Trading Basics

What are pending orders?

Limit and Stop Orders are known as pending orders and unlike market orders are triggered only when the market reaches a price you have set.

Limit Orders are used to enter the market at a price advantage. For example, let’s assume the current market price of the EURUSD is at 1.2600. You feel this price is too expensive to buy EUR at. You believe the pair will decrease before it rises again and you are comfortable at buying the currency at 1.2560. In this scenario, you place a Buy Limit Order at 1.2560. Once the market price reaches that price, your Buy Order will be filled.

The same logic goes for Sell Limits but in reverse. With a Sell Limit you believe the price is too low to sell EUR against USD from. The price of a Sell Limit I set at higher than market price and the order is triggered once the market price reaches that level.

A Stop Order on the other hand relies on a price that is higher than the current market price on the Buy side and lower than the price of the market on the Sell side.

Stop Orders are mainly used to catch price break outs and are meant to get you into the market as the price of a currency is rising or falling. Assuming the price of the EURUSD is at 1.2600. You believe that the pair has a very strong resistance level at 1.2640 and that once the market reaches that level, the pair will break out and keep rising. You place the Buy Stop Order at 1.2640 to catch that breakout.

Again, the same logic applies to a Sell Stop Order, where the order price is set at less than the current market price to catch a movement to the downside.

What is a Stop Loss Order?

A Stop Loss Order is an order to close a losing trade automatically at a certain price in order to limit its loss.

This type of order is one of the main risk management tools you can benefit from as a trader especially if you are not actively following up on your account.

What is a Take Profit Order?

A Take Profit order allows you to close a profitable trade automatically at a price you set.

This type of order is one of the main risk management tools you can benefit from as a trader especially if you are not actively following up on your account.

What is news trading and how can it affect my account?

The financial markets go through various levels of volatility on a daily basis. A number of factors affect market volatility including breaking economic or political news in addition to the slew of daily economic releases scheduled for every day.
Depending on the level of severity of the news, market volatility can spike. Since prices rapidly change during high market volatility, the chances of executing your trades at desired prices decrease, which may result in filled trades at the next best price.

We do not recommend trading during major news releases. In addition, you must always maintain high margin levels in your account in order to cope with major price movements during news.

What is slippage and why does it happen?

Slippage is the act of filling market or pending orders at the next best price after the desired one.

This happens in highly volatile markets where price changes occur rapidly or in low liquidity markets when there is not enough volume being demanded or offered at certain prices.

What is hedging?

Hedging is the act of undertaking two opposing positions of the same instrument. You are considered hedged when both trades are for the same volume.

Fully hedged positions will result in your margin requirement decreasing to zero.

For example, if you were to open a buy position for 1 lot of EURUSD, with a 1% margin requirement, this would be USD 1,000.
To fully hedge your position, you would have to open a sell position for the same volume of EURUSD which would also require a margin of USD 1,000.

However, since your positions are now fully hedged, the margins of both trades negate each other.
Note, that in partially hedged positions, the required margin would be the difference between the required margin levels of each position.

What is leverage?

Leverage is the effect of magnifying your purchasing power of a certain instrument in return for freezing an amount in your account called the required margin. Margin trading and the use of leverage allow you to trade with much higher volumes as opposed to trading on a cash to cash basis.

Note that margin trading is a double edged sword that can magnify both profits and losses.

What tools can I use to help me make better trading decisions?

FIXI offers all traders access to the Tools section on its website which you can access by clicking here. This section includes valuable news and analysis tools that keep you up to date with daily market moves and expectations.

In addition, FIXI sends all its clients daily market reports with detailed instrument analysis and projections as well as SMS notifications with the latest breaking news announcements.

What do the following terms in the Terminal window of MetaTrader 4 signify: Balance, Equity, Margin, Free Margin, Margin Level?

Balance: Total amount of funds in the account after the profits and losses from all trades have been realized.

Equity: Balance plus/minus the profits/losses of open positions.

Margin: The margin level needed in order to hold open positions.

Free Margin: Equity minus the Margin held

Margin Level: The percentage of free margin determined by (equity/margin held) x 100

Are trades and pending orders guaranteed?

Nothing is guaranteed in the financial markets due to the varying levels of price volatility on a daily basis. All positions are filled on the basis of market execution.

Market execution means all trades will be executed at the best available price in the market at the time you take or close your order. This ensures that you will always be filled at the best price which might not always be the price you requested.

At times, you will not be able to execute at your desired price, either because the price has changed before the trade was executed or the size of your trade exceeds the volume available in the market at that price currently.

What is a Margin Call?

A Margin Call is triggered when the equity in your account is equal to the margin held against your open positions and your Margin Level is 100%. This means that your positions are in danger of being liquidated at the Stop Out Level due to insufficient funds needed to hold them.

At Margin Call, our team will attempt to contact you to inform you of the option to either deposit more funds into the account to increase your Margin Level or close out a portion of your open positions to preserve your account. Although an attempt may be made to contact you of the Margin Call this may not always be the case, so it is best practice to continuously monitor your account and not to rely on a margin call notification.

What is the Stop Out Level?

This is the level at which we will start liquidate your positions.

