Account and Trading FAQ
- Do you provide segregated accounts?
- Yes. Customers funds are kept in segregated accounts.
- Why Forex Metal uses 5-digit quotes for most currency pairs?
- We use 5-digit quotes because we add a so called fractional pip at the end. Instead of quoting prices with four digits, i.e. EURUSD at 1.3401 / 1.3402, we now quote the pair as 1.34014 / 1.34032. The last digit is the fractional pip, it is often displayed smaller then other digits to indicate that it is in fact not a full pip. The pip value for a EURUSD 100,000 position is $10 and the value of a fractional pip for this same position is $1. A fractional pip is a tenth of a pip and the addition of this feature to your account allows you to take advantage of smaller price increments and moves in the market.
- What leverage do you offer?
- Leverage depends on the amount of funds you operate with. Most accounts would have leverage of 1 : 500 (this means that for every dollar in the account he can open a position for $500), higher leverage is also possible, refer to the table located inside of your trading room at our main page. You can change the leverage yourself to suit your needs, however please remember that high leverage carries a higher degree of loss.
- What products can be traded on your trading platform?
- Foreign exchange as well as share, stock indices CFDs.
- What are the commissions and fees charged by forex-metal.com?
- We do not charge commission. All trading with forex-metal.com is commission free. There can be a small cost to roll over the open position overnight. You can read about it in the Forex FAQ section.
- What are the trading hours for each product?
- Most of the products are traded 24 hours a day 5 days a week. For full details, please see our Contract Parameters page.
- Can I open a free demo account?
- Yes. Please click here to download the trading terminal and open a demo account. Demo accounts are automatically deleted after 60 days. If you want to extend the validity of your demo account beyond 60 days period, please contact us.
- How do I open a Real Trading account?
- You can open it here. Just follow the instructions and fill out a simple account opening form.
- What is your stop-out limit and how does the stop out process work? If my account reaches the stop-out limit does it mean that some or all my open positions will be closed by your system simultaneously?
- Our stop-out level is currently 10%. This means that when your account reaches the stage that it has less than 10% of the required margin, the system will start closing the open position in your account. The process works as follows: in the event of the stop-out the system chooses the biggest loosing position in your account and closes it first at the current market price. If after then the margin level becomes greater than 10%, other positions are left intact. If the market continues to work against you, then the system will continue closing your open positions on the same basis – biggest loosing positions first. All positions are not closed simultaneously. Sometimes, closing only one position may be enough for the account to continue supporting the rest of the open positions. In other times, all positions may be closed automatically within a number of seconds. Of course it is important not to reach the point of the stop out. To avoid stop outs you should use lower leverage level and always maintain sufficient funds in the account.
- Are you an STP broker?
- Yes. We are an STP/ECN broker with direct market access quotes and without dealing desk.
- I noticed that during certain hours of the day, usually at night, you have different spreads on certain pairs. What is the reason for that?
- It is a normal practice for a broker to have wider spreads on some pairs during quite market. Usually it applies to exotic pairs. For more information on the spreads applicable to a particular pair please contact our support specialist at email@example.com.
- How do I withdraw funds from my account?
- You need to send us a withdrawal request by fax or via the website. Withdrawals are usually processed within 2 business days. If you have any open positions in your account, you need to close them before submitting the withdrawal request.
- When I have open positions, do you use unrealized profit for calculating the margin?
- Unrealized profit is not used for margin calculations.
- I used different payment options (wire transfer, Webmoney, etc) to deposit funds to my account. How, to which payment system can I make a withdrawal?
- Our standard policy permits withdrawals only to the same system which was used to make the deposit. However, in cases when a few different options have been used use apply percentage allocation principle. For example, if you have deposited $1000 using wire transfer and then $300 using another system, i.e. MB or other, you would be permitted to withdraw 30% of funds to MB and 70% to your bank.
- I made a deposit using credit card. Can I withdraw funds to my bank account?
- Yes, but only after 30 days from the time you made the deposit with your credit card.
- How do I deposit funds into my account?
- Our preferred account funding option is via bank wire transfer, however there are other options available, including funding by Webmoney and some other e-currencies. Please visit our Deposit Funds page for the full list of available payment options.
- Can I fund my trading account with credit card?
- Yes. Just choose Credit Cards option on the Deposit Funds page. The following cards are accepted: Visa, MasterCard, American Express, Diners, Visa Delta/debit(UK), Visa Electron, Maestro (UK, Spain&Austria), Solo (UK), JCB, Laser(Rep. of Ireland), Carte Bleue, Chinese Debit Cards
- Can I fund my account with debit card?
- Yes, you can. Most debit cards are connected through the bank to one of the major networks such as Visa, Mastercard or Amex and can be used on the internet to make payments. Simply use the "credit card" option at our Deposit Funds page to fund your account with the debit card.
- What is ClickandBuy and how do I add money to my account using this option?
- ClickandBuy is an online wallet that allows you to make instant purchases on the Internet at no risk and pay conveniently with your favorite local payment method. Choose from a wide range of payment methods including: credit/debit card, direct debit, online bank transfer and cash funding. If you do not have a ClickandBuy account you can register a one as part of your Forex-Metal.com purchase. CLICK HERE for details.
- What if I have more questions?
- You are welcome to contact our customer service using the phone numbers listed on the contact page.
- How can I get training or background information on the Forex markets?
- Please visit our What is Forex page.
- What are the account opening minimums?
- There are no limits. Forex pairs are generally traded on the basis of 1:100 leverage. It means for example, that to buy $100,000 contract you need to have at least $1000 in your account. Most share CFD contracts require 5-10% margin.
- I have downloaded the terminal. Where is my password for the demo account?
- When you install and start the platform on your computer, the login details will be created automatically. The internal e-mail with the same details can be found in your terminal, mail section. By default the terminal is set to login into your account every time you open it on your computer.
- How can I put money into my account?
- You can use any option available at the Deposit Funds. At the moment we accept wire transfers, Webmoney and some other e-currencies. More options will be added soon.
- How can I withdraw money from my account?
- You need to complete the withdrawal form available on our site and send it to us by fax or e-mail.
- I would like my friend to send money to fund my trading account.
- Sorry, we would not be able to accept such payment. We have a policy of not accepting third party payments. This means that only customer himself can fund his account. If you have a joint account with someone else’s (meaning you both operate the bank account), then you can send funds from the joint account. If you are a corporate customer, you can of course send funds from the corporate account.
- Are you affiliated with any particular bank or large financial institution?
- No. We are an independent brokerage firm providing clearing services for people to trade in foreign currencies and CFDs.
- What leverage do you offer?
Leverage depends on the amount of funds you operate with. Most accounts would have leverage of 1 : 500 (this means that for every dollar in the account he can open a position for $500), the detailed information is as follows:
If account has normally $1-$500 balance, the leverage would be 1:500;
For accounts with average balance $501 - $1000 the leverage is 1:200;
For accounts $1001 - $5,000, the leverage is 1:100;
Above $5,000, the leverage is 1:50;
- Do you have mini-forex?
- Yes, you can start trading with as little as $50 and open position equal to 0.01 of standard lot.
- My trading account is in USD. If I transfer funds in other currency (EUR, AUD, GBP, etc) into my account, what exchange rate do you use to convert funds into USD?
- We use the last quote for the relevant pair for the last trading day prior to crediting your account. If you send us the payment on the weekend or on Monday, the Friday close quote will be used.
- After closing my positions I ended up with a negative balance on my account. Am I liable for this negative balance? Does it mean that I have to pay it back to you?
- It is our company policy not to pursue customers for negative account balances. We believe that everyone should be given a fair go and if you decide to make another deposit into the account to continue trading, we will clear the negative balance on your account and bring the account back to 0, so that the new deposit could be credited to it.
- Do you permit use of Expert Advisors (EAs)?
- Yes, we allow the use of any Expert Advisors which customers may use to help them in trading. Customers use any such programs at their own risk. We would like to point that if any of the EA programs used by the customer will be abusing our prices datafeeds or interfering with our system in any way, we will suspend or close the trading terminal where such program is used.
- Are there any forex pairs for which you do not provide no-swap accounts?
