Trading Parameters

Changes in Trade

In its continuous mission to enhance your trading experience, XForex has recently expanded its trading endeavors by adding Commodities and Indices trading via CFDs and now Shares trading and Bitcoin. Our trading conditions have changed accordingly with leverage and margin features now available per symbol. This brings great advantage to your trading experience as:
  • New Instruments
    You can now trade with new Instruments with access to the Shares market, the future market and even the virtual market.
  • Protection
    Your account protection has increased, as the new system monitoring your risk factors per symbol, thereby helping to prevent your account from being calibrated.
  • Better risk management:
    With the Margin calculations, and Maintenance Margin per symbol with specific parameters per symbol – risk calculations are per positions are increasingly accurate and protect your per symbol trading as well as your entire account.
Leverage

Leverage allows you to trade with amounts much higher than your initial investment amount, which increases the potential return of your investment. Although the ability to earn significant profits by using leverage is substantial, leverage can also work against you if the market goes in the direction opposite of your trade. Traders normally use Stop Loss & Take Profit to avoid such scenarios. So far, the leverage offered was assigned to your entire equity.

Example

Your deposit amount: $1,000
Equity: $1,000
Leveraged offered: 1:400
Your Leveraged amount is: 1,000 x 400 = $400,000

Leverage per Symbol

Leverage in the share market tends to be much lower than in the forex market. Therefore, as we enter this market, leverage will now be offered per symbol. This means that each position will be leveraged according to the leverage assigned to the specific symbol in which you choose to open a position.

Available Balance

Having leverage per symbol also allows you to closely monitor the real value of your trades. Each time you open a position, the real value of your investment in this position [non leveraged amount according to the leverage per symbol] is deducted from your Available Balance. This means that you may now view the remaining Available Balance of your equity in real time and in non-leveraged values (available for trading).

Equity - used Margin

Example

Your deposit amount: $1,000
Leverage for Twitter: 1:20
You open a Twitter position for: $5,000
Your Available Balance: $1000 – [$5,000: 20] = $750

Margin

The margin parameter shows you the ratio between your equity and your net exposure (the sum of all open positions converted into the account base currency). Once your margin exceeds the allowed limit, your account is at risk of calibration and ALL of your positions or part of your trades are automatically closed. For this reason, your margin is monitored in real time.

Equity 
--------------------x 100
Exposure 

Example

Your deposit amount: $1,000
You open a Twitter position for: $5,000
Equity: $1,000
Your Available Balance: $750
Net Exposure: $5,000
Margin: (1000: 5,000) x 100 = 20%

Margin per Symbol

As we enter the share market with leverage per symbol, the margin applied is also being offered per symbol. Each symbol will now receive its own margin limits according to the risk factor it represents and according to the leverage applied. This is in addition to the entire account margin [mentioned above] which will continue to operate as an indicator for your account status. In order to help monitor your Margin per Symbol, a monitoring system has been placed to monitor your Margin per Symbol; the Maintenance Margin System.

Example

Google Margin: 0.3%
Price per Share: $1,228
Position opened: 10 Google Shares
Maintenance Margin: 0.3% x 1,228 x 10 [Margin x Exposure] = $36.8

Maintenance Margin System

The Maintenance Margin is an automatic system set to protect your account investments, and prevent your entire account from being calibrated by maintaining your margin levels per symbol. The Maintenance Margin will display the relative sum of all margins and is calculated each time a position is opened. By observing your equity and Maintenance Margin values you can monitor your distance from margin call status.

Example

You open first a Google position - Your M. M. will be $36.8.
Then you open a 2nd position for Twitter - Your Twitter M. Margin is $123.4, but will not display.
The display will be of the relative sum.

Maintenance Margin:        $160.2 = [123.4 +36.8]

Margin Call

Once the sum of positions from a particular symbol, in a particular market direction, hits the risk margin for that symbol, positions from that symbol will automatically begin to close until a sufficient margin is restored. Positions will begin to close until a sufficient margin for that symbol is achieved; thereby increasing protection of other positions as well as the account’s entire margin. The action of closing position per symbol is called Margin Call.

Example

Maintenance Margin:        $160.2 = [123.4 +36.8]
If your equity is less than $160.2, then either your Google or Twitter positions will close (the position with the biggest loss will close).

Equity

The current real amount in the account, calculated by this formula: (Total Account Deposits) minus (Total Account Withdraws) plus (Closed Profit and Loss) plus (Open Profit and Loss) plus Bonus, converted into the Account Base Currency.

Deposits – Withdraws + Closed P&L+ Open P&L+ Bonus

Open P&L

Open P & L: Total Profit and Loss of all open positions (Plus Interest Charges) converted into the Account Base Currency.

Net Exposure

Net Exposure: The sum of all open positions converted into the Account Base Currency.

Pending Bonus

Pending Bonus: Displays the Bonus amount that will be transferred into the Equity, provided that you exceed the "Volume to Reach" within the set period.

Volume to Reach

Volume to Reach: Presents the Volume you need to reach within the set period in order to have the pending Bonus transferred into the Equity.