Trading rules & execution
Construction of charts
In the MetaTrader 4 trading system, in construction of price charts, both the maximum price (High) and the minimum price (Low) are taken at Bid price.
A Standard lot would represent 100,000 units of the base currency, where as a minimum lot is 0.01 of standard lot (or 1,000 of the base currency).
A Mini lot would represent 10,000 units of the base currency.
A Micro lot would represent 1,000 units of the base currency.
When working with micro lots (0.01-0.09) only one transaction per second can be executed.
Rules for running and executing pending orders in the Forex market
Acceptance and modification of pending orders may be postponed 3 minutes before the release of significant macroeconomic figures and important political or economic news.
Pending orders or T/P and S/L orders can be placed not closer than spread per instrument. The minimum distance for S/L orders may be increased up to 10 spreads 10 minutes before the release of significant figures of macroeconomic statistics and important political or economic news. 30 minutes before market close, the level for S/L orders is increased to 25 spreads. This rule applies also to the opening of pending and market orders with a pre-determined S/L within the range of 10 (25) spreads.
In case S/L order was placed within the range of 10 spreads, MetaTrader 4 software does not allow one to separately modify connected S/L and T/P orders. Hence any attempt to modify T/P, will be blocked automatically.
Modification and removal of T/P and S/L orders as modification or close of any pending order will be rejected if the market price is 2 pips close to them.
Rules for running and executing pending orders in the CFD market
CFD orders are executed according to “market execution” technology. The detailed description of execution for each type of order is available below.
The market order will be executed at the best market price available at the moment of execution. Thus, there might be slippage between the price at the terminal and the price of execution. The slippage may be profitable for you.
The stop order will be executed at the best market price at the moment when the price reaches the stop order level in MT4. Thus, there might be slippage between the price at the terminal and the price of execution. The slippage may be profitable for you.
Once the price reaches the limit order level in MT4, a request for the order execution is transmitted to the system. Please note that if you use a limit order, you will never get a price worse than the one that was stated in your order i.e., you will either get your order executed at the requested price or at a better price.
The minimum distance for which it is possible to place pending orders or place T/P and S/L orders is equal to two spreads per the instrument.
If the market price comes close near to the values of T/P or S/L orders, or the opening price of a deferred order within a distance of 2 spreads, the program will automatically prohibit any modification or deletion of such orders.
Execution of orders in the Forex market if trading session opens with a gap or a gap occurs during the day
If the Forex market opens with a gap or a gap occurs during the day (it generally happens after weekends or holidays, upon release of significant macroeconomic data, economic or political news, or in the event of Force-Majeure events), orders are executed as follows:
- Take Profit (T/P) orders are executed at stated prices;
- Stop Loss (S/L) orders are executed at stated prices;
- Stop Loss (S/L) orders set for lock positions, are executed at first market prices;
- Limit orders are executed at stated prices;
- Buy Stop and Sell Stop orders for position opening are executed at first market prices.
Closing expired CFD contracts
Those positions that were not closed by the client himself before the expiration of the contract for difference will be closed by the dealers at the latest available quote not later than the beginning of the week following after the expiration of the contract.
If at any time Equity (current balance including open positions) is equal to or less than 20% of the margin used by opened positions, a dealer is entitled at his discretion to close one or all open positions in order to meet margin requirements.
Margin requirements may increase from 0.5% up to 2% on weekends and holidays (i.e. maximum leverage is 1:50 for that period). Customer is to bring all opened positions in line with increased margin requirements by the time market is closed.