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How do I know how much P/L will be gained by my Stop loss and Take profit before I place them?
Strike Price = 1.15151
Take Profit = 1.16151 = 100 Pip movement
Stop Loss = 1.14151 = 100 Pip movement
Pip value * Pip Movement = P/L when Stop Loss or Take Profit is triggered
11.5 * 100 = +-1150$
How do I calculate Commissions?
per 1 lot * Contract size = Commission in Base Currency
0.10 = 0.45???
* Base Currency vs Account Currency = Commission is Account Currency
* 1.15151 = 0.52$
How do I calculate spreads?
Price ??? Ask Price = Spread
- 1.15151 = 0.00011 = 1.1 pip spread
How do I calculate swaps?
If Swaps are given in Points
Pip Value * Swap Rate * Number of Nights / 10 = Swaps
11.5 * -8.3 * 5 / 10 = 47.725$
If swaps are given in Pips
Pip Value * Swap Rate * Number of Nights = Swaps
11.5 * -0.83 * 5 = 47.725$
How do I calculate Free Margin?
- Margin (used) = Free Margin
- 115.151$ = 10834.849$
How do I calculate Margin Level?
/ Margin (used) * 100 = Margin Level
/ 115.15 * 100 = 9509.34%
How do I calculate margin requirements?
Account Balance is in USD and you are trading EUR/USD
standard lot size * Trade Size * Margin = Margin Required in Base
* 0.1 (10,000???) * 0.01 = 100???
Required * Exchange Rate of Base Currency vs Account Currency =
Margin Required in Account Currency
1.15151 = 115.151$
How do I calculate a value of 1 pip?
Amount of Base Currency * Pips = Value in Quote Currency
Value of 1 pip in EUR/USD= 1 Lot (100 000 ???) * 0.0001= 10 USD
Value of 1 pip in USD/CHF= 1 Lot (100 000$) * 0.0001=10 CHF
Value of 1 pip in EUR/JPY=1 Lot (100 000 ???) * 0.01= 1000 JPY
Account Leverage = Margin or Margin Percentage
1 / 50 =
0.02 or 2%
What is an Expert Advisor?
An EA or
Expert Advisor is a custom made Algorithmic Trading Program that is
pre-programed to look for certain market conditions that you run
through your trading platform to either allow you to have an
automated trading account or signal you when certain market
conditions are met.
What is the difference between an "intraday" and "overnight" position?
positions are those positions opened anytime during the 24-hour
period AFTER the close of SquaredDirect???s normal trading hours at
23:59 GMT. Overnight positions are positions that are still open at
the end of normal trading hours, which are automatically rolled over
by SquaredDirect at competitive rates (based on the interest rate
differentials of currencies) and applied as roll points.
Can I go long and short at the same time?
SquaredDirect wants to maximise its client???s flexibility to hold
positions for different durations or as part of different strategies.
How much money is required to open a position?
The minimum contract size that you can trade is 0.01 of a standard lot which requires a $10 margin requirement for most of the instruments. Other products might require higher margins. For full details, please see our Contract Specifications for the required margins on all our products on our website under the Trading section.
Why should I place a Stop Loss (S/L)?
Loss protects you on trades that go against you, and therefore also
protects your overall account balance. Markets can be volatile and it
is recommended to always use Stop Loss to limit any losses.
How do I set a stop loss or take profit?
the Edit Position pop up dialog: Create a Take Profit position by
selecting Close at profit and specifying a triggering Rate or Amount.
What is "Take Profit" and "Stop Loss"?
Stop losses and take profits are both orders, which are placed in the market to close an open position. "Stop Loss" is to prevent further adverse price movement and ???Take Profit??? is to gain from advantageous price movement.
How can I manage risk in volatile markets?
Some ways to manage your risk during volatile markets is to ensure your account is sufficiently margined at all times. Several precautionary measures are recommended:
??? Monitor the status of your open positions.
??? Specify a stop-loss to limit downside risk.
??? Keep your account funded in excess of your required margin.
What is a Pivot Point?
Pivot Point is an Indicator of potential market movement at a
specific Price Level. It is calculated by an average of significant
What is Swap?
is a rolloverinterest for keeping your positions open overnight,
that can be both positive or negative.
What is leverage?
is a consequence of Margin, allowing you to place larger trades on
the market. It can help you maximise your returns but also works the
same way with losses. Understanding and controlling your leverage is
What is Margin?
Margin is an amount of the equity in your account delegated as Margin Deposit. Your trade size will determine the amount of margin needed to hold a position open. Your Margin Requirements increase as your Trade Size does.
What is a slippage?
may occur during periods of high market volatility, usually caused by
important economic news. It results in your position being executed
at a different rate than the rate you specified; closing at the next
What happens to my open positions at the end of the trading day?
automatically rolls forward all open currency positions to the next
day's value date at the end of each business day at 23:59 GMT.
Trading is typically suspended for up to one minute during the roll
on the currency pairs involved, trades will either earn or pay a
small premium, depending on the interest rate differential between
the two currencies.
What do "long" and "short" positions mean?
position - when the client is buying the asset and a short position
when the client is selling the asset.
Are there any disadvantages to trading on leverage?
leverage enables you to control a large amount of capital with a
small deposit margin, it may also expose you to outsized negative
What is the spread?
spread is the difference between Bid and Ask prices.
What is a pip?
pip is the smallest unit of change in a financial instrument's price
ratio (rate of a currency pair).
What is an Index (Indices)?
Index is a collection of Stocks in one index, giving a total value on
the collective stocks, as the stocks values inside the index
fluctuate so does the overall value of the Index itself.
What is Forex?
Exchange market (Forex, FX, currency market) is an over the counter
(OTC) or decentralized global market for buying and selling
currencies at current or determined prices.
What is a Commodity
commodity is mostly Raw Materials that can be Bought or Sold, for
example Gold, Silver or Oil
What is a CFD?
CFD is a Contract for Difference, meaning when trading you will not
be physically purchasing any on the instruments, you activate a
contract with the company in trading on the difference in value from
the strike price to the closing price in which you may take either a
Long or Short position.
Who trades in the Forex Market?
Forex market, unlike the stock market, is decentralised with many
participants. Until relatively recently, forex trading was largely
the exclusive preserve of central banks, large financial
institutions, multinational firms, investment managers, hedge funds,
insurance companies and brokerage firms. The emergence of the
internet, combined with the introduction of technologically advanced
retail trading platforms has vastly changed the forex trading
landscape, opening up this potentially lucrative marketplace to a
growing number of individual retail traders.
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