- Yes. We are unable for offer no swap accounts for the currencies SEK,DKK,NOK,CZK,HUF,PLN,CZK,MXN,HKD,ZAR,TRY. This however does not affect islamic type of accounts. It is possible to have an islamic accounts (without swaps) for all pairs including the ones mentioned above.
- How to calculate the value of 1 point (pip) for one lot of a currency pair?
- Let’s use the pair EURCHF as an example. If the current ask price is 1.600 it means that to buy one lot worth of EUR (EUR 100,000) you need CHF 160,000. With the price moving one point to 1.6001 the value of the base currency remains the same – EUR 100,000, but to buy this amount you would need 160,010 of the quote currency, CHF. This means that the value of one pip is 160,010 – 160,000 = 10 CHF. For pairs with 3 digits after the dot the value of the pip is calculated in 3 digit numbers (i.e. 100s); for pairs that have 2 digits after the dot the pip value is calculated in 4 digit numbers (i.e. 1000s). For example, in all pairs with USD as a quote currency (EURUSD, GBPUSD...) the value of the pip is $10. In pairs where JPY is a quote currency (USDJPY, EURJPY) one pip is equal 1000 Yen, which is approximately $8-12 depending on the JPY rate. We have a free pip value calculator for iphone available at pipvaluecalculator.com.
- Does it cost anything to roll the FX position overnight?
- Yes. Usually the FX positions are opened with the leverage of 1:100. It means that by putting up only $1000 of your money as a margin you can buy 100 000 US dollars worth of currency. For example opening 1 lot USDAUD BUY you are receiving 100 thousand US dollars in exchange for 128 984 Australian dollars (at the time of writing). Technically you are in debt for AUD 128 984 because you are trading on 1:100 margin. As any loan, the leverage we provided you with must be serviced: trader must pay interest on it. But because FX are bought and sold in pair, the USD part of your position actually earns you money at the same time. So, if the position is kept open overnight by you, we use the LIBOR overnight rate for the loan and LIBID rate for the other part of the pair. The rates are minimal. For example LIBID USD rate is around 2% per annum. Usually the trader earns more on the deposit part of the position overnight then he spends on the loan part. The charges/credits that would fall on weekend are calculated at midnight on Thursday. Your account will show credits or charges made against your account for keeping an overnight position.
- I have recently became the IB and would like to refer customers to you. What is considered as "opened" trading account to qualify for commission under option 1?
- For the purposes of commission the account is considered to be opened when the customer submits the required documentation and we issue the account number and password. We also look if the account had any trades in the month preceding the date when commission payments are due to the IB. We will not pay commissions for "dummy", not working accounts and will not tolerate any abuse of the referral system.
- Do you have Islamic accounts?
- Yes, we do. Our Islamic accounts completely satisfy Islamic religious prohibitions of not receiving or paying interest. They do not have any swaps calculated for the open positions. There could be a small maintenance fee taken at the end of each trading day. The customer may also receive a small amount of money from us as a gift at the end of the trading session.
- What is a No Swap account?
- The No Swap account is an account where daily swaps are not calculated for the open positions. Our no swap accounts also do not have any fees or interests attached to them. Customers may use no swap accounts for certain trading strategies, however we will not tolerate any abuse of the system. For example, if the customer opens the positions on the no swap account for a few minutes before midnight and then closes immediately after midnight GMT, that would constitute an abuse and the "no swap" feature will be removed from the customers account.
- What is a CFD?
A contract for difference (CFD) is a contract between two parties to exchange the difference between the entry price and the exit price of a financial instrument or security. This transaction, also commonly referred to as a SWAP transaction, concludes with the parties settling the difference between the purchase price and the sale price.
- How is the contract value defined eg. share CFDs?
The contract value also known as face value of a CFD, is defined as the number of shares specified in the contract multiplied by the price of the underlying share.
- What is the minimum account opening size?
The required minimum is equivalent of US$500 for share CFDs, for Indices and for OIL contracts.
- Can I open a demo account first?
You can open a free demo account and will be given up to $50,000 demo credit to practice trading.
- On what stocks can I trade CFDs?
CFDs are available on major US, European and Asian shares.
- How do I execute a CFD?
Once you have opened and funded your CFD account you can download and trade via our state-of-the-art trading platform.
- Am I trading real market prices?
- Can I place orders in the system whilst the underlying market is closed?
Yes - You may also place orders into the system outside market hours and they will be executed as soon as the underlying market is open.
- How long can I hold the CFD position?
CFDs do not have an expiry date. As long as your account can support any variation in margin and interest amounts incurred, you can hold your CFD position indefinitely.
- Do I have voting rights on the underlying stock?
CFDs do not entitle you to any rights in connection with the underlying shares.
- How do I view my account?
Statements and contract notes are available via e-mail. Customers can access their account via a web-browser. Accounts are valued marked to market overnight.
- What is margin and how is it calculated?
Initial margin is the minimum deposit required by Man to be in your account before an order placed to take a position. This is a percentage of the value of the CFD at the time of buying or selling. Typically 10%.
Variation margin is the difference between the value of the CFD at the time of buying or selling and its value marked to market at the end of a trading day. In the advent of an adverse price movement any margin call can be communicated to customers via an e-mail, sms message or phone call for the required deposit of funds into your Forex-Metal account to meet your margin requirement.
- I had a long position opened on Oil since the beginning of August. I see that in the middle of the month you have calculated the swaps and my account shows -$100. Why is that?
It is important to understand that our Oil instrument is our own product which equals a standard ICE Brent future contract. However, our product is not a futures type contract. It is a purely speculative instrument we have created to allow our customers to take advantage of the daily oil price changes. To create the prices for our product we use the prices of ICE Brent future contract as a basis. Futures contracts have expiry date every month, on which they are settled. Our product does not have an expiry date. We simply rollover our customers’ positions on the day before the settlement of the underlying futures contract. The expiry date of the August futures was 16th of August. From 17th of August we started to use the prices datafeed of the September futures. Theoretically, if you were trading futures, you would need to close your position on the 16th and open a new one. The prices between the expired month and the new month are usually different, which creates either a profit or loss position. Unlike the futures contract, we allow our customers to open or close positions on Oil, irrespective when the underlying futures contract expires. You are simply speculating on the daily changes of the oil price. Only if you hold your position on Oil open during the rollover time, we will have to calculate the difference between the price of the expired month’s contract (i.e. August) and the new month (i.e. September) and adjust your position accordingly. There are no swaps calculated on a daily basis. In this example, the difference between the August and September prices at settlement was $1. You had a position opened for 100 barrels, which gained your $100 automatically. However, you did not actually hold the futures contract, so we had to make a cash adjustment, so there is no profit or loss made during the rollover period. Similarly, if you would lose $100 because of the two months’ prices difference at the time of the settlement, we would credit your account with that amount. What to do if you don’t want to keep your position open at the time of the rollover? You can open or close positions at any time during our trading hours. Certainly, you can close your opened positions before the rollover. The information of the ICE contracts’ expiry dates could be found here.
- What are the acceptable forms of payment?
Cleared funds must be in your account prior to trading. Funds may take up to two days to clear. Preferable forms of payment include direct deposit into our bank account or swift transfer. For the full list of all funding options please visit Deposit Funds page in your account menu.
- How & where do you hold my funds?
Your funds are held in a segregated account with an AAA-rated bank and are protected by the general client money rules.
- Do you provide financial advice?
Generally speaking we do not provide advice, but act as a market maker providing quotes for you. Any information, analysis or opinion given on our site does not take into account your particular circumstances, financial situation or needs. Therefore you should rely on your judgment when placing orders and seek independent financial advice if necessary.
- Do I pay tax on CFD trading?
We think that the tax treatment of the CFD instrument should be the same as a derivative, for example, futures contract. However, you must seek your own advice regarding the taxation issues.
