Forex

For Forex Trading the margin is calculated in accordance with your account leverage. This is how it works: Margin = Lots x Contract Size / Leverage Margin is always calculated in the base currency, therefore the result needs to be converted to your account's currency. Example: 3 Lots of EURUSD, USD based account with leverage of 1:500, EURUSD rate: 1.08 >>> 3 x 100,000 (EUR) / 500 = 600 EUR --> 648 USD

No margin will be held for fully hedged positions. For partially hedged positions there will be a margin requirement only for the part of the trade that it is not Hedged. For example, in a case where a trader has 5 Lots buy EURUSD and 2 Lots sell EURUSD, then a margin requirement will be required for the 3 Lots that are not hedged. Please be aware that your positions may still be stopped-out even when you are fully hedge. This could occur for many reason i.e. widening of the Spreads or Swap charges resulting to a negative Equity.

At GemForex most instruments, including all Forex pairs, apply Swap in points in the quoted currency of the pair you are trading. A "point" is essentially the last digit of the instrument. Below is an example on how a debit or credit to your account is calculated. Calculation FX: Lots * Contract Size * Swap rate (long or short). As points are expressed in the quoted currency (in the below case JPY), the result needs to be converted to the account's currency. Scenario FX: Long (Buy) 10 Lot USDJPY. Long Swap rate is +2 points. USDJPY rate 130.500. The account's base currency is USD. 10 x 100,000 x 0.002 = 2,000 JPY --> 15.33 USD

Yes it will. Whether you decrease your Leverage from the client area, and thus increasing your margin requirement, or whether the company increases the margin requirements of an asset for any particular reason, this will have an immediate affect to you account's used margin. In a scenario were the company increases the margin requirements for a particular asset, the company will do its best to inform its clients in a timely manner so that the clients have enough time to take actions such us deposit funds or close out trades, in order to avoid a possible liquidation.

At GemForex all orders, including Forex pairs, 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.

New or experienced at GemForex we strongly advice our traders to use a 'stop-loss' while trading. Arguably the most popular tool for reducing risk, adding a stop-loss to your orders are designed to limit loss on a position that’s made an unfavourable move. When you place a stop-loss order, you’re requesting to close the position once the instrument reaches a certain price. This is helpful as it means your trades need less monitoring and can help to limit losses, particularly in volatile markets. Please note however that a stop loss is by no means a guarantee, positions may be affected by price gaps over market closures, data release or other economic factors.