FOREXYARD Maintains fixed spreads during normal market conditions.
Trade Size
All trades through the FOREXYARD trading platform are executed in standard sizes of 10,000 base currency per one lot. However, the maximum allowed trading volume is $5,000,000.
Here are some examples of a one unit trade size:
U.S. Dollar/Japanese Yen (10,000 U.S. Dollars)
Euro/U.S. Dollar (10,000 Euros)
Euro/Great Britain Pound (10,000 Euros)
Euro/Japanese Yen (10,000 Euros)
Smaller trade sizes are available via the FOREXYARD SuperMini account. Learn more through our website: www.forexyard.com, or through this blog.
Margin
FOREXYARD enables currency trading to be conducted on a highly leveraged basis. Every trader is able to select the degree of leverage or gearing that the trader wishes to employ in trading. Unless the trader specifies otherwise, FOREXYARD sets the leverage levels to FOREXYARD’s default margin level. The leverage may be changed from time to time at the sole discretion of the dealing desk, based on market conditions.
1:200 Leverage
Clients must have approximately 1/2% of the value of the positions they hold in their account for each lot of currency being traded (approximately 200:1 leverage). This amount does not change after 5:00 pm New York time, which is the rollover cut off, but stays constant at approximately 1/2% per lot the entire day and overnight.
Margin Watcher
There is also an important safety feature embedded in this system that prevents clients from losing more money than they have in the account. Should the account equity – meaning the total floating value of the account – fall below the margin requirement of approximately 20% of the used margin, the dealing desk will close all positions. This protects the trader from losing more than the funds deposited into the trading account.
Rollover / Interest Policy
At 5:00 pm New York time, funds are subtracted or added to accounts with open positions because of the automatic 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.
Why does Rollover take place? 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 100,000 Euros on Thursday, unless the position is rolled over. As a service to our traders, FOREXYARD automatically rolls over all open positions to the next settlement date at 5:00 pm New York 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. 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.
Types of Orders
The trading platform provides sophisticated order entry and tracking of market orders, entry orders, stop/limit entry orders, stop-loss orders and trailing-stops orders. All of the above orders are Good Until Cancelled (GTC), which is valid until the order is executed or cancelled.
Margin: Managing your Risk in the FX Market
By trading on margin, traders have the ability control positions much larger than their deposit. The margin deposit for leverage is not a down payment on a purchase of equity, as many perceive margins to be in the stock market. Rather, the margin is a performance bond, or good-faith deposit, to ensure against trading losses. This is very useful to short-term day traders who need the enhancement in capital to generate quick returns. Traders should be aware that leverage is a double-edged sword. Without proper risk management, this high degree of leverage can lead to large losses as well as gains. If the equity in your account drops below the margin required to maintain your open positions, the dealing desk will close all open positions. This guarantees limited risk. Once your used margin reaches 20% of the equity, a margin call will lead to all open positions being closed by the dealing desk. To learn more about the margin watcher feature please contact the FOREXYARD staff, which is available 24-hours a day to walk you through the trading station.