World Currency Codes
- View world currency codes
AFGHANISTAN Afghani AFA 004 2 ALBANIA Lek ALL 008 2 ALGERIA Algerian Dinar DZD 012 2 AMERICAN SAMOA US Dollar USD 840 2 ANDORRA Spanish Peseta ESP 724 0 French Franc FRF 250 2 Andorran Peseta ADP 020 0 ANGOLA New Kwanza AON 024 2 Kwanza Reajustado AOR 982 2 ANGUILLA East Caribbean Dollar XCD 951 2 ANTARCTICA No universal currency ANTIGUA AND BARBUDA East Caribbean Dollar XCD 951 2 ARGENTINA Argentine Peso ARS 032 2 ARMENIA Armenian Dram AMD 051 2 ARUBA Aruban Guilder AWG 533 2 AUSTRALIA Australian Dollar AUD 036 2 AUSTRIA Schilling ATS 040 2 AZERBAIJAN Azerbaijanian Manat AZM 031 2 BAHAMAS Bahamian Dollar BSD 044 2 BAHRAIN Bahraini Dinar BHD 048 3 BANGLADESH Taka BDT 050 2 BARBADOS Barbados Dollar BBD 052 2 BELARUS Belarussian Ruble BYR 974 0 BELGIUM Belgian Franc BEF 056 0 BELIZE Belize Dollar BZD 084 2 BENIN CFA Franc BCEAO 1 XOF 952 0 BERMUDA Bermudian Dollar
(customarily known as Bermuda Dollar)
BMD 060 2 BHUTAN Indian Rupee INR 356 2 Ngultrum BTN 064 2 BOLIVIA Boliviano BOB 068 2 Mvdol 2 BOV >984 2 BOSNIA AND HERZEGOVINA Convertible Marks BAM 977 2 BOTSWANA Pula BWP 072 2 BOUVET ISLAND Norwegian Krone NOK 578 2 BRAZIL Brazilian Real BRL 986 2 BRITISH INDIAN OCEAN TERRITORY US Dollar USD 840 2 BRUNEI DARUSSALAM Brunei Dollar BND 096 2 BULGARIA Lev BGL 100 2 Bulgarian LEV BGN 975 2 BURKINA FASO CFA Franc BCEAO 1 XOF 952 0 BURUNDI Burundi Franc BIF 108 0 CAMBODIA Riel KHR 116 2 CAMEROON CFA Franc BEAC 3 XAF 950 0 CANADA Canadian Dollar CAD 124 2 CAPE VERDE Cape Verde Escudo CVE 132 2 CAYMAN ISLANDS Cayman Islands Dollar KYD 136 2 CENTRAL AFRICAN REPUBLIC CFA Franc BEAC 3 XAF 950 0 CHAD CFA Franc BEAC 3 XAF 950 0 CHILE Chilean Peso CLP 152 0 Unidades de fomento 2 CLF 990 0 CHINA Yuan Renminbi CNY 156 2 CHRISTMAS ISLAND Australian Dollar AUD 036 2 COCOS (KEELING) ISLANDS Australian Dollar AUD 036 2 COLOMBIA Colombian Peso COP 170 2 COMOROS Comoro Franc KMF 174 0 CONGO CFA Franc BEAC 3 XAF 950 0 CONGO, THE DEMOCRATIC REPUBLIC OF Franc Congolais CDF 976 2 COOK ISLANDS New Zealand Dollar NZD 554 2 COSTA RICA Costa Rican Colon CRC 188 2 COTE D'IVOIRE CFA Franc BCEAO 1 XOF 952 0 CROATIA Kuna HRK 191 2 CUBA Cuban Peso CUP 192 2 CYPRUS Cyprus Pound CYP 196 2 CZECH REPUBLIC Czech Koruna CZK 203 2 DENMARK Danish Krone DKK 208 2 DJIBOUTI Djibouti Franc DJF 262 0 DOMINICA East Caribbean Dollar XCD 951 2 DOMINICAN REPUBLIC Dominican Peso DOP 214 2 EAST TIMOR Timor Escudo TPE 626 0 Rupiah IDR 360 2 ECUADOR Sucre ECS 218 2 Unidad de Valor Constante (UVC) 2 ECV 983 2 EGYPT Egyptian Pound EGP 818 2 EL SALVADOR El Salvador Colon SVC 222 2 EQUATORIAL GUINEA CFA Franc BEAC 3 XAF 950 0 ESTONIA Kroon EEK 233 2 ERITREA Nakfa ERN 232 2 ETHIOPIA Ethiopian Birr ETB 230 2 EUROPEAN MONETARY UNION (EMU) 4, 10 Euro EUR 978 2 FALKLAND ISLANDS (MALVINAS) Falkland Islands Pound FKP 238 2 FAROE ISLANDS Danish Krone DKK 208 2 FIJI Fiji Dollar FJD 242 2 FINLAND Markka FIM 246 2 FRANCE French Franc FRF 250 2 FRENCH GUIANA French Franc FRF 250 2 FRENCH POLYNESIA CFP Franc XPF 953 0 FRENCH SOUTHERN TERRITORIES French Franc FRF 250 2 GABON CFA Franc BEAC 3 XAF 950 0 GAMBIA Dalasi GMD 270 2 GEORGIA Lari GEL 981 2 GERMANY Deutsche Mark DEM 280 2 GHANA Cedi GHC 288 2 GIBRALTAR Gibraltar Pound GIP 292 2 GREECE Drachma GRD 300 0 GREENLAND Danish Krone DKK 208 2 GRENADA East Caribbean Dollar XCD 951 2 GUADELOUPE French Franc FRF 250 2 GUAM US Dollar USD 840 2 GUATEMALA Quetzal GTQ 320 2 GUINEA Guinea Franc GNF 324 0 GUINEA-BISSAU Guinea-Bissau Peso GWP 624 2 CFA Franc BCEAO 1 XOF 952 0 GUYANA Guyana Dollar GYD 328 2 HAITI Gourde HTG 332 2 US Dollar USD 840 2 HEARD ISLAND AND MCDONALD ISLANDS Australian Dollar AUD 036 2 HOLY SEE (VATICAN CITY STATE) Italian Lira ITL 380 0 HONDURAS Lempira HNL 340 2 HONG KONG Hong Kong Dollar HKD 344 2 HUNGARY Forint HUF 348 2 ICELAND Iceland Krona ISK 352 2 INDIA Indian Rupee INR 356 2 INDONESIA Rupiah IDR 360 2 INTERNATIONAL MONETARY FUND (IMF) 4 SDR XDR 960 N.A. IRAN, ISLAMIC REPUBLIC OF Iranian Rial IRR 364 2 IRAQ Iraqi Dinar IQD 368 3 7 IRELAND Irish Pound IEP 372 2 ISRAEL New Israeli Sheqel 5 ILS 376 2 ITALY Italian Lira ITL 380 0 JAMAICA Jamaican Dollar JMD 388 2 JAPAN Yen JPY 392 0 JORDAN Jordanian Dinar JOD 400 3 KAZAKSTAN Tenge KZT 398 2 KENYA Kenyan Shilling KES 404 2 KIRIBATI Australian Dollar AUD 036 2 KOREA, DEMOCRATIC PEOPLE'S REPUBLIC OF North Korean Won KPW 408 2 KOREA, REPUBLIC OF Won KRW 410 0 KUWAIT Kuwaiti Dinar KWD 414 3 KYRGYZSTAN Som KGS 417 2 LAO PEOPLE'S DEMOCRATIC REPUBLIC Kip LAK 418 2 LATVIA Latvian Lats LVL 428 2 LEBANON Lebanese Pound LBP 422 2 LESOTHO Rand ZAR 710 2 (financial Rand) 2 ZAL 991 2 Loti LSL 426 2 LIBERIA Liberian Dollar LRD 430 2 LIBYAN ARAB JAMAHIRIYA Libyan Dinar LYD 434 3 LIECHTENSTEIN Swiss Franc CHF 756 2 LITHUANIA Lithuanian Litas LTL 440 2 LUXEMBOURG Luxembourg Franc LUF 442 0 MACAU Pataca MOP 446 2 MACEDONIA, THE FORMER YUGOSLAV REPUBLIC OF Denar MKD 807 2 MADAGASCAR Malagasy Franc MGF 450 0 MALAWI Kwacha MWK 454 2 MALAYSIA Malaysian Ringgit MYR 458 2 MALDIVES Rufiyaa MVR 462 2 MALI CFA Franc BCEAO 1 XOF 952 0 MALTA Maltese Lira MTL 470 2 MARSHALL ISLANDS US Dollar USD 840 2 MARTINIQUE French Franc FRF 250 2 MAURITANIA Ouguiya MRO 478 2 MAURITIUS Mauritius Rupee MUR 480 2 MEXICO Mexican Peso MXN 484 2 Mexican Unidad de Inversion (UDI) 2 MXV 979 2 MICRONESIA, FEDERATED STATES OF US Dollar USD 840 2 MOLDOVA, REPUBLIC OF Moldovan Leu MDL 498 2 MONACO French Franc FRF 250 2 MONGOLIA Tugrik MNT 496 2 MONTSERRAT East Caribbean Dollar XCD 951 2 MOROCCO Moroccan