Everything should be made as simple as possible, but not simpler.
Making forex deals
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:
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.
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.
Let's consider the trade execution form in detail.
It contains the items as follows:
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:
To switch between the modes in the tab use the ▼ marker.
2. Trading styles
The TradeRoom system allows trading in one of two styles:
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.
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:
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.
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).
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.
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.