The basic advantages of trading on accounts of the above type are:
Market orders will be executed at the best market price of the liquidity providers once the order reaches the electronic trading system where it will be executed at the NDD (No Dealing Desk) technology. Thus, it may slip between the price that you see in the terminal, and the price of execution. Moreover, such slippage can also be in your favor. Since the system can provide you with high liquidity, this slippage, under the normal conditions, either does not exist at all or is immaterial. Under low liquidity or explosive volatility conditions, the slippage is generally higher than on a quiet market.
Once the price reaches the stop order level in the cTrader, a request for an order execution would be transmitted via the bridge to the trading 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 cTrader, a request for the order execution is transmitted via the bridge to the trading 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 (not 200 lots), which is the volume that is currently available on the market. Obviously, you are likely to encounter partial execution only when dealing with 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 the better price.
Once the price reaches the stop order level, a request for an order execution would be transmitted via the bridge to the trading system, where the order will be executed at the best market price from the liquidity providers at the moment the order reaches the system (if the execution price differs from the requested price for the Stop order by the number of pips that does not exceed the assigned value for the Limit order when placing the order). In case the order execution price differs from the requested price for the Stop order by the number of pips that exceeds the assigned value, the Stop Limit order would be automatically canceled. Thus, in case of stop orders, as well as in case of execution of market orders, slippage between the stop price and price of execution may occur. Moreover, slippage can also be in your favor.
If at any time «Equity» (current balance including open positions) becomes equal or less than 20 % of the margin held for the open positions, the dealer has right on his own discretion to close any of the open positions in order to maintain margin requirements.
During the weekends and public holidays the margin requirements may increase from about 1 % to 3 % (i.e. the greatest possible leverage for this period would be 1:33). 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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