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Trading conditions

TradeCMX has pioneered at introducing a no re-quotes and no rejection of orders policy since 2012.
We offer 100% execution of orders with 99.35% of all our orders executed in less than 1 second.

TradeCMX Legendary Execution

TradeCMX has pioneered at introducing a no re-quotes and no rejection of orders policy since 2012. We offer 100% execution of orders with 99.35% of all our orders executed in less than 1 second.

Placing Orders

Our trading platform supports market, limit, stop and trailing stop orders, and you have the freedom to place orders at any time during trading hours. In case you prefer telephone trading and speaking directly to any of our dealers, at TradeCMX this is also possible. Your position will remain open until the closing trade is executed; moreover, your account balance is updated real-time according to current market prices.

With fractional pip pricing you can trade with tighter spreads and enjoy most accurate quoting possible.

Kindly note that you may only hold up to 200 positions open simultaneously (per client and including pending orders).

Fills on Market Orders

At TradeCMX you can trade 5 million with a simple click, as we guarantee fills on market orders up to 50 lots (5 million). However, if you intend to deal in an amount even bigger than this, you can either split up the order into smaller trade sizes, or request your full trade by telephone.

Fills on Stop – Loss and Limit Orders

At TradeCMX we understand the importance of stop-loss and limit orders in risk management, this is why we guarantee fills on both such orders up to 50 lots at the best available market price.

Holiday and Weekend Execution

Should there any market gaps occur from a Friday close to a Sunday opening, TradeCMX executes all pending limit or stop orders at the first available market price for the corresponding position size.

Volative or Illiquid Market Trading

Thanks to its alertness and business partnerships with various liquidity providers, TradeCMX aims to serve you best even during volatile market conditions by executing orders at the best available market price.

Please read further details in our Order Execution Policy.

Fixed or Variable Spreads?

TradeCMX operates with variable spreads, just like the interbank forex market. Because fixed spreads are usually higher than variable spreads, in case you trade fixed spreads, you will have to pay for an insurance premium.

Many times, forex brokers who offer fixed spreads apply trading restrictions around the time of news announcements – and this results in your insurance becoming worthless. TradeCMX imposes no restrictions on trading during news releases.

Fractional Pip Pricing

TradeCMX also offers fractional pip pricing to get the best prices from its various liquidity providers. Instead of 4-digit quoting prices, clients can benefit from even the smallest price movements by adding a 5th digit (fraction).

With fractional pip pricing you can trade with tighter spreads and enjoy most accurate quoting possible.

TradeCMX Spreads / Conditions

To view TradeCMX Spreads / Conditions for FX Instruments -> Click Here
To view TradeCMX Spreads / Conditions for Shares -> Click Here
To view TradeCMX Spreads / Conditions for Commodities Instruments -> Click Here
To view TradeCMX Spreads / Conditions for Equity Indices Instruments -> Click Here
To view TradeCMX Spreads / Conditions for Crypto Instruments -> Click Here

About 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 is fully hedged.

About 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 TradeCMX 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.

TradeCMX Leverage

Depending on the account type you open at TradeCMX, 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 TradeCMX you have the option to request either the increase or the decrease of your chosen leverage.

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 TradeCMX 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 Monitoring

At TradeCMX 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, TradeCMX 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 50% 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.

In case you are a client accustomed to telephone trading and we feel that you can’t maintain your open positions, you may receive a margin call from our dealers, advising you to deposit a sufficient amount in order to maintain your open positions.

Stop-Out Level

The stop-out level refers to the equity level at which your open positions get automatically closed. For both MICRO and STANDARD trading accounts the stop-out level is 20%.

TradeCMX Rollover Policy

TradeCMX debits or credits clients’ accounts, and handles rollover interest at competitive rollover rates for all positions held open after 22:00 GMT.

Although there is no rollover on Saturdays and Sundays when the markets are closed, banks still calculate interest on any position held over the weekend. To level this time gap, TradeCMX applies a 3-day rollover strategy on Wednesdays.

About Rollover

Rollover is the process of extending the settlement date of an open position (i.e. date by which an executed trade must be settled). The forex market allows two business days for settling all spot trades, which implies the physical delivery of currencies.

In margin trading, however, there is no physical delivery, so all open positions must be closed daily at end-of-day (22:00 GMT) and re-opened on the following trading day. This pushes out the settlement by one more trading day. This strategy is called rollover.

Rollover is agreed on through a swap contract which comes at a cost or gain for traders. TradeCMX does not close and re-open positions but debits/credits trading accounts for positions held open overnight, depending on the current interest rates (LIBOR/LIBID with added mark-up).

Calculating Rollover

Every currency trade is based on borrowing one currency in order to buy another. Interest is paid on the borrowed currency and earned on the purchased currency. For instance, if we assume that the interest rates in Japan and the US are 0.25% p.a. and 2.5% p.a. respectively, and you have a buy position of 1 lot in USDJPY at 118.50, you will earn 2.5% per year on your USD and pay 0.25% per year on your borrowed JPY.

This means that with an open position you gain USD 6.16 per day [100,000* (2.5%-0.25%)/365]. This amount is credited to your account and equivalent to 0.73 pips per day [118.50* (2.5%-0.25%)/365]. Similarly, if you have a short position in USDJPY, you lose USD 6.16 per day. Thus rollover interest can provide an added stream of profit or loss for you.

Booking Rollover

22:00 GMT is considered to be the beginning and the end of a forex trading day. Any positions which are still open at 22:00 GMT sharp are subject to rollover and will be held overnight. Positions opened at 22:01 are not subject to rollover until the next day, but if you open a position at 21:59, a rollover will take place at 22:00 GMT. For each position open at 22:00 a credit or debit appears on your account within 1 