Dealing: Quotations, Order Placement, and Confirmation available
over the phone or via the Internet. Bid
/Ask Spread: 4-5 pips on the Majors and 5-8 pips on the Crosses:
- U.S. Dollar / Japanese Yen (5 pips)
- U.S.
Dollar / Swiss Franc (5 pips)
- U.S. Dollar
/ Canadian Dollar (5 pips)
- Euro / U.S. Dollar
(4 pips)
- Euro / Great Britain Pound (5 pips)
- Euro / Japanese Yen (5 pips)
- Euro
/ Swiss Franc (5 pips)
- Euro / Canadian Dollar
(10 pips)
- Euro / Australian Dollar (20 pips)
- Great Britain Pound / U.S. Dollar (5 pips)
- Great
Britain Pound / Japanese Yen (8 pips)
- Great
Britain pound / Swiss Franc (10 pips)
- Swiss
Franc / Japanese Yen (5 pips)
- Australian
Dollar / U.S. Dollar (5 pips)
- Australian
Dollar / Canadian Dollar (10 pips)
- Australian
Dollar / Japanese Yen (10 pips)
- New Zealand
Dollar / U.S. Dollar (5 pips)
Order
Sizes: Trades are executed in standard sizes of 100,000 base currency.
Each unit of 100,000 is called a "lot". - U.S.
Dollar/ Japanese Yen (100,000 U.S. Dollars)
- U.S.
Dollar/ Swiss Franc (100,000 U.S. Dollars)
- U.S.
Dollar / Canadian Dollar (100,000 U.S. Dollars)
- Euro/
U.S. Dollar (100,000 Euros)
- Euro/ Great Britain
Pound (100,000 Euros)
- Euro/ Japanese Yen
(100,000 Euros)
- Euro / Swiss Franc (100,000
Euros)
- Euro / Canadian Dollar (100,000 Euros)
- Euro / Australian Dollar (100,000 Euros)
- Great Britain Pound/ U.S. Dollar (100,000
Great Britain Pounds)
- Great Britain Pound/
Swiss Franc (100,000 Great Britain Pounds)
- Great
Britain Pound/ Japanese Yen (100,000 Great Britain Pounds)
- Swiss
Franc / Japanese Yen (100,000 Swiss Francs)
- Australian
Dollar / U.S. Dollar (100,000 Australian Dollars)
- Australian
Dollar / Canadian Dollar (100,000 Australian Dollars)
- Australian
Dollar / Japanese Yen (100,000 Australian Dollars)
- New
Zealand Dollar / U.S. Dollar (100,000 New Zealand Dollars)
Types
of Orders: Market, Entry, Stop-Loss, and Limit. Margin:
enables foreign exchange trading to be conducted on a highly leveraged basis.
Every client is able to select the degree of leverage or gearing that the client
wishes to employ in trading. Unless the client specifies otherwise, sets
the leverage level at 's most lenient requirement. The requirements for leverage
vary with account size. - Accounts
Under $50,000 Minimum $1,000 in equity per open lot (1%)
- Accounts
$50,000 - $200,000 Minimum $2,000 equity per open lot (2%)
- Accounts
$200,000 - $500,000 Minimum $3,000 equity per open lot (3%)
- Accounts
Over $500,000 Minimum $5,000 equity per open lot (5%)
Equity
is the value of funds in the account adjusted for floating positions. One lot
has an approximate market value of $100,000. A requirement of $1,000 in equity
per open lot is, therefore, approximately equal to a maximum leverage or gearing
of 100:1. Dealers constantly monitor the
leverage levels of all accounts. Although makes no guarantees, the dealing
desk may attempt to contact clients whose accounts are near the minimum equity
requirement for their open positions. Clients are fully responsible for monitoring
the activity in their accounts. In the
event that an account exceeds its maximum allowable leverage, the dealer has the
right and will liquidate all positions in the account. This liquidation of all
positions will occur, regardless of the size or the nature of positions held within
the account. Rollover
/ Interest Policy: In the spot forex market, trades must be settled
in two business days. If a trader sells 100,000 euros on Tuesday, the trader must
deliver 100,00 euros on Thursday, unless the position is rolled over. As a service
to our traders, automatically rolls over all open positions to the next settlement
date at 5:00 PM Eastern Standard Time. Rollover involves exchanging the position
being held for a position expiring the following settlement date. The positions
being exchanged are usually not valued at the same price. If a trader is long
the currency bearing the higher interest rate, the position "being sold"
is worth more than the position being acquired. The reverse is also true; if a
trader is short the currency bearing the higher interest rate, the trader is acquiring
a position worth more than the one "being sold". The amount of the difference
varies greatly based on the currency pair, the interest rate differential between
the two currencies, and fluctuates day to day with the movement of prices. For
instance, on any given day, the rollover can be $1 per lot for Great Britain Pound/U.S.
Dollar and $15 per lot for U.S. Dollar/Japanese Yen. At
5:00 PM, funds are subtracted or added to accounts with open positions because
of the automatic roll over. For accounts that have a margin requirement of 2%
or more, funds are added to the account for positions in which the client is long
(holding) the currency bearing the higher interest rate. Fund are deducted in
the opposite circumstance. For accounts that do not have a 2% margin requirement,
the roll over amount is deducted from the account for each position regardless
of the account's holdings. This 2% margin requirement is the most generous policy
available to traders in the forex industry, as many firms require 3-5% minimum
margin before traders can benefit from rollover. Note:
On Wednesdays, the amount added or subtracted to an account as a result of
rolling over a position tends to be around three times the usual amount. This
"3-Day" rollover accounts for settlement of trades through the weekend
period. |