We recommend that you carry out operations on the demo account in the currencies and in the amounts; you are going to trade with on your real account. E.g., if you are going to transfer deposits to your real TradeRoom trading account from your bank account, then try first to make the operation virtually. Try to place a payment order to transfer the funds from your virtual account to your bank account. You’ll see the bank fee then. Try also do currency conversion to see how it works, and how much the spread is because all the operations on your real account will be the same.
There are two ways of making deals in TradeRoom:
- By a quote request with a further buying or selling of a currency.
- By placement of Stop or Limit orders.
Here TradeRoom distinguishes two types of deals: Forex deals and Conversion. The deals of both types are executed in the same way, both on the "Trading" page.
The "Trading" page contains the detailed information about the account state: open positions, current balances, and account status. You cannot only view the information but also manage the account: open, change and close positions, convert balances, and control orders. There is also some extra information: quotes charts and Forex news for decision-making while trading.
Let’s consider the page in more details.
The page has six tabs.
- The "Open Positions" tab allows you to monitor the existing open positions for Forex trades, the average rate of their opening, the profit for each position, and the rates of the tied orders.
- The "Currency Balances" tab provides the information on the balances in all currencies available in the account. It also shows the current value of your asset.
- The "State of Account" shows the main parameters of your account.
- The "Orders" tab allows for orders controlling: create, edit, and cancell them.
- The "Charts" tab allows you to see a chart of the changes in the market rate for the selected tool.
- The "News" tab provides Forex news issued by Forexite and FxWire Pro.
There is a "Refresh" button next to the tabs. It is used to manually update the data if you have disabled the automatic updating in your TradeRoom settings. The automatic update is enabled by default (after the account registration). For more details see "Changing system parameters".
Forex trading is a margin trading on the Forex market in the amount from 1 to 5 000 000 USD (the amounts can be changed according to the Trading conditions). The peculiarity of the Forex trades is that when you make a deal, you open a position. The position is open until you close it by making a reverse trade. E.g., for closing the position which was opened by selling it is necessary to make a buying deal. The position can also be automatically closed by the trading system. This happens if your free funds are insufficient to support your open positions. The system automatically transfers your open positions on Forex deals the next value date with rollovers at the end of the day. For the detailed information see the article on our web-site "Roll-over of open position" (in Russian).
1. Making Forex deals
Let's see how the Forex deals are made from the "Trading" page. To make a deal, open the "Open Positions" tab. To open a new position, click the left mouse button on the line with the instrument you are interested in. A context menu will appear in which you have to select the "Trade" item. Then the trade execution controls appear at the bottom of the page.
1) The exchange rates both on the "Trading" page and in the trade execution form are updated automatically. When the rate goes down, a red indicator ▼ appears near to the quote, while when it goes up, there is a blue one ▲. The rate value is displayed in the same appropriate color.
2) If the instrument you need is not listed in the "Open positions" tab, make sure you have the "On selected instruments" display mode selected, and the right instrument is enabled in the trading settings.
Let's consider the trade execution form in details.
It contains the items as follows:
- A field with a currency pair the quote is displayed for.
- A field to enter the trade amount (by default it contains the value you have entered before or one of the standard sums). If you want to open a position with another sum, just change it in the field or use the standard amounts list which appears when you click on the row. You can adjust the standard amounts list in the trading preferences as you wish. E.g.:
- A field with the trading currency. If you want to change it, click on ▲, and a menu, in which you can select another currency, will appear.
- Selling rate and the "Sell" button.
- Buying rate and the "Buy" button.
- Point price for the trade.
After you set the amount of the deal just click on "Buy" or "Sell". In this case if the "Request trade confirmation" option is enabled in the trading preferences, TradeRoom will request a confirmation, whether you really want to execute the trade. The Forex trade will be executed only after your affirmative answer.
If you do not want the confirmation to be requested in future, then mark the "Do not display this prompt for Forex trade" option.
After you have placed a Forex trade, you will see the information about the open position in the table.
The data in the "Open Positions" tab can be displayed in three modes:
- The "For selected instruments" mode (enabled by default) is used to display all the instruments available to be traded with according to your trading preferences. The mode allows you to see the changes in the rates even for the instruments you do not have the open positions for.
- The "Only open positions" mode is used to display only the instruments the positions are open for.
- The "For all instruments" mode shows all instruments you can open a position for.
To switch between the modes in the tab use the ▼ marker.
2. Trading styles
The TradeRoom system allows trading in one of two styles:
- TradeRoom Classic.
You can easily switch between the trading styles in your TradeRoom preferences as well as specify your own settings.
The "TradeRoom Classic" style: all deals for an instrument are joined into an open position. It means that any new deal changes the size of the existing position (even up to its closing).
Let’s show by an example how it works.
Let you open a EUR/USD position by buying 200 000 EUR. Suppose you want to open one more position by selling 100 000 EUR. After executing the second trade the system automatically consolidates the new position with that already open for EUR/USD. The system will inform you about it with the following message "The open position in EUR/USD has changed from -200 000.00 to -300 000.00 EUR". In this case TradeRoom will also modify the average rate of the open position: it will be re-calculated with regard to the volume of the sum added and the current rate.
If you want to open an opposite position by buying 77 000 EUR, after the trade "Buy 77.000 EUR" is executed, your position will be reduced by 77.000 Euros. The system displays the message: "The open position in EUR/USD has changed from -200 000.00 to -123 000.00 EUR". Note that when the size of the position decreases, its average rate is not changed.