Dirham MAD 504 2 MOZAMBIQUE Metical MZM 508 2 MYANMAR Kyat MMK 104 2 NAMIBIA Rand ZAR 710 2 Namibia Dollar 6 NAD 516 2 NAURU Australian Dollar AUD 036 2 NEPAL Nepalese Rupee NPR 524 2 NETHERLANDS Netherlands Guilder NLG 528 2 NETHERLANDS ANTILLES Netherlands Antillian Guilder ANG 532 2 NEW CALEDONIA CFP Franc XPF 953 0 NEW ZEALAND New Zealand Dollar NZD 554 2 NICARAGUA Cordoba Oro NIO 558 2 NIGER CFA Franc BCEAO 1 XOF 952 0 NIGERIA Naira NGN 566 2 NIUE New Zealand Dollar NZD 554 2 NORFOLK ISLAND Australian Dollar AUD 036 2 NORTHERN MARIANA ISLANDS US Dollar USD 840 2 NORWAY Norwegian Krone NOK 578 2 OMAN Rial Omani OMR 512 3 PAKISTAN Pakistan Rupee PKR 586 2 PALAU US Dollar USD 840 2 PANAMA Balboa PAB 590 2 US Dollar USD 840 2 PAPUA NEW GUINEA Kina PGK 598 2 PARAGUAY Guarani PYG 600 0 PERU Nuevo Sol PEN 604 2 PHILIPPINES Philippine Peso PHP 608 2 PITCAIRN New Zealand Dollar NZD 554 2 POLAND Zloty PLN 985 2 PORTUGAL Portuguese Escudo PTE 620 0 PUERTO RICO US Dollar USD 840 2 QATAR Qatari Rial QAR 634 2 REUNION French Franc FRF 250 2 ROMANIA Leu ROL 642 2 RUSSIAN FEDERATION Russian Ruble RUR 810 2 Russian Ruble RUB 643 2 RWANDA Rwanda Franc RWF 646 0 SAINT HELENA St Helena Pound SHP 654 2 SAINT KITTS AND NEVIS East Caribbean Dollar XCD 951 2 SAINT LUCIA East Caribbean Dollar XCD 951 2 SAINT PIERRE AND MIQUELON French Franc FRF 250 2 SAINT VINCENT AND THE GRENADINES East Caribbean Dollar XCD 951 2 SAMOA Tala WST 882 2 SAN MARINO Italian Lira ITL 380 0 SAO TOME AND PRINCIPE Dobra STD 678 2 SAUDI ARABIA Saudi Riyal SAR 682 2 SENEGAL CFA Franc BCEAO 1 XOF 952 0 SEYCHELLES Seychelles Rupee SCR 690 2 SIERRA LEONE Leone SLL 694 2 SINGAPORE Singapore Dollar SGD 702 2 SLOVAKIA Slovak Koruna SKK 703 2 SLOVENIA Tolar SIT 705 2 SOLOMON ISLANDS Solomon Islands Dollar SBD 090 2 SOMALIA Somali Shilling SOS 706 2 SOUTH AFRICA Rand ZAR 710 2 SPAIN Spanish Peseta ESP 724 0 SRI LANKA Sri Lanka Rupee LKR 144 2 SUDAN Sudanese Dinar SDD 736 2 SURINAME Surinam Guilder SRG 740 2 SVALBARD AND JAN MAYEN Norwegian Krone NOK 578 2 SWAZILAND Lilangeni SZL 748 2 SWEDEN Swedish Krona SEK 752 2 SWITZERLAND Swiss Franc CHF 756 2 SYRIAN ARAB REPUBLIC Syrian Pound SYP 760 2 TAIWAN, PROVINCE OF CHINA New Taiwan Dollar TWD 901 2 TAJIKISTAN Tajik Ruble TJR 762 0 TANZANIA, UNITED REPUBLIC OF Tanzanian Shilling TZS 834 2 THAILAND Baht THB 764 2 TOGO CFA Franc BCEAO 1 XOF 952 0 TOKELAU New Zealand Dollar NZD 554 2 TONGA Pa'anga TOP 776 2 TRINIDAD AND TOBAGO Trinidad and Tobago Dollar TTD 780 2 TUNISIA Tunisian Dinar TND 788 3 TURKEY Turkish Lira TRY 792 2 TURKMENISTAN Manat TMM 795 2 TURKS AND CAICOS ISLANDS US Dollar USD 840 2 TUVALU Australian Dollar AUD 036 2 UGANDA Uganda Shilling 8 UGX 800 0 UKRAINE Hryvnia UAH 980 2 UNITED ARAB EMIRATES UAE Dirham AED 784 2 UNITED KINGDOM Pound Sterling GBP 826 2 UNITED STATES US Dollar USD 840 2 (Same day) 2 USS 998 2 (Next day) 2 USN 997 2 UNITED STATES MINOR OUTLAYING ISLANDS US Dollar USD 840 2 URUGUAY Peso Uruguayo UYU 858 2 UZBEKISTAN Uzbekistan Sum UZS 860 2 VANUATU Vatu VUV 548 0 VENEZUELA Bolivar VEB 862 2 VIET NAM Dong VND 704 2 VIRGIN ISLANDS (BRITISH) US Dollar USD 840 2 VIRGIN ISLANDS (U.S.) US Dollar USD 840 2 WALLIS AND FUTUNA CFP Franc XPF 953 0 WESTERN SAHARA Moroccan Dirham MAD 504 2 YEMEN Yemeni Rial YER 886 2 YUGOSLAVIA New Dinar YUM 891 2 ZAIRE New Zaire ZRN 180 2 ZAMBIA Kwacha ZMK 894 2 ZIMBABWE Zimbabwe Dollar ZWD 716 2 Entity not applicable Gold XAU 959 N.A. Bond Markets Units European Composite Unit (EURCO) XBA 955 N.A. European Monetary Unit (E.M.U.-6) 9 XBB 956 N.A. European Unit of Account 9 (E.U.A.- 9) XBC 957 N.A. European Unit of Account 17 (E.U.A.- 17) XBD 958 N.A. Palladium XPD 964 N.A. Platinum XPT 962 N.A. Silver XAG 961 N.A.
- What is Forex-Metal affiliate program about?
- As Forex-Metal affiliate, you place your referral link and/on banners on your website, blog, social media profile (e.g. Facebook, Twitter), inside your mobile app, or as a forum or email signature. We use tracking software to track every account opened by the people you refer. For every new client you refer you will receive generous commissions. There are a few commission options that we offer. It could be a fixed commission per account or ongoing commissions from customers trading with us. Such commission can generate you thousands of dollars a month in revenue.
- How do I join Forex-Metal affiliate program?
- It is fast and easy. All you need to do is to fill out the form here: https://forex-metal.com/affiliate_settings/signup Once you submit the sign up form, you will receive your affiliate account number and the link/banners you can use to refer customers.
- Why should I choose Forex-Metal affiliate program?
Forex-Metal affiliate program is definitely the best forex affiliate program to choose from because it has:
- many commission options to choose from (from $100 for every account opened by a referred person, 10% for each deposit made by a referred person, and/or from 1 pip per lot for each lot traded by referred customer plus a revenue share);
- increased commissions for VIP affiliates;
- second tier commission on each of the commission options;
- ability to promote each option individually or at the same time;
- affiliate links, optimized for mobile devices;
- personal affiliate manager, assigned to each affiliate.
- Does it cost me anything to become Forex-Metal affiliate?
- No, it is absolutely free! You do not have to pay anything to apply, there are no obligations, and you can cancel your affiliate membership at any time.
