TRADING CONDITIONS

No, there are no restrictions. Scalping is permitted.

One lot is equivalent to 100,000 units of the base currency. 0.1 lots is thus equivalent to 10,000 units and 0.01 lots is equivalent to 1,000.

The base currency refers to the first currency in a currency pair. In EUR/USD for example, the base currency is EUR. 1 lot of this currency pair is thus 100,000 EUR.

Visit our Contract Specifications page for information on margin requirements, spreads, trading instruments, etc.

If you are trading on a standard.mt4 account, FXTM will not charge you any commission; you will only be charged the cost of the spread. If however you are trading on an ecn.mt4 or ecn.mt5 account, you will be charged commission. You can contact us for more information.

Yes, you will be able to change the leverage on your account. All you have to do is log in to your MyFXTM and on the Trader's Desktop, click on the "Change Leverage" icon. Please note that in order to change leverage you must first close any open positions you have on your trading account.

The default leverage will always be the maximum available for that particular account type, please check the Trading Terms page for more information.

Every currency in the world has an abbreviation which is used when trading currencies on the forex market. Here are some of the abbreviations for the market's most commonly traded currencies:

• USD - US Dollar
• EUR - Euro
• GBP - British Pound
• CHF - Swiss Franc
• JPY - Japanese Yen
• CAD - Canadian Dollar
• AUD - Australian Dollar
• NZD - New Zealand Dollar

Forex trading encompasses its own set of specialized terms that all traders should become familiar with before beginning to trade.

Some of the most essential trading terms are the following:

All currencies are traded in pairs. Within the pair, the first currency we can see is called the 'Base' currency and the second currency we can see is called the 'Quote' or 'Term' currency.

Base Currency (USD) / Quote Currency (JPY) = Rate 80.40

In the above example, the rate shown is the amount that one would have to pay in the quote currency in return for one unit of the base currency. In this example, one would have to pay 80.40 JPY in return for 1.00 USD.

A Pip stands for percentage in point and it is the smallest measure of change in an exchange rate.

Most currency pairs are quoted to the fourth decimal point, so if there is a change from 0.0001 to 0.0002, this would be a one pip change. Exceptions to the four decimal point norm are the USD/JPY, CHF/JPY, EUR/JPY and GBP/JPY. These currency pairs are quoted to the second decimal point, so one pip in these cases would be a change from 0.01 to 0.02. Please note that FXTM may quote currency pairs to an additional digit in order to give traders a more detailed insight to the market.

Sometimes, quotes may be shortened to be represented by the last two digits only. If EUR/USD is traded at 1.2281/1.2285 for example, it may be displayed as 81/85.

In forex, we have a Bid Price and an Ask Price. The Bid Price represents the rate used to buy the quote currency and sell the base currency whereas the Ask Price represents the rate used to sell the quote currency and buy the base currency.

The term Spread is used for the figure you get when you calculate the difference between the Bid Price and the Ask Price.

The term Currency Rate is used to determine the value of one currency in relation to another.
Currency rates fluctuate according to various factors such as liquidity, political and economic indicators, international employment levels, the gross domestic product (GDP) of different countries and a number of other factors.

Lots are used to measure the size of a transaction. 1 lot is equivalent to 100,000 of the base currency of a pair, one mini lot to 10,000 units and one micro lot to 1,000 units.

Leverage is what is used to magnify a trader's buying power. It allows a trader to deposit a small amount of money and still be able to trade larger volumes. For example a trader could deposit €100 and if the leverage is 1:500, they would be allowed to trade €50,000.

To see what trading instruments are offered for our different accounts, please visit our Contract Specifications page.

Swap refers to the change in interest rates when a position is carried forward overnight. It can be both positive and negative; this varies according to the interest rates.

It is calculated between Monday and Thursday, at 23.59.45 -23.59.59. Seeing as the interest is measured over 7 days but the forex markets only operate for 5 days, swap on Wednesdays is measured in triple size so that any position opened on a Wednesday prior to 23.59.45 and closed on Thursday will be measured as 3 nights.

Margin call/stop out is when the margin level of your account reaches or falls below a specified amount and your trades are automatically closed. This should prevent your account from falling into a negative balance. With Forex Time (FXTM) margin call /stop out for a standard.MT4 account is 20% and for ECN.MT4 and MT5 accounts it is 60%.

Trading Hours	Open GMT	Close GMT
Asian	22:00	06:00
European	08:00	16:00
US	14:30	21:00

The leverage offered for spot metals is 1:200 and it is a floating leverage.

We offer floating spreads, so depending on what prices we receive from our providers, our spreads may increase under certain market conditions.

Yes, you can, however this depends on the account type you have. Please see our Trading Terms for further information.