Negative balance protection is a feature we offer to all our clients. With this, even beginners can trade with confidence. When a trading account shows negative balance from trading, the negative amount owed will be adjusted and the balance of the trading account will be reset to zero. In the case you have made a deposit, after the balance is corrected, your initial deposit will be reflected.
Gemforex works closely with several liquidity providers, including top tier banks and brokerages. We work hard to offer the best spread and trading conditions for our traders.
It is a trader’s personal responsibility in regard to paying taxes. Please feel free to check on the legislation governing your resident location or seek independent and legal advice.
Slippage occurs frequently during periods of low liquidity or high volatility, as well as during significant news events and the publication of crucial economic data. It is an inherent aspect of trading. Slippage describes situations where the executed price and your requested price are different. That is, the price “slipped.” Both positive and negative slippage are possible.
GemForex takes all essential precautions to safeguard traders from market instability, reduces the chance of negative slippage, and ensures execution at the best price.
Simply said, liquidity is the capacity to buy and sell an asset, and it is regarded as favorable when a large number of market participants are interested in doing so at any volume. Liquidity is improved by how simple it is to acquire or sell the instrument at any given volume.
Since market players compete to receive the best pricing, the spread is typically tighter the more liquid an instrument is. Because there is less demand for the instrument, spreads may be greater and price is typically more volatile when there is little liquidity.
In essence, swap rates are the difference in interest rates between the two currencies in the trading pair. Interest rollover fees are a component of forex trading since currency exchanges entail borrowing one currency to buy another. Interest is paid on the borrowed currency and earned on the purchased currency. The daily cost is deducted from the client’s funds when the swap rate is negative, and when it is positive, the amount is credited to the client’s account. Swap procedures are carried out on daily working days at midnight and can take several minutes,and the amount is being charged or applied to your account. In order to cover the weekend, Swaps are billed for three days on Fridays.
Note that GemForex reserves the right to review and update the Swap rates per symbol on a frequent basis.
The up-to-date swap lists can be viewed at any time on our website in the instrument specifications or via the trading terminals.
Stop Out level is when your Margin level falls to a specific percentage level in which trade positions are forcibly closed, or ‘liquidated’. Margin level (%) is displayed on the trading platform and is calculated as follows: Equity / Margin X 100.
GemForex offers Negative Balance Protection (subject to the GemForex Order Execution Policy) to ensure that clients cannot lose more than their overall investment. The stop out level is 20% for all account types.
Stop out describes the execution of a stop-loss order. When a client has reached his Stop Out level or does not have enough equity to support the open trade, it is a signal to forcefully close a position at the current market price.
A ‘Take Profit’ order is intended to lock in profits at a specific price, or to potentially prevent additional losses following a significant gain. Alternatively, you can modify a position and add a take profit at a later date. It can be added to an order at the time of opening. It could likewise be joined to a Pending Order.
On Buy positions, a Take Profit must be positioned above the current market price; on Sell positions, it must be positioned below the current market price. All “Limit” orders, including Take Profit, are carried out using “Limit Execution,” ensuring that you get the price you asked for. Therefore, it is impossible to get a worse price on a “Limit” order like Take Profit. Once the “BID” price hits your take profit level, take profits on long bets will be triggered for execution. Short positions will execute take profits when the “ASK” price reaches your take profit level.
With a “Stop Loss” order, losses can be contained or, theoretically, a profit could be realized after a loss.
You can add a stop loss to an order when it is opened, or you can adjust an existing position and do so at a later date. It could likewise be joined to a Pending Order. On buy positions, a stop loss must be set below the current market price; on sell positions, a stop loss must be set above the current market price.
Market execution is the method used to execute all stop orders, including stop losses, so that when an order is triggered, it is filled at the price that is currently being offered in the market. This indicates that you can have “Negative Slippage,” which is when your price is far lower than your stated stop level, especially during periods of strong volatility.
A ‘Market Order’ is the definition of of wanting to enter the market at the current market price, regardless of where it may be. It executes instantly when the client opens the trade.