- Who can become an affiliate?
- Anyone can become Forex-Metal affiliate as long as they (1) are at least 18 years of age, (2) provide Forex-Metal with valid contact and personal information, (3) use ethical marketing methods, and (4) do not market our company on websites, ptromoting sex, violence, illegal activities, etc. It is the responsibility of an affiliate to comply with their local relevant regulations.
- Do I need to have a trading account with Forex-Metal to become an affiliate?
- Yes, you will create a trading account as part of the affiliate/IB registration. You do not have to trade. The account is needed to accumulate your commission payments in it.
- How do I earn money?
- Once you submit the sign up form, you will receive your affiliate account number and get access to your affiliate profile where you can find referral link(s) and banners. You can place your referral link and/on banners on your website, blog, social media profile (e.g. Facebook, Twitter), inside your mobile app, or as a forum or email signature. We use tracking software to track every account opened by the people you refer. For every new client you refer you will receive generous commissions.
- I do not have a website or blog. Can I still become your affiliate?
- Yes, absolutely. Even if you do not have your own website, that is fine because we have free pre-designed website templates that allow Introducing Brokers to create their own forex websites in a matter of minutes. The process of creating a fully-functional website is very easy: one needs to download one of the template packages and follow simple instructions in the documentation file provided. All one needs is a domain to host the website on. You can also put your affiliate link on your social media page or as an email signature.
- How much do you pay in commissions?
- There are 3 main commission options:
- $100 for every new trading account opened through your referral;
- 10% from each deposit made by people you refer;
- 1 pip from each lot traded by people you refer plus a revenue share.
For experienced IBs (those who have referred more than 10 working clients) we offer even more: 2 pips per lot commission from trading. In case you are signed under the 1st commission option (commission for every new account opened by the people you refer), when you are upgraded to VIP status (when you bring 10 working clients), you will receive $200 CPA commission for each new account. You can promote all 3 referral links simultaneously and every time someone opens an account with us via your link, you will get a commission.
We reward active partners and can always tailor our commission structure to your specific needs.
- I have recently become an IB and would like to refer customers to you. What is considered as "opened" trading account to qualify for commission under option 1?
- For the purposes of commission, the account is considered to be opened when the customer submits the required documentation and we issue the account number and password. We will not pay commissions for "dummy", not working accounts and will not tolerate any abuse of the referral system. The affiliate will receive a $100 CPA (commission per action) for every new account opened via his referral link, providing the referred customer deposits at least $75 into the account as a first deposit and makes at least 10 full lots worth of trades.
- I have referred a friend to open a $100 no-deposit bonus account. Will I receive commissions for that?
- No. $100 is free bonus that we give to the customer. You will only be entitled for affiliate commission for new accounts if the customer deposits his own money and starts trading.
- How much can I expect to earn?
- No limits! It all depends on how many clients you refer to use our services. We have many successful referring partners being paid well over $10,000 in commissions a month.
- How often are commissions paid?
- Commissions for the previous month are paid at the beginning of the next month.
- How do I get paid?
- You can withdraw commissions, using any of the available withdrawal methods.
- What is the minimum payout amount?
- There is no minimum payout requirement.
- Can you explain the tiered commission structure?
- We offer a second tier commissions on each of the commission options. The 2nd tier commission is 10% of the first tier one. This means that if you refer someone who himself becomes an affiliate and starts referring customers to us, you will receive 10% of the commissions earned by this affiliate. For example: the affiliate referred by you introduced a few customers to us using all 3 commission options and this month made a total of $1000 in commissions. You, as a second tier, will receive $100, being 10% of the 1st tier payout.
- How long do I need to wait to become approved?
- You will receive your affiliate account details within minutes after submitting the online form.
- I have signed up, now what?
- After you receive your affiliate account details, you can log into your affiliate profile and find all the marketing materials you need as well as detailed information about affiliate options, your referrals, and useful tips. You can always contact our affiliate managers at firstname.lastname@example.org, email@example.com, and firstname.lastname@example.org
- Where do I get the links and banners?
- All affiliate tools are available inside the Get Banners section of your affiliate account.
- Do you support mobile integration?
- Yes, we are very proud to offer better solutions to those affiliates who have websites, adapted for mobile access by offering affiliate links, optimized for mobile devices. This is also a great opportunity for mobile application developers to monetize their traffic by adding a second stream of income.
- What types of banners are available?
- The banners are available in English, German, French, Russian, Chinese, Indonesian, Spanish, Arabic, Japanese, Portuguese, and Albanian languages. Other language banners are available upon request. Marketing materials highlight 40% deposit bonus, Fx Edge ECN accounts, free trading signals, $100 no-deposit bonus as well as increased CPA deal for affiliates.
- How do I know how much commission I've earned?
- You can track your commission and referrals through your account, in "My Referrals" section.
- How do you track my referrals?
- The system is tracking the people you refer. Every time someone opens a trading account with us via your affiliate link, the record of it will appear in your affiliate account history. You will be able to view all the clients you referred in Cabinet section on our website.
- What information will I receive on my referrals?
- You will see the name of the person you referred; his/her account number, the date the account was opened, and the status of his/her account.
- How do I get promoted to a higher partner level?
- After you refer 10 working clients, you will be automatically upgraded to a higher partner level and will start receiving higher commissions for the new clients you refer.
- Can I earn commissions on my own trades?
- No, you cannot earn commissions on your own trades, but you can participate in Forex-Metal rebate program that allows traders to receive a 0.5 pip rebate on their trades.
- Where can I view your full terms and conditions?
- You can find Affiliate Agreement here https://forex-metal.com/Affiliate_Agreement.pdf
- I forgot my affiliate account number and password. What do I do?
- You can request a new password here https://forex-metal.com/affiliate_settings/forgot_password
- Who do I contact if I have questions about your affiliate program?
- You can contact Maritza Garcia at email@example.com or Betty Snyder at firstname.lastname@example.org. Also, feel free to contact our online operators via live chat support, email email@example.com, firstname.lastname@example.org, or by Skype: Forex-Metal.
- What sort of assistance do you provide to your affiliates?
- We are willing to help you succeed. You will be assigned with a dedicated personal affiliate manager who will always be there to answer all your questions and concerns and to give you great tips on how to become a successful affiliate and get the most success out of our partnership.
FX Replitrader FAQ
- I have joined one of the signal providers a couple of days ago and I don`t receive any signals - no trades are being made on my account. What is the problem?
- Most likely you do not have enough funds in the account to open trades. The orders are being opened in proportion to the balance on the account. Most FX Replitraders recommend a certain amount of balance for their strategy to be effective. We recommend to deposit at least $500, this in most cases would be enough to open a few orders.
- I joined one of the FX Replitraders and now I want to change and join another one, how do I do that?
- You can cancel your subscription to the signals from a particular provider at any time by "unticking" him in your Trader`s account profile on our site.
- What are Forex Rewards?
- Forex Rewards are the reward points we give to traders to reward their loyalty. Once a sufficient amount of the points is accumulated, it can be changed into cash and added into a trading account or converted into one of the prizes available. It means that active traders can receive cash or physical items, such as gift cards or gadgets for free.
- How can I open a Forex Rewards account?
- Just like a normal account. From 1st September 2013 every new account is automatically enrolled into rewards program. The only exceptions are trading rebates and "no deposit" bonuses. If you want to receive rebates for your trading you should open a separate account for Forex Rewards. If you are using a free "no deposit" bonus on your account, you will start receiving rewards points for your trading only after you complete the bonus conditions and deposit funds into the account.
- I am an existing customer. How can I participate in the Forex Rewards program?
- It's simple. Contact our support, tell them you want to participate and either make a new deposit of at least $100 or take a deposit bonus, to be able to start accumulating the rewards points. If your account is already receiving trading rebates or 0.5 pip or more, then you would need to open a new trading account for Forex Rebates.
- If I refer another person to open an account, would I still get a commission for that or only the reward points?
- Yes, you will continue getting a referral commission as you normally would. The reward points are not a substitute for regular commission. You are receiving it in addition to the commission payments.
- Where can I see my rewards balance?
- Inside your trader's room profile on our site.
- Where can I find the explanation of how the points are counted and the list of available rewards (prizes)?
