TRADING FAQ

What Is Limit Order?
A limit order is an order with restrictions on the maximum price to be paid or the minimum price to be received. As an example, if the current price of USD/YEN is 112.00/05, then a limit order to buy USD would be at a price below 112.05. (ie 111.50).

What Is A Stop Loss Order?

A stop loss order is an order type whereby an open online forex trading position is automatically liquidated at a specific price. As an example, if an investor is long USD/YEN at 112.35, they might wish to put in a stop loss order for 111.75, which would limit losses should the dollar depreciate, possibly below 111.75.


What Is A Position Order?

Position orders are directly related to individual positions. These forex currency trading orders are only active for as long as the position remains open and can be a stop loss or limit order.


Can I Place A Trade Via E-Mail?

No. We do not accept trades via email. You may place a trade online or by calling our 24-hour dealing desk.


What Is Margin?

Margin is essentially collateral for a position. It allows forex traders to take on leveraged positions with a fraction of the equity necessary to fund the trade. In the equity markets, the usual margin allowed is 50%, which means an investor has double the buying power. In the forex market leverage ranges from 1% to 2%, giving investors the high leverage needed to trade actively.


What Does It Mean Have A 'Long' Or 'Short' Position?

In trading parlance, a long position is one in which a trader buys a currency at one price and aims to sell it later at a higher price. In this scenario, the investor benefits from a rising market. A short position is one in which the trader sells a currency in anticipation that it will depreciate. In this scenario, the investor benefits from a declining market. However, it is important to remember that every FX position requires an investor to go long in one currency and short the other.