The Stop Out Level (or Liquidation Level as is also commonly known) is set at a Margin Level of 50%. This means your account equity is now at 50% of the margin held.

Can I lose more than the funds I deposited?

Trading leveraged products means you are entering positions with much higher volumes than the amount available in your account. This offers you the unique opportunity to make more profits by investing fewer funds but you also run the risk of increased losses.

To protect your account balance from the effects of the leveraged trading and increased market volatility, our trading interface includes a risk management system that will attempt to close out your positions once your equity reaches 50% of the required margin.

This greatly decreases the risk of losing more funds than you have deposited, however this can still occur especially in cases when an account is heavily burdened with open positions and the market is highly volatile.

Do you allow phone trading?

Yes you can call our Trade desk on to place an order at any time.

Can I trade Micro lots?

Yes Micro lots are available for trading on FIXIs Standard accounts. To view the difference between the various account types, click here.

Demo Accounts

What is a demo account?

A demo account is a virtual trading account you can use to practice trading the financial markets. Trading on the demo account occurs under actual market conditions and is meant to be a simulation of a real trading account.

How can I register for a demo account?

You can register for a virtual practice account by clicking on the Open a Demo Account button available on the homepage and throughout the site. You can also register for a demo account by clicking here.

We ask that you fill out your information as accurately as possible so that we can provide you with continuous support. Once you have submitted your details, you can then proceed to download and install the platform.

How much does a demo account cost to register?

Registering for a demo account with FIXI is completely free. We want you to become completely comfortable with the financial markets with a practice account before you commit to a real account. Of course our market specialists will be with you every step of the way with trading support.

What spreads will I be trading on the demo account?

We give you the freedom of choice to select between either Standard or Pro spreads. You can choose either on the registration pop up page after you have downloaded the demo platform for the first time or when you select Open an Account from the File tab.

Does my demo account expire?

Demo accounts will expire after 30 days.

When I download the platform and login for the first time, the charts say Waiting for Update. What do I do?

This is perfectly normal for the first time you login after downloading the platform. To activate the charts, select any instrument in the Market Watch window and drag it to one of the charts. The chart for that specific instrument will then appear right away.

I can only see a few instruments in the Market Watch window. How do I add more?

To view the entire list, right click anywhere in the Market Watch window and click on Show All.

Can I trade the demo account after I have a real account?

You can trade on a demo account at anytime even after you open a real account. A demo account is always a good tool to test new trading strategies before you apply them to a real account.

What is the difference in trading between a demo account and a real one?

There is no difference in market conditions between the two accounts. You will see the same prices, spreads and market movements on both. The main difference is that a real (Live) account is trading with your own funds.


What are CFDs?

CFDs or Contracts for Difference are derivative products that allow you to trade underlying assets such as commodities, energies or indices which would normally be traded on the Futures market, on the Spot market.

How can I trade CFDs?

You can trade CFDs on the Meta Trader 4 platform. Click here to register for a demo account.

Which CFDs are on offer?

FIXI offers a wide range of CFDs. For the full list and contract specifications of the CFDs on offer, click here.

What is a CFDs trade volume?

CFDs are traded in contracts. Each CFD contract represents a quantity of the underlying asset.

For example, 1 contract of Crude Light is equivalent to 1,000 barrels.

You can trade CFDs in terms of whole or partial contracts. For the full list and contract specifications of the CFDs on offer, click here.

What is the maximum leverage level I can use to trade CFDs?

The maximum leverage level on all CFDs in 1:400. For the full list and contract specifications of the CFDs on offer, click here.

What is the margin requirement on CFDs?

The margin level on all instruments on the Meta Trader 4 will vary across asset classes per standard lot or contract.
For the full list and contract specifications of the CFDs on offer, click here.

When can I trade CFDs?

Trade timings differ across CFDs. For the full list and contract specifications of the CFDs on offer, click here.

Will I be charged Swap on overnight CFD trades?

FIXI does charge overnight financing on CFD trades. For the full list and contract specifications of the CFDs on offer, click here.

On CFD Futures, what does the letter after the CFD symbol mean?

Since CFD Futures are derivative contracts based on the Futures market, they carry some of the same characteristics which includes expiry or rollover dates. Each letter after the CFD symbol corresponds to a rollover or expiry month. Depending on the CFD, the months can be consecutive or periodic.

For example, the symbol for Crude Light with December 2014 expiry is CL.Z4. Crude Light expires monthly.

On the other hand, the symbol of Dow Jones with March 2015 expiry is DJ.H5. Index CFDs expire quarterly.

For the full list and contract specifications of the CFDs on offer, click here.

Why do CFD Futures charts on the Meta Trader 4 only go back a short period of time?

Since some CFD Futures contracts expire either monthly or quarterly, you can only go back and view the price movement history of a current CFD symbol from the time it started trading.

Why am I receiving the error message ‘The Market is Closed’ when I try to trade a CFD?

This error appears when you are attempting to trade a CFD outside of it trading hours.

For the full list and contract specifications of the CFDs on offer, click here.

Get In Touch

Our clients are important, so drop us a line.

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FIXI PLC 1 King Street, London, EC2V 8AU, United Kingdom
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+44 20 7096 7400
Institutional Sales
+44 20 7096 7410