Rules of trade and order execution
The technology implemented for the MT5 NDD type of accounts allows you to trade directly with the largest liquidity providers, such as the Bank of America, HSBC, Citi, UBS, Barclays and Deutsche Bank. As a result, being one of the world's leading electronic trading networks (ECN) using the new MetaTrader 5 trading platform.
The service is provided by FIBO Group Holdings, Ltd
The main advantages of trading on accounts of this type are as follows:
The market order will be executed at the best market price of liquidity providers at the moment when the order reaches the ECN system. Thus, there might be a slippage between the price at the terminal and the price of execution. The slippage might be profitable for you. Due to high liquidity in the ECN system under ordinary conditions there is usually either no slippage at all or it might be neglected. Due to low liquidity or explosive volatility the slippage is generally higher than on a quiet market
Once the price reaches the stop order level in the MT5, a request for an order execution would be transmitted via the bridge to the ECN system, where the order would be executed at the best market price of the liquidity providers at the moment the order reaches the system. Thus, in case of stop orders, as well as in case of execution of market order, slippage between the stop price and price of execution may occur. Moreover, slippage can also be in your favor. More information about the market execution features can be read above.
Once the price reaches the limit order level in the MT5, a request for the order execution is transmitted via the bridge to the ECN system. Please note that a partial execution of the order is possible. For example, you want to buy 200 lots EUR/USD at 1.27500. If only 100 lots at this price are available for buying, the total volume of your transaction will be 100 lots, which is the volume that is currently available on the market. Obviously, you are likely to encounter partial execution only when dealing with the large volume transactions.
Also, please note that if you use a limit order facility, 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.
If at any time “Equity” (the current balance including open positions) will be equal to or less than 100% of the margin (deposit), filled with open positions, a dealer has the right to cancel at his own discretion one or all open positions for the maintenance of the marginal requirements.
On weekends and holidays, margin requirements may be increased by 3 times compared to the standard conditions. Client is obliged to bring its open position in accordance with the increased margin requirements at least 30 minutes before the time of bidding.
Risk warning: Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, your level of experience and preparation of taking risk. The possibility exists that you could sustain a loss of some or of all of your initial investments and therefore you should not risk more than you are prepared to lose. Please seek independent financial advice if necessary.
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