The "Advanced" style allows to consider each deal separately.
Let’s go on with the same example.
By sale of 200 000 EUR you have opened a position for EUR/USD. Now you make one more deal by selling 100 000 EUR. At the "Advanced" style, a total open position which is -300 000 EUR, for EUR/USD will be shown in the "Open Positions" tab. Below (under the "Open deals" title) there will be two sell deals, 200 000 EUR and 100 000 EUR.
The "Advanced" style allows opening multiple deals, in opposite directions as well; closing the selected deals; hedging a deal with the opposite deals not closing it, i.e. without fixing the received profit or loss.
3. Closing deals and positions
You can quickly close out a position or a deal in the "Open Positions" tab.
When in the "TradeRoom Classic" style, you can close only a position for the instrument selected. To do this, just click on the X icon at the end of the line next to the open position. A quote, which it can be closed at, will appear after you click on either "Sell" or "Buy".
E.g., if the position has been opened by buying 200 000 GBP, you should execute a trade to sell 200 000 GBP in order to close it (as shown below).
In the "Advanced" style, you can close both the positions and the selected deals.
To close a position, click on the icon X at the end of the line of the open position. When the position is closed, all open deals will be closed as well.
To close a deal, click on Х at the end of the line near the deal.
There is one more way to close an open position (or a deal). Left-click on the line with the position (deal) you want to close. A context menu will appear, in which select the "Close" item. Then you will get the quote to close the position.
Conversion deals are the operations of exchange of one currency for another. The amount of a trade can be from 1 to 100 000 USD (the amounts can be changed according to the trading conditions). The peculiarities are:
- spread for conversion deals is bigger than for those of Forex;
- for conversion deals, the currency interest rates difference is charged with a daily account balance interest;
- a conversion deal does not open a position, that’s why, unlike a Forex trade, you do not have to make a reverse trade for conversion.
To execute the conversion deals, use the "Currency Balances" tab on the "Trading" page which contains the data about all currency balances on your account. The balances can be caused by various factors, such as the presence of open positions, execution of conversion deals, profit or loss resulted from the position close, the account depositing, or the funds withdrawal.
If there are no open positions on the account and the incoming funds have been in US dollars only, you will see only one row, corresponding to USD, in the table of the balances. To convert USD into another currency, left-click on the row and select "Convert to" in the menu appeared. A submenu with a list of the currencies available will appear. After you select a currency, you will see the trade execution form already familiar to you.
Enter the amount you want to convert and press a "Sell" or a "Buy" button. As a result, a new row corresponding to the converted currency, will appear in the table of the balances (in this case it is CZK, see figure below).
You can use the X marker in the right part of the row to convert a currency into USD. After you click on the marker, the system will provide you with the quote, so the only thing for you to do will be to press the button to execute the deal.
Note that if there is an open position for some instrument on the account, a full conversion of the balance of the appropriate currency will not be available. In this case the color of the marker next to the balance will be greyed out.
For a partial conversion, use the "Convert to" command from the context menu, as described above.
1) Like the Forex trades, in case you have the "Confirm trade" option enabled in the trading preferences, the system will request a confirmation, whether you really want to make the conversion. The conversion deal will be executed only after your affirmative answer to the request.
2) By default, the TradeRoom system configured to automatically convert all the balances into USD. So, if you do not want the currency you have bought, to be automatically converted back into USD at the end of the trading day, you have to disable the conversion of the given currency in the TradeRoom preferences. For more details about the automatic conversion read in the "Some system settings" section.
Account state monitoring
The "State of Account" tab displays the main figures of your account.
Let us briefly explain some of the figures stated here (you can find a more detailed description of all figures in the Forexite TradeRoom online help).
- "Current Equity" shows the sum of the current balances of all currencies converted into USD.
- "Free Equity" is the part of the assets not involved into support of the open positions.
- "Current Leverage" shows the ratio of the total open position to the current assets.
- "Maximum Leverage" shows the limit value of the current leverage. If the current leverage becomes equal to or exceeds the maximum one, the system will close all open positions and convert the balances into USD.
- "Current Total Open Position" is a cumulative open position for all instruments expressed in USD.
- "Available Open Position" is the difference between the maximum allowed open position and the current total one. The positive value shows the size of the position you can open additionally. The negative one means the excess of the current total open position over the maximum one. In this case you are recommended to reduce the position, but you are not obliged to do it.
When working with the tab you should be aware that it displays the amounts with two decimal places precision. It's been made not to fuss up the tab. However, the calculations are made to a much higher precision.
The system preferences (item "TradeRoom" in group "Preferences") have an option which makes it possible to further simplify the display of the amount.
So, when the "Hide zero fraction for round amounts" option is enabled, all amounts will be shown with no fraction. It is convenient in some cases.
The tab "News" allows you to view the current Forex news issued by Forexite and FxWire Pro.
By default, the top of the list is the latest news. The list contains as much news as fit the page. If you want to read older news, just click on the "Show older news" hyperlink, which is under the news list.
To view the full text of the news, click on the news row for a window with the full text to appear.
The full text of the news FxWire Pro company is available for the active (with a positive balance) real accounts. As for virtual and inactive real accounts, the news headlines are available only, with a delay of 30 minutes.
You can disable the display of the news you are not interested in. To disable it, go to the news filter and unmark the themes the news on which should not be shown.