FREQUENTLY ASKED QUESTIONS

Margin is the required amount in the base currency of the trading account needed to open or maintain a position. When trading forex, the Required/Used Margin for a specific position = Number of Lots * Contract size / Leverage. Here the result is originally calculated in the first currency of the traded pair, and then converted into the base currency of your trading account, which will be numerically displayed on your MT4, or any other trading platform. The margin requirement for gold and silver is calculated like this: Lots * Contract Size * Market Price / Leverage. The result will be in USD, which will be converted into the base currency of your trading account (in case it is other than USD).

Margin Call occurs when your equity reaches 100% of your used margin. The used margin is not deducted from your balance or equity, but it simply gets displayed in the Terminal window, where the main purpose of displaying the margin is for margin level calculation: Margin Level = (Equity / Used Margin) * 100%. The actual margin call is simply a notification (received by email on the Mt4 Terminal window) that your account is approaching dangerous levels. Stop out occurs when your equity drops to or below 50% of your used margin. At that point, the system will start closing your trades one by one, starting from the most losing one, in order to decrease the used margin, and by doing so, increase the margin level, attempting to push it above 50%. The calculation formula is this: (Equity/Margin) *100%.

Margin calculation formula for forex instruments is the following: (Lots * contract size / leverage) where the result is at always in the primary currency of the symbol. For STANDARD accounts, all forex instruments have a contract size of 100 000 units. For instance, if the base currency for your trading account is USD, your leverage is 1:100 and you are trading 1 lot EURUSD, the margin will be calculated like this: (1 * 100 000/100) = 1000 Euros. Euro is the primary currency of the symbol EURUSD, and because your account is USD, the system automatically converts the 1000 EUROS to USD at the actual rate.

The gold/silver margin formula is lots * contract size * market price/ leverage.

Stop loss is an order for closing a previously opened position at a price less profitable for the client than the price at the time of placing the order. Stop loss is a limit point that you set to your order. Once this limit point is reached, your order will be closed. Please note that you need to leave certain distances from the current market price when you set up stop/limit orders. Using stop loss is useful if you want to minimize your losses when the market goes against you. Stop loss points are always set below the current ASK price on “buy” or above the current BID price on “sell”.

Trailing stop is a type of stop loss order. It is set at a percentage level either below the market price for long positions, or above the market price for short positions. Kindly note that you need to leave certain distances from the current market price when you set up stop/limit orders.

Leverage is the multiplication of your balance. This allows you to open bigger trading positions since the margin required will be lowered according to the leverage you have chosen. Even though with leverage you can make a bigger profit, there is also a risk of having a bigger loss because the positions you open will be of higher volume (lot size). For example, if your trading capital is 10,000 USD and the leverage chosen is 100:1, then for a STANDARD trading account this means you are trading a total of 100*10,000 = 1,000,000 USD. So say if you have a EURUSD long position opening at 1.3055 and position closing at 1.3155. The difference is 0.0100 pips and thus your earning will be 1,000,000*0.0100 = 10,000 USD. This is the profit you made.

No, we don’t. Open positions and pending orders stay in the system even if you log off from your trading platform. The same applies to all order types except trailing stops. Trailing stops become inactive when you close or log out of MetaTrader4. Expert advisors also become inactive when MetaTrader4 is closed, or you are not logged in.

There is no maximum amount you can trade online, but there is a maximum number of 10 standard lots you can trade online at streaming prices for STANDARD accounts. If you want to deal in an amount bigger than your account type’s maximum lots, you may break your trade into smaller sizes.

Slippages are seldom occurrences with JDFX. Sometimes, however, especially when important economic news is released, due to a sharp rise/fall in the market price, your order may be filled at a different rate than you requested. At JDFX, your orders are filled at the best available market price, which may be to your benefit.

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

When placing a trade in the spot forex market, the actual value date is two days forward, for instance, a deal done on Thursday is for value Monday, a deal done on Friday is for value Tuesday, and so on. On Wednesday, the rollover amount is tripled to compensate for the following weekend (during which time rollover is not charged because trading is stopped at weekends). This may change with the addition of “Swap-free Accounts”.

First check if trading is allowed by going to Tools -> Options -> Experts tab -> Allow real trading. Then make sure that the expert advisor button on the main tool bar is pressed. You should be able to see a smiley face in the top right-hand corner of your chart which shows that you have activated your EA correctly. If everything is all right, but the EA still does not trade, see your log files via the Experts tab in the Terminal window (you should be able to see what error occurs).

Take profit is an order to close a previously opened position at a price more profitable for the client than the price at the time of placing the order. When the take profit is reached, the order will be closed. Please note that you need to leave certain distances from the current market price when you set up stop/limit orders.