Execution Rules Specifications
Our server time is GMT+2 in the winter and GMT+3 in the summer.
Please be aware that the US shifts the time on the first Sundays of March and November, whereas Europe shifts on the last Sundays of March and October. FXChoice adheres to European time changes.
We send out detailed emails prior to the shift in time, so be sure to subscribe to our emails.
Our working hours
We are round-the-clock (24 hours) from Monday 00:00 to Friday 23:59:59 server time. As we operate globally, we offer multilingual client support services across all time zones within the above timeframe. We will not quote any prices outside our working hours; therefore, no orders can be placed by clients during that time.
Holidays are announced through our website, by email or internal mail of the MT4 trading terminal.
Market watch time
The time indicated in the Market Watch window of the MT4 trading terminal is the time of the last quote received.
For all tradable instruments, we quote two prices: The higher price (ASK) at which the client can buy (go long) for that instrument, and the lower price (BID) at which the client can sell (go short) for that instrument.
The spread is the difference between the BID and ASK prices. The lowest spread you can get is close or equal to zero, in this case BID=ASK. We do not quote a negative spread. We offer some of the most competitive spreads in the industry. The best way to evaluate our spreads is to open a demo account.
*Important. Since we are a variable spread broker, the spread will greatly depend on the prevailing market conditions and liquidity provided by the banks. When FX markets become volatile and/or thin (less liquid), variable spread tends to widen.
A “Market order” is the simplest order type. It is an order to buy or sell at the prevailing market price.
A “Pending Order” is an order to buy or sell at a pre-defined price in the future. The following types of pending orders are available:
- Buy Limit
- Buy Stop
- Sell Limit
- Sell Stop
You can attach a Stop Loss and/or Take Profit to any order.
*You can modify a Stop Loss/Take Profit level before or after the order has been executed, but the order itself cannot be modified or deleted when it is being executed by the broker.
Execution of orders
A Buy Limit, Buy Stop, Stop Loss and Take Profit for an opened short position are executed at the ASK price.
A Sell Limit, Sell Stop, Stop Loss and Take Profit for an opened long position are executed at the BID price.
*Stop Loss, Take Profit, Buy Limit, Buy Stop, Sell Limit and Sell Stop are executed at the requested price; however, under certain trading conditions it may be impossible to execute the above at the requested price and FXChoice has the right to execute them at the next best price. In market execution mode this situation is commonly referred to as slippage and it can be both positive or negative for all order types.
Minimum tradable lot size
The minimum trade size is 0.01 lots.
For currency pairs, the Contract Size value is 100,000
This means that the trading volume of 1 lot is equal to 100,000 units of the base currency. Therefore, the minimum tradable lot size 0.01 lots for currencies is equal to:
0.01*100,000 = 1000 units of the base currency
In the trading terminal for Gold (XAUUSD), the Contract Size value is 100
This means that the trading volume of 1 lot is equal to 100 units of the XAU (gold)
Therefore, the minimum tradable lot size 0.01 lots for metals is equal to:
0.01*100 = 1 units of the XAU (gold)
The number of base currency units in 1 lot is specified in the contract specification. You can find this data on the instrument specifications page or on our trading platform.
The required margin is the amount needed to be deposited/present in your trading account in order for a position to be opened. Your leverage will determine how much margin you actually need to open up a position. The maximum available leverage ratio is 1:200. Please visit our FAQ section for a more in depth explanation of how a margin is actually calculated.
Margin Level Required to Open Locked or Hedged Positions
The hedged margin is the funds which are required to open and support an open locked (hedged) position. They are open positions on the same instrument in different directions.
The calculation of the margin hedge has several steps:
For uncovered volume
For covered volume (if the hedged margin size is specified)
The resulting margin value is calculated as the sum of the margins calculated at each step.
The size of the hedged margin for locked positions can be found on our site and our trading platform in the contract specifications for each instrument.
What are your Margin Call and Stop out Levels?
These requirements differ by account type. If you are a holder of our classic MT4 account, you will receive a margin call at 25% and will be stopped out at 15%. What this means is that when your equity falls to 25% of the margin required to hold your position, you will receive a warning, i.e. your position will be highlighted red in your MetaTrader4 platform. If the market continues to move against you and your equity eventually falls further below to 15% of the required margin, you will be stopped out of your position. To prevent that from happening you have to either think about closing some of your positions or adding more funds to increase your equity. Please visit our FAQ section for a more detailed explanation with examples.
Any positions held at the end of the trading day may be subject to a ‘financing charge’ which is shown on an FXChoice account as ‘rollover’.
Our daily interest debit or credit amounts (from now on referred to as the ‘rollover’) are based on the total face value of the position.
Please note that the rollover detailed on MetaTrader is for 1 lot and not the minimum trade size.
- Each day, the rollover amounts per lot are shown in the Contract Specifications’ window. Forex positions that are open at the close of business on Wednesday will incur a 3-day rollover.
- Each day, the rollover amounts per lot are shown in the Contract Specifications’ window. Cryptocurrency positions that are open at the close of business on Friday will incur a 3-day rollover.
- Each day, the rollover amounts per lot are shown in the Contract Specifications’ window. Index positions that are open at the close of business on Friday will incur a 3-day rollover.
- Applicable to most cash indices, dividend payments will be applied as debit/credit along with the rollover to your open positions. Adjustments will apply on the eve of the ex-dividend date of the constituent members of the relevant Index. The adjustment will appear as part of the rollover debit/credit on your statement.
When an equity goes ex-dividend, the price of that equity theoretically decreases by the dividend amount. In practice, this does not always happen as many market forces affect an equity’s price. The amount of points an index cash CFD drops by is dependent on the weighting of the equity within the index. If more than one constituent equity of an index CFD goes ex-dividend on the same day, the amount of points each equity will theoretically cause the sector or index to drop by is added together to calculate the total amount of dividend points or ‘drop points’. FXChoice will either collect or
pay dividends on the hedge positions that we have entered into against client-issued CFDs.
Where an index is a Total Return Index, dividend payments will not be credited/debited.
An example of a total return index is the DE30Index where the cash disbursements are reinvested back into the index.
- Energy CFD
WTICrude and BrentCrud: these are forward instruments, so no overnight credits/debits or dividends are applicable.
WTISpot and BrentSpot: each day, the rollover amounts per lot are shown in the Contract Specifications’ window. Oil will incur a 3-day rollover on Wednesdays.
- Metals CFDs
Each day, the rollover amounts per lot are shown in the Contract Specifications’ window. Positions that are open at the close of business on Wednesday will incur a 3-day rollover.
Please note that the calculation of ECN commission is based upon the volume in USD. All trades on PRO accounts are subject to a commission of USD 7.00 per notional amount of USD 100 000 traded (1.0 lot). Please visit our FAQ section to see the examples.
You can use our Pips+ programme to reduce your commission. For more details about the programme, which is designed to reward our most active traders with lower trading costs, click here.