At GemForex all orders, including Forex pairs, are executed via the Market Execution method. It is a method of order execution that carries out orders in a couple of milliseconds at the best price on the market. The resultant implemented price may still be greater or lower than the requested price due to the frequent price change, resulting in a negative or positive price slippage for the client. This execution technique has the advantage of being the fastest one available and giving traders full market access without requotes.
As pending orders that tell a broker to open or terminate a position when an asset’s price reaches a specific level, limit and stop orders are frequently mistaken with one another.
Buy limit orders state that a position should be taken when the market price drops below the level at which it is currently trading. Sell limit orders state that a position should be taken when the market price reaches a level above the price at which the order is being filled. In contrast, sell stops are put below the current market price and purchase stops are entered above it.
Bear in mind that pending Limit orders are executed with ‘Limit Execution’, meaning you will receive your requested price or better, whereas Stop orders are executed with ‘Market Execution’.
A ‘Market order’ is an immediate order to ‘buy’ or ‘sell’ at the current price in the market. Depending on the market volatility and liquidity, this means that market orders can receive fills that are better, worse, or at the price requested. This type of execution also applies to all stop orders (stop loss, buy stop, sell stop, stop out).
Although most platforms use ‘market execution’ as default for the opening of orders, we do also have an MT4 Instant Execution account option, as well as an MT4 Fixed spread account with instant execution. An ‘Instant Order’ is an order to ‘buy’ or ‘sell’ at the requested price, and if this is not available, a requote will occur (offer of a new price, which can be accepted or declined).
We offer MT4 & MT5 accounts with Market execution, and MT4 and MT5 Raw & Elite accounts with Instant execution. Please note that for pending orders the execution is the same regardless of account type (i.e. all stop orders are executed with ‘market execution’ and all limit orders are executed with ‘limit execution’).
All our clients’ trades are executed with superior conditions:
At GemForex all orders are executed via the Market Execution method. Market Execution is an execution process method by which orders are executed at the best available market price in a matter of milliseconds. Due to the frequent fluctuation of prices, the resulted executed price may still be higher or lower than the requested price resulting in a negative or positive price slippage for the client.
The benefit of this execution method is that it is the fastest one accessible and offers traders complete market access without requotes.
As part of our internal risk management policy, our internal order flow and exposure is managed up to our risk limits; any excess exposure may be hedged externally.
The difference between the Bid and Ask prices is the ‘Spread’, which is what you pay to the broker in return for placing the order through them.
Spreads at GemForex are floating, view the real-time spreads from your trading platform. The average spreads indicated in the above table are calculated throughout the day to represent the average daily spread for each symbol. Despite our best efforts to offer reasonable spreads during all trading hours, clients should be aware that these are subject to change depending on underlying market conditions. The above is provided for indicative purposes only, spreads may widen as a result of important news announcements, political uncertainty, unexpected events that can lead to volatile market conditions, or at the open/close of the business day when there is less liquidity.
Leverage is simply the use of borrowed funds to open a larger deal, which magnifies the possible gains and losses. With a minimal initial investment, it enables traders to take on higher position sizes.
For instance, a trader can open a position 100 times the size of their margin on a trading account with a leverage of 1:100.
This will have the knock-on effect of subjecting any gains or losses to the same 100-fold multiplication.
“Contract for difference,” or “CFD,” refers to an agreement (contract) to exchange the difference in value of an underlying asset between the times the contract is opened and closed. If the difference is negative, the buyer is required to pay the seller the difference. If the difference is positive, the seller is required to provide the buyer the difference. When trading CFDs, investors purchase (go long) when they anticipate an increase in value and sell (go short) when they anticipate a decline.
As an example: if you buy a ‘CFD’ at $100 and sell at $120 then you will receive the $20 difference. If you buy a ‘CFD’ at $100 and sell at $80 then you pay the $20 difference.
In essence, a CFD contract means that you are not physically purchasing the underlying asset (currency pair, commodity, share, index, crypto), but rather, you are exposed to the underlying instrument’s price movement through the CFD.
