FX
Trading Station "Advanced
Dealing Rates Window"
Live quotes for 18 currency pairs appear in the
forex trading system "Dealing Rates window".
Traders are able to execute trades directly from
the displayed quotes. The prices on the FX Trading
Station are not indications of where the market
is trading, but actual prices at which a trader
can buy or sell the currency pair. To place a
market order, the trader clicks with the left
mouse button on desired rate.
Currency
Each currency quote box in the "Dealing Rates"
window contains information about a specific currency
pair, as defined by the currency pair abbreviations
at the top of the box. For example, "EUR/USD"
represents the Euro/U.S. Dollar. The first currency
in the pair is referred to as the base currency;
the second currency in the pair is the counter
or quote currency.
The price you see for each currency pair is the
exchange rate for that pair. The exchange rate
refers to the amount of the quote (second) currency
that can be exchanged for one unit of the base
(first) currency. For instance, if the exchange
rate for the EUR/USD is 1.2192, then $1.2194 can
be exchanged for 1 Euro.
Sell And Buy
Each currency quote box contains an executable
sell price and an executable buy price. It is
useful to think of the base currency as the basis
for the buy and sell. By clicking on the "Buy"
price, you will execute a trade in which you will
buy the currency pair (buy the base currency and
sell the counter currency). By clicking on the
"Sell" price, you will execute a trade
in which you will sell the currency pair (sell
the base currency and buy the counter currency).
For example, clicking on the "Buy" price
of the EUR/USD will open a long position, where
the trader is buying EUR and selling USD. When
buying a currency pair, the trader expects the
exchange rate to move higher. The rate on the
"Buy" side of the currency quote box
(1.2195 in the example on the right) is the rate
at which a trade can be rapidly executed to
buy the pair. The rate on the "Sell"
side of the currency quote box (1.2192 in the
example on the left) is the rate at which a long
position can be rapidly* closed.
When executing a "Sell" order, the trader
expects the exchange rate to go down. For example,
a trader executing a "Sell" EUR/USD
at 1.2192 would like the exchange rate to move
lower. The rate on the "Sell" side of
the currency quote box (1.2192 in the example
on the left) is the rate at which a trade can
be rapidly executed to sell the pair. The
rate on the "Buy" side of the currency
quote box (1.2195in the example on the right)
is the rate at which a short position can be rapidly
closed.
The "Sell" and "Buy" exchange
rates move in tandem. When the current exchange
rate is lower than the exchange rate that preceded
it, the numbers are red. When the exchange rate
has moved higher than the previous rate, the exchange
rates turn blue.
High And Low
The following columns
are titled "high offer (buy)," and "low
ask (sell)". The high is the highest bid
rate since 5:00pm EST of the previous day. The
low is the lowest the offer rate has touched since
5:00pm EST of the previous day.
FX
Trading Station "Simple
Dealing Rates Window"
The "Simple Dealing Rates" window
allows users to view a little more detailed
data for each currency pair. To view the "Simple
Dealing Rates" window, simply click on
"Action" , choose "Look and Feel"
and select "Simple" from the top menu
bar.
Sell
This is the SELL (bid) price; meaning the price
where you can sell the currency pair.
This price is dynamic and will fluctuate tick
by tick with the slightest market move.
Buy
This is the BUY (ask) price; meaning the price
where you can buy the currency pair.
This price is dynamic and will fluctuate tick
by tick with the slightest market move.
The high is the highest bid rate since 5:00pm
EST of the previous day.
Low
The low is the lowest the offer rate has touched
since 5:00pm EST of the previous day.
IntrS and IntrB
This stands for Interest Rate Buy and Interest
Rate Sell. This is the amount in dollars per
lot that you will pay/receive for positions
that are rolled over. At 5:00 PM ET, all open
positions are automatically rolled over to the
next settlement date. If a trader has no open
positions at 5:00 PM ET, even if the trader
executed transactions during the previous 24
hours, there will be no rollover of positions.
A rollover of positions results in interest
being credited to or debited from the trader's
account.
The rollover interest changes from day to day
for each currency pair depending on market conditions.
At 3:00 PM ET, the rollover amounts are posted
for each currency pair. Under the "IntrB"
column, the amount in U.S. dollars per 1 lot
buy position is provided. If there is a minus
sign next to the number, the amount will be
subtracted.
Under the "IntrS" column, the amount
in U.S. dollars per 1 lot sell position is provided.
If there is a minus sign next to the number,
the amount will be subtracted. Please be aware
that your account must be set to 2% margin or
higher in order to earn interest on positions
held past 5:00 PM ET.
Pip Cost
The pip cost gives you the pip value for each
currency in real time. On the standard account
the approximate pip value is $10 per pip and
on the Mini account the pip value is approximately
$1 per pip. All of the currency pairs where
the USD is not the base currency i.e. EUR/USD,
AUD/USD, GBP/USD, NZD/USD will have a fixed
pip value of $10/$1 per pip. All other currency
pairs have a fluctuating pip value.
MMR
The amount reflected in this column indicates
the margin required to open a one lot position.
Each client has the ability to select the degree
of leverage they wish to use. If the margin
requirement is set at 1% then the margin required
to open a one lot position is $1000. If the
margin requirement is set at 2% then the margin
required to open a one lot position is $2000.
Time
Every time an exchange rate changes, a time
stamp is placed next to the currency pair. The
time is recorded in Eastern Standard Time. A
time stamp of 14:00 would mean the last update
occurred at 2:00 PM Eastern Time.
Highlighting
In the "Dealing Rates" window, one
row will always be highlighted. The highlighted
currency pair is the default currency pair,
meaning that it is automatically selected when
placing market or entry orders. To change the
highlighted currency, click on the gray box
directly left of the currency pair.