- Also inside your account profile on our site, Forex Rewards section.
- My rewards points balance shows that I already have some points collected. Can I convert the points into cash to add to my trading account and can the cash be withdrawn?
- The minimum amount you can redeem is $50. If your points balance shows a number of points equivalent in value to this amount, you can choose the options from the list of prizes that lets you to convert points to cash and click Redeem. Once the request is processed, the amount of money will be added to your trading account. You can do with it what you wish, including using one of the available withdrawal options. Note, you can also redeem your rewards points balance to receive a free gift from us, for example a gift card or a debit card.
- How to get my first free gift card quicker?
- A new account with a deposit of $10,000 or more will automatically get a $50 gift card.
- I saw a banner advertising $1000 gift card. What does it mean? How can I get the $1000 gift card?
- Any deposit of $100,000 will automatically qualify for a complimentary gift card or that value.
Risk Free promotion FAQ
- Example 1
- Customer deposits $250 and opens 10 trades. After closing 7 of them, total loss is $200. Total loss from the first 5 trades is $150. $150 is refunded to the customer.
- Example 2
- Customer deposits $150 and opens 7 trades. After closing 3 of them, the loss is $100. Customer asks for a refund and receives the refund of $100. The customer then opens 3 more trades and 2 from them were again closed at a loss. We are unable to refund this loss, because we can offer a refund only once.
- Example 3
- Customer deposits $250. After the first 5 trades the total loss is $270. The account is in negative: - $20. We refund $250 as we can only refund the amount of the deposit. The negative balance is written off and the account is back to 0. Customer can make a new deposit and receive an up to 51% bonus on it.
Glossary of Terms
- Basically this is the art of buying something cheap in one place and selling it at a profit somewhere else. The rise of global electronic trading has made this process much faster and easier, enabling arbitrageurs - as they're called - to switch huge sums of money across continents in seconds in an attempt to exploit small differences in the quoted prices of investments in different markets - foreign currency, for example.
In share trading, so-called risk arbitrageurs attempt to make profits from the usual share price movements of companies that are in takeover situations. These investors will simultaneously buy stock in the target company, whose share price normally rises, while selling that of the bidder, whose share price normally falls. They will also invest in the target company if they think there's a chance the bidder will have to raise the offer price.
- Averaging the price you have paid for a currency pair is achieved by buying more on a fall or selling some on a rise in value.
- The lowest price at which someone will sell an investment at a given moment.
- Balance of Payments
- A measure of transactions resulting in payments from one country to all other countries during a specified period of time. If more money flows in than out, the balance of payments is positive. These transactions take place in either the Current Account, the Financial Account or the Capital Account. Balance of payments serves as another economic indicator of a country’s relative value, and includes the trade balance, foreign investments and investments by foreigners.
- Base Currency
- The foreign exchange deal currency against which another currency is measured. Currency pairs are usually identified by a six letter grouping. The first three letters identify the BASE currency.
- Basis Point (bp)
- A measure which is mainly used in the statement of interest rates. One hundredth of 1% – 25 basis points is equal to 0.25%.
- Bear, Bearish, Bear Market
- A bear is a person who believes that the prices in the market will decline. This person would be considered bearish. A bear market is a market that is declining (e.g., if the pound versus the US dollar rate is falling). If the decline were expected to continue, the market would be bearish.
- Bid Price
- The highest price a prospective buyer is willing to pay at a particular time for securities, futures contracts or foreign currencies.
- Bid/Offer Spread
- The standard differential between the price of buying and selling securities. It is usually quoted as a monetary amount for shares, a percentage term for unit trusts.
- Blue Chip
- The term used to define a company regarded as being a solid, and consequently safe, investment. The company will almost certainly be large, well established and profitable, but be conservatively managed.
- Bretton Woods
- The place in New Hampshire, where the post-war system of foreign exchange was agreed upon in 1944.
- Bull, Bullish, Bull Market
- A bull is a person who believes that prices in the market will rise. This person would be considered bullish. A bull market is a market that is rising (e.g., if the pound versus the US dollar rate moves higher). If the advance were expected to continue, the market would be bullish.
- Gold, silver, platinum, or palladium, in the form of bars or ingots.
- Foreign exchange jargon for the British pound versus the US dollar exchange rate. It alludes to the cable laid under the Atlantic, which linked the tickertape machines used by trading houses in New York and London during the 1970s and early 1980s.
- CAC 40
- An index of the largest 40 companies listed on the French CAC market. The CAC index is published by the Societe des Bourse Francaises.
- Cash Market
- The market for the purchase and sale of physical currencies. Settlement is two business days from transaction date.
- Central Bank
- The bank that provides financial and banking services to the government of a country and its commercial banking system and which implements the government’s monetary policy.
- Closed Position
- An equal and opposite transaction, i.e. buying 1000 BT shares then selling 1000 BT shares, the position will be automatically closed.
- Closing Price
- The closing price is the last price for a tradable instrument at the time the market closes.
- A physical substance, such as food, grains, and metals, which is interchangeable with another product of the same type, and which investors buy or sell, usually through futures contracts.
- Contingent Order
- An order which is to be executed only if another order is executed first. An example of a contingent order would be to sell one specific security if another specific security has been bought.
- Contracts for Difference (CFDs)
- CFD means Contract for Difference. They were developed to allow clients to receive all the benefits of owning a stock without having to physically own the stock. In other words you cannot take delivery of a CFD so you have to settle the difference between where you bought the contract and where you sold it. The difference is either profit or loss.
- Corporate Action
- Any event initiated by a corporation which impacts its shareholders. For some such events, shareholders may or must respond to the corporate action or select from a list of possible actions. Examples of corporate actions include dividend payments, mergers, rights issues and stock splits.(See: Dividend, Stock Split, Rights Issue and Consolidation)
- Cost of Carry
- How much it costs to finance a position.
- Cross Rate
- An exchange rate between two currencies, usually constructed from the individual exchange rates of the two currencies, measured against the US dollar, except for the British pound, where the US dollar is measured against sterling.
- Currency Hedging
- Trying to reduce or eliminate exchange rate risks by buying forward, using financial futures or borrowing in the exposed currency.
- Currency Swap
- Contract which commits two counter-parties to exchange streams of interest payments in different currencies for an agreed period of time and to exchange principal amounts in different currencies at a pre-agreed exchange rate at maturity.
- Currency Warrant
- OTC option; long-dated (more than one year) currency option.
- DAX 30 Index
- The index of the biggest 30 companies listed on the Frankfurt Stock Exchange in Germany. The DAX is a 'total return' index in that it measures the returns from dividends as well as share price performance.
- Day Order
- The order placed will be active, i.e. pending, until the end of the day, or until it has been executed.
- Day Trading
- Refers to opening and closing the same position, or positions, within a single day’s trading and before the value date changes.
- The formal reduction in the value of a currency against other currencies.
- That part of a company's profit after tax which is distributed to shareholders.
- Dow Jones Industrial Average
- 'The Dow' is the oldest stock market index in the US, measuring the performance of a representative selection of 30 blue-chip companies. The 30 companies are selected by Dow Jones & Co and the Wall Street Journal.
- ECB - European Central Bank
- which manages the euro currency and European interest rates/monetary policy.
- Exchange Rate
- The rate at which one currency is traded against another.
- Exchange Rate Mechanism
- The system by which European Community countries give a central exchange rate against which their currencies fluctuations are regulated.
- Exchange Rate Risk
- The potential loss that could be incurred from a movement in exchange rates.
- Execution Only Stockbrokers
- Those stockbrokers who offer clients, usually, an inexpensive trading facility with no advice, research or recommendations as to investment style or policy.
- Federal Reserve (Fed)
- The Federal Reserve System is comprised of 12 district banks throughout the US, the Federal Reserve Board (FRB) and the Federal Open Market Committee (FOMC). The FOMC, typically headed by the chairman of the FRB, meets eight times each year to set US monetary policy, including key interest rates.
- Fibonacci Lines
- Fibonacci lines are based on ratios that exist naturally. The ratios are based on the "Fibonacci numbers," in which each successive number is the sum of the two previous numbers. e.g. 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc.
