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Trading FAQ
Leverage is the number of times you can increase your purchasing power using the available fund in the account. For example, using our STP account leverage of 1:500, it means that if you have $10,000 USD in your account, you can buy a position worth 500 x 10,000 = $5,000,000 USD.
Margin can be thought of as a good faith deposit required to open and maintain open positions. This is not a fee or a transaction cost, it is simply a portion of your account equity set aside and allocated as a margin deposit.
FX margin requirement is calculated using the formula below:
(Market price x Trade Size) / Leverage = Margin Requirement
We will demonstrate the calculation using the following example:
Given that GBP/USD market price is quoted as 1.4385, to trade one mini lot (10,000) using our STP account leverage of 1:500, Margin Requirement = (1.4385 x 10,000) / 500 = $ 28.77 USD
Note: If your account base currency is not in USD, the margin requirement account will be converted into your base currency.
Margin Call is a measure set by the brokerage to alert traders before their account funds fall below the Margin Requirement. This will prevent positions from liquidation due to insufficient Margin Requirement. Therefore, the minimum amount of deposit required to be set aside for your trading will be higher than the Margin Requirement. If your account funds fall below the Margin Call level, a notification will be displayed on your MT4/MT5 trading account to alert you to make additional deposit to maintain your open positions. At Anzo Capital, Margin Call is set at 80%
In the event whereby the margin level of your trading account funds hits or falls below 50%, a stop-out will be triggered. We will start liquidating your most unprofitable positions to prevent further losses into the negative territory whenever a stop-out is activated.
Margin Level = (Equity/Used Margin) x 100%
Swap rates are calculated automatically by the MT4/MT5 platform. For the most updated rollover/swap rates, please refer to the Market Watch panel in our MetaTrader 4 and follow the steps outlined below:
Swap rate is calculated automatically at the end of every trading day. The rollover process starts at 23:59 server time. Our Server Time is set to GMT+3 during DST, GMT+2 after DST.
Most banks across the world are closed on Saturdays and Sundays, so there is no rollover on those days, but most banks still apply interest for Saturday and Sunday. To measure for this, the forex market books three days of rollover on Wednesdays, which makes a typical Wednesday rollover three times the amount.
Take Profit and Stop Loss are pending orders. Once they are triggered, pending orders become market orders and are subjected to market liquidity availability at that time. Hence, unfortunately, it may not always be possible to execute the pending orders at the desired levels due to price volatility and unforeseeable market conditions.
Our pricing is derived from top tier liquidity providers, which stream prices to our platform.
Our Server Time is set to GMT+3 during DST, GMT+2 after DST. It cannot be changed on your MT4/MT5.
MT4/MT5 chart displays the BID price. However, in order to close a short position, ASK price is used. Since ASK = BID+SPREAD, it is insufficient to trigger a take profit order when only the BID price has reached profit taking level.
We have over 60 products including Forex, Precious Metals and CFDs on our platform and we will be expanding the list from time to time.
No, we do not.
Slippage is a normal element when trading in CFDs and leveraged FX. Slippage more often occurs during periods of illiquidity or higher volatility (for example due to news announcements, economic events and market openings and other factors). To provide the best possible trading experience to clients, we do not interfere in the execution of client trades and treats all slippage scenarios in the same way as any financial exchange. The prices you receive and are executed at reflect the best possible prices received from the banks we partner with. Please take extra precaution when trading during periods of high volatility.
This situation occurs when at the time that an Order is presented for execution, the specific price showed to the Client may not be available; therefore, the Order will be executed close to or a number of pips away from your requested price. So, Slippage is the difference between the expected price of an Order, and the price the Order is actually executed at. If the execution price is better than the price requested by the Client, this is referred to as positive slippage. If the executed price is worse than the price you have requested, this is referred to as negative slippage.
In other words, your Orders may not be executed at declared prices. Slippage can happen when there is not enough liquidity at the requested price to fill your order, so your order is filled at the next best available price received from the banks we partner with.
It is noted that Slippage can occur also during Stop Loss, Take Profit and other types of Orders depending on market conditions. When these orders are triggered, it becomes a market order available for execution at the next available market price. The execution of your Pending Orders at the price specified cannot be guaranteed. However, we confirm that your Order will be executed at the next best available market price from the price you have specified under your pending Order.