Trading Conditions

Spreads

We offers tight spreads to all clients, irrespective of their account types and trade sizes.

Spreads on our platform are variable, with quotes coming from as many as 22 Major Banks and Electronic Crossing Networks. Spreads can go as low as 0.0 pips on our True ECN Account.

Swap Rates

A forex swap rate is defined as an overnight or rollover interest (that is earned or paid) for holding positions overnight in foreign exchange trading.

• Swaps are applied to your trading account only when positions kept are kept open until the next forex trading day.
• Swaps are applied when the rollover occurs at the end of day, which is 00:00 server time.
• Some currency pairs may have negative swap rates on both sides, both ‘long’ and ‘short’.
• Swap rates are calculated in points, converts them automatically into the base currency of the account.
• Each currency pair has its own swap charge and is measured on a standard size of 1.0 standard lots (100,000 base units).
• Swaps are calculated and applied on every trading night. On Wednesday night swaps are charged at triple rate the usual rate.

To view the latest swap rates:

• Launch PPK Invest Trading Platform

• View > Market Watch

• Right Click on the Market Watch and select Symbols

• Choose the currency pair you wish to check and select Properties.

• A new window will open that shows the long and short swap rate for the pair selected.

Flexible Leverage from 1:1 up to 500:1

Depending on the account type you open at Tradobox, you can choose the leverage on a scale from 1:1 to 500:1. Margin requirements do not change during the week, nor do they widen overnight or at weekends. Moreover, at Tradobox you have the option to request either the increase or the decrease of your chosen leverage.

Using leverage means that you can trade positions larger than the amount of money in your trading account. Leverage amount is expressed as a ratio, for instance 50:1, 100:1, or 500:1. Assuming that you have $1,000 in your trading account and you trade ticket sizes of 500,000 USD/JPY, your leverage will equate 500:1.

How would it be possible to trade 500 times the amount you have at your disposal? At Tradobox you have a free short-term credit allowance whenever you trade on margin: this enables you to purchase an amount that exceeds your account value. Without this allowance, you would only be able to buy or sell tickets of $1,000 at a time.

Leverage Risk

On the one hand, by using leverage, even from a relatively small initial investment you can make considerable profit. On the other hand, your losses can also become drastic if you fail to apply proper risk management. This is why Tradobox provides a leverage range that helps you choose your preferred risk level. At the same time, we do not recommend trading close to a leverage of 500:1 due to the high risk it involves.

Margin

Margin is the amount of collateral to cover any credit risks arising during your trading operations. Margin is expressed as the percentage of position size (e.g. 5% or 1%), and the only real reason for having funds in your trading account is to ensure sufficient margin. On a 1% margin, for instance, a position of $1,000,000 will require a deposit of $10,000. The margin in your trading account needs to be equal or above 100% in order for you to be able to open new trades, unless the new trades will result in your trading account being fully hedged.

Margin Monitoring

At Tradobox you can control your real-time risk exposure by monitoring your used and free margin.

Used and free margin together make up your equity. Used margin refers to the amount of money you need to deposit to hold the trade (e.g. if you set your account at a leverage of 100:1, the margin that you will need to set aside is 1% of your trade size). Free margin is the amount of money you left in your trading account, and it fluctuates according to your account equity; you can open additional positions with it, or absorb any losses.

Margin Call

Although each client is fully responsible for monitoring their trading account activity, Tradobox follows a margin call policy to guarantee that your maximum possible risk does not exceed your account equity.

As soon as your account equity drops below 100% of the margin needed to maintain your open positions, we will attempt to notify you with a margin call warning you that you do not have sufficient equity to support open positions.

Stop-Out Level

The stop-out level refers to the equity level at which your open positions get automatically closed. For Tradobox STANDART, TRUE ECN and SWAP FREE trading accounts the stop-out level is 50%.

Trading Hours

For day traders the most productive hours are between the opening of the London markets at 08:00 GMT and the closing of the US markets at 22:00 GMT. The peak time for trading is when the US and London markets overlap between 1 pm GMT – 4 pm GMT. The main sessions of the day are the London, US and Asian markets. Below is a brief overview of trading sessions that will help you make the most of the market:

• LONDON SESSION – open between 8 am GMT – 5 pm GMT; EUR, GBP, USD are the most active currencies;
• US SESSION – open between 1 pm GMT – 10 pm GMT; USD, EUR, GBP, AUD, JPY are the most active currencies;
• ASIAN SESSION – opens at about 10 pm GMT on Sunday afternoon, goes into the European trading session at about 9 am GMT; not very suitable for day trading.

You are able to view the trading hours from within your trading terminal by following the process outlined below:

• Launch Tradobox Trading Platform.

• Go to View > Market Watch

• Right click on any instrument in the ‘Market Watch’ section.

• Left click on the ‘specification’ button.

• A new window will open that shows the trading hours for the pair selected.

Please note that Tradobox server time and charts are GMT + 2 or GMT + 3( when daylight savings is in effect).