A number of relationships exist between these numbers, such as the fact that any given number (after 3) is roughly 1.618 times the previous number. Changes in trends tend to take place near the lines created by Fibonacci studies such as arcs, fans, retracements, and time zones.
- Financing Costs
- CFD Share positions carried overnight will incur financing costs for the full consideration of the position. If a client opens a position with a 5% margin, finance overnight will be on the 100% balance. Clients who are long a CFD will pay interest to FOREX-METAL.COM, clients who are short may receive interest from FOREX-METAL.COM.
- Fixed Exchange Rate
- Official rate set by monetary authorities for one or more currencies. In practice, even fixed exchange rates are allowed to fluctuate between definite upper and lower bands, leading to intervention.
- Floating Exchange Rate
- A scheme whereby a country’s currency exchange rate against others is determined by market forces with no intervention from government.
- An abbreviation of foreign exchange.
- Forward Exchange Contract
- An agreement to buy an amount of a currency at an agreed exchange rate on a fixed date.
- Forward Points
- The interest rate differential between two currencies expressed in exchange rate points. The forward points are added to or subtracted from the spot rate to give the forward or outright rate.
- Fundamental Analysis
- The economic/financial and political analysis of a country that does not involve interpreting charting patterns or price movements.
- A standardized, exchange-traded contract that requires delivery of a commodity, bond, currency, or stock index, at a specified price, on a specified future date. Unlike options, futures convey an obligation to buy.
- FTSE Index
- Three indices comprise the FTSE All Share index - FTSE100, FTSE Mid 250 & FTSE Small Cap.
- FX Forward Rate
- The rate at which a foreign exchange contract is struck today for settlement at a specified future date.
- FX Swap
- A transaction which involves the actual exchange of two currencies (principal amount only) on a specific date, at a rate agreed at the time of the conclusion of the contract (short leg), at a date further in the future at a rate agreed at the time of the contract (the long leg).
- Good for the Day (GTD)
- A limit order, which expires at the end of the day, if it has not been executed.
- GTC - Good Till Cancelled
- An instruction to a broker that unlike normal practice the order does not expire at the end of the trading day. The order placed will remain active until it is either executed or cancelled.
- The primary digits within a FX price quote that are assumed to be known. For instance, a EUR/USD quote of 1.2800 would have a handle of 128. FX dealers/traders do not generally quote the handle.
- Hedge Fund
- A type of unregulated investment fund often used by corporate institutions or high-net-worth individuals and private partnerships that use derivatives for directional investing and/or are allowed to go short and/or use significant leverage through borrowing. Depending on the jurisdiction, these techniques may not be allowed in a typical mutual investment fund.
- Use of investments to manage commercial risk or to minimize a potential loss to an existing position or known commitment. It is also defined as the practice of undertaking one investment activity in order to protect against loss in another, e.g., selling short to nullify a previous purchase or buying long to offset a previous short sale. While hedges reduce potential losses, they also tend to reduce potential profits.
- If Done Order
- An “If Done” order is a combination of two orders and should be ideal if you are unable to watch the market all the time but want to participate in a market move in your favour and/or exit a move against you.
- The difficulty of changing your assets in cash because of a lack of demand for whatever it is you're trying to sell. See Liquidity. As a market maker Forex-metal.com provide liquidity by constantly quoting a bid and offer spread.
- IMF - International Monetary Fund
- An organization set up by Bretton Woods to overlook the fixed exchange rate regime (now ceased) and to provide borrowing facilities to allow corrective action to be taken, alleviating exchange rate pressure in deficit countries. Now also used as an arbiter of world economic affairs.
- A statistical indicator providing a representation of the value of the securities which constitute it. Indices often serve as barometers for a given market or industry and benchmarks against which financial or economic performance is measured.
- A steady rise in the general prices of consumer goods and services, resulting in a decrease in a currency’s purchasing power. Inflation rises with increases in money supply and credit, and is widely gauged through the Consumer Price Index (CPI) and Producer Price Index (PPI). Most central banks strive to maintain inflation in the 2-3% range.
- Initial Margin
- A deposit required by a broker before clients can transact margin deposit trading.
- Interbank Rates
- FX rates quoted by large international banks to transact with other large international banks.
- Interest Rate
- The interest paid on borrowed funds (or received on funds loaned), expressed as an annualized percentage. There are many different interest rates quoted for each country, but the rate most relevant to FX traders is the overnight borrowing rate as determined by each country’s central bank. In the US, the Federal Reserve committee meets every few months to set the Federal Funds rate. The overnight lending rates not only determine how much interest is earned or owed on currency positions held overnight, but also impact currency valuations, as higher yielding currencies (all else held constant) attract more capital.
- A country’s Central Bank periodically comments publicly on monetary policy and on its outlook towards its own currency, in an attempt to influence market sentiment and by extension, its currency exchange rates.
- Borrowing funds in order to increase the potential return on investment. FX trading providers typically allow 1:100 leverage.
- The London Interbank Offered Rate, the rate charged by one bank to another for lending money.
- Limit Order
- An order to buy or sell a share at a specific price. The order will only be carried out by the broker at that price, or a better one. If the broker can't fulfil the limit order, it lapses.
- Liquid Market
- A liquid market is one where there is a high number of bids and offers, resulting in a tight bid-ask spread. Within liquid markets, buyers and sellers can easily trade in and out of positions, without worrying about not finding a counterparty to their intended transaction. The FX market is the world’s most liquid financial market.
- The level of continual buy and sell activity making up the market demand for the shares and indicating the ease with which investors can undertake transactions.
- Buying an investment with a view of the investment going up (opposite of short)
- MACD - Moving Average Convergence/Divergence
- is a technical indicator that measures a FX pair’s exchange rate swings. The MACD uses (in its calculation) two exponentially smoothed moving averages of the FX pair’s historical price, and usually spans over a period of time. The MACD is often compared to its own moving average, providing traders signals on when the FX pair might rise or fall.
- Margin in the context of FX & CFDs
- A cash deposit provided by clients as collateral to cover losses (if any) that may result from the client’s trading activities.
- Margin Call
- Demand that a customer deposit additional money or securities to bring a margin account back up to the initial margin or minimum maintenance requirements. If a customer fails to respond, securities in the account may be liquidated.
- Margin Requirements
- Investors are asked to deposit a small percentage of the overall cost that would be required if they were to purchase the equivalent shares in the physical market. Even though the CFD investor's outlay is small in comparison to the equivalent physical trade, the investor will still be exposed to the same potential profit and loss. This means that your potential Return on Investment is magnified.
- The daily adjustment of an account to reflect accrued profits and losses often required to calculate variations of margins.
- Market Capitalisation / Mkt Cap
- Market capitalisation is the number of shares in issue multiplied by the share price at the time the market capitalisation was calculated.
- Market Order
- A market order is an order to buy or sell at the current market price. A trader specifies the currency pair and the deal size and is given a two-way price (bid and ask price) on which to deal.
- A firm or individual whose main responsibility is to create a market in a currency pair by providing firm two-way quotes (bid and ask).
- Mid Price
- The mid point of the bid / offer spread quoted by the market makers. The price shown in the share price pages and market reports within the financial media, but not the price at which you could necessarily expect to conclude a deal to buy or sell. The price at which you buy will be higher and the price at which you sell will be lower than the mid price in almost all circumstances.
- NASDAQ - National Association of Securities Dealers Automated Quotations System
- The second largest stock exchange in the US, specialising in high-tech and internet-related companies, such as Microsoft. The movements of the NASDAQ can have a significant effect on the UK markets, particularly the recently-launched techMARK index of technology, media and telephony companies.
- New Issue
- A company that is floated on the stock market for the first time. Offering shares to the investment public is a way of raising capital for further expansion. Also known as the Initial Public Offering (IPO).
- NYSE - New York Stock Exchange
- The largest and oldest US stock exchange
- OCO - One Cancels the Other
- If you place a sell limit and a sell stop order in the same stock at the same time. When either order is executed the other will automatically be cancelled. Also applies to a buy limit and buy stop order.
- The right, but not the obligation, to buy (call option) or sell (put option ) a specific amount of a given stock, commodity, currency, index, or debt, at a specified price (the strike price) during a specified period of time.
For the holder, the potential loss is limited to the price paid to acquire the option. When an option is not exercised, it expires. No shares change hands and the money spent to purchase the option is lost. For the buyer, the upside is unlimited. For the writer, the potential loss is unlimited unless the contract is covered, meaning that the writer already owns the security underlying the option. There are two types of options: American style and European style. American options can be exercised at any time between the purchase date and the expiry date and European options can only exercised on a single day, usually its expiry date.
- Order Book
- Introduced on 20 October 1997. FTSE 100 stocks are traded on an electronic order book (inside the SEAQ quote system). When bid and offer prices match, new incoming orders are automatically against orders on the book.
- Open Position
- A long or short position which has not been closed out by an equal and opposite position.
- Market prices that have risen too steeply and too quickly.
- Market prices that have declined too steeply and too quickly.
- OTC - Over The Counter
- A market conducted directly between dealers and principals via a telephone and computer network rather than a regulated exchange trading floor.
- "Pegged" Currency
- A currency is pegged or fixed when its country’s Central Bank decides to tie its value to a stronger currency, in an effort to stabilize its own currency. Currencies such as the Hong Kong Dollar have historically pegged to the US Dollar.
- Plaza Agreement
- Agreement made between the US, France, Germany, Japan and the UK in 1985, to work together on influencing exchange rates.
- Depending on the context, normally one basis point, i.e., 0.0001.
- A collection of securities owned by an investor.
- The value (quantity) of a tradable item held by a trader.
- An individual or a firm that quotes prices on which it is prepared to trade a currency pair.
- A market participant looking to enter a trade, who has no ability to make the market. Pricetakers can only trade at prices offered by pricemakers. For instance, a pricetaker hoping to sell immediately would have to submit a sell order at the market (the current bid). The majority of retail partcipants in the FX market are pricetakers.
- A retreat of a FX pair’s exchange rate from a recent top. A pullback may be a brief reversal of the current upward trend, signaling a pause in upward momentum. After major upward moves, pullbacks can provide buying opportunities. Pullbacks though, may also represent trend reversals.
- PPP - Purchasing Power Parity
- The theory that identical tradable goods and services ought to be priced the same across two different countries, otherwise arbitrage opportunities would arise. PPP states that over the long term, the exchange rate between two currencies adjusts to eliminate these arbitrage opportunities. PPP theory ignores transportation costs, tariffs and transaction costs. It also assumes competitive markets in both countries.
- Quoted Currency
- The currency in a foreign exchange deal; the amount of which is equated to one unit of the base currency.
- Range Trading
- A trading strategy in which the trader identifies a FX pair currently trading in a range. The trader buys when the pair finds major support (at the bottom of the range) and sells at major resistance (at the top of the range). Trading is typically repeated at support and resistance until the FX pair breaks out of the range.
- Reserve Currency
- The currency which is most used by governments and institutions for holding cash reserves. Currently, it is the US dollar.
- A price level at which you would expect selling to take place.
- Rights Issue
- An additional issue of shares by the company to existing share holders and at an advantageous, discounted, price. A means for the company to raise new funds for further development or to finance a new acquisition for cash. A two for five rights at 145p means that the existing share holder has the right to acquire a further two shares for every five currently held at a new cost of 145p per share acquired.
- A technical momentum indicator comparing the magnitude of recent gains to recent losses, helping determine overbought and oversold conditions of a FX pair. It is calculated using the following formula:
RSI = 100 - (100 / 1 + RS)
RS = Average of x days' up closes / Average of x days' down closes
RSI ranges from 0 to 100. RSI readings above the 70 level indicate that the FX pair may be overbought, while readings below 30 likely point to an oversold FX pair.
- A distinct subset of a market whose components share similar characteristics. Stocks are often grouped into different sectors depending upon the company's business. For example the FTSE 100 has banking, oil and gas and pharmaceutical sectors.
- Selling Short
- This is practice of selling shares that you do not own in the hope that the share price falls before you have to settle the contract. If the price does fall you can then buy the shares at the lower price and pocket the difference.
- A market position where the client has sold a currency or security he or she does not already own, in anticipation that it will decrease (depreciate) in value. For example, a trader who has sold 100,000 EUR against the USD is short the EUR versus the USD. The euro is expected to decline in value in relation to the USD in this scenario.
- Simple Moving Average
- A simple, or arithmetic, moving average can be calculated by adding the FX pair’s closing exchange rate for a number of time periods and then dividing this sum by the number of periods. The SMA is essentially the average FX pair exchange rate over a time period. Equal weighting is applied to each exchange rate used in the calculation.
- A sophisticated individual who trades with significant leverage, taking on above average risk in hopes of above average returns.
- Speculative Attack
- Currencies that are identified by sophisticated speculators as trading within an artificially high or low range are prone to be attacked. Speculative attacks may succeed in bringing the currency value back in line with intrinsic value (as determined by fundamental and/or technical analyses) should sufficient numbers of influential market participants decide to overwhelm current government-supported positions.
- The FX contract is based on an instantaneous price and the settlement date is two business days forward.
- The difference between the marketmaker’s bid and offer price for a currency.
- Spread Betting
- A type of bet that gives investors the chance of making unlimited winnings (and losses), in contrast to the conventional fixed-odds type of bet, where the potential winnings and losses are known before the event. They generally quote spreads wider than the market. Share CFDs are a more sophisticated way of trading.
- S & P - Standard and Poor's Stock Index
- US performance index of the country's top 500 companies.
- Where a client has not traded in that currency or where an earlier deal is reversed, thereby creating a neutral (flat, square) position. For example: bought $100,000 then sold $100,000 = SQUARE. Also known as flat.
- An exchange member firm which provides advice and dealing services to the public as well as trading on its own account.
- Stop loss Order
- Stop orders can be used to enter or exit the market. Stop loss orders are used to close out existing open positions. Stop loss orders can be used to limit your trading risk and are an essential part of disciplined trading. Stops are used so that should the market move against you, you are automatically taken out of a position, effectively limiting your loss. Stop losses can also be used to lock in profit. As the market moves in your favour you can move your stop order up with the prevailing price, locking in profit or minimizing losses, if the market suddenly moves against you. This is known as a trailing stop.
- Support Level
- A price level at which you would expect buying to take place.
- This market groups together technology companies from across the market. It has its own indices, the FTSE techMARK 100 and the FTSE techMARK All Share.
- Technical Analysis
- Analysis of market movements based chart study, moving averages, volume, open interest, formations, and other technical indicators.
- Tom Next
- A transaction with value dates for tomorrow against the next day.
- A description of a market where traders have full immediate knowledge of the details of trades taking place.
- A bond issued by Government. Bonds issued by the UK government are called gilt edged stock, commonly referred to as gilts.
- Trend Lines
- These lines are drawn to illustrate the broader direction of the FX pair. Trend lines can vary in length, applying to either the short, intermediate or long term. Trend lines are used by trend traders to help identify support and resistance, and to caution against taking any countertrend positions.
- Trend Trading
- A trend trader strives to profit by taking a position in a FX pair in the direction of the pair’s momentum. A long position is entered when a FX pair is trending upward (higher highs and higher lows), while a short position is taken when the stock is trending down (lower highs and lower lows). Trend traders stay in their position until the trend breaks.
- Is the security or commodity that is delivered or being traded when dealing in futures or options.
- Underlying Currency
- Currency which forms the basis of a contract and, hence, is bought or sold when the contract is exercised.
- Variation Margin
- In margin deposit trading: funds required to be deposited by a client when a price movement has caused funds to fall below the margin requirement. Conversely funds may be withdrawn by a client when a price movement has caused funds to rise above the margin requirement.
- Value Date
- Settlement date of a spot or forward deal.
- Value Spot
- The settlement value upon two business days. This settlement date is always used in the interbank cash market, unless otherwise requested by the client.
- How quickly the price of a security rises and falls over time. A highly volatile share can be risky for short-term investors who stand a greater chance of buying at a peak and selling in a trough at a loss.
- The return earned on an investment taking into account the annual income and its present value. There are a number of different types of yield, and in some cases different methods of calculating each type.
- Yield Curve
- A series of interest rates plotted against the time to maturity, to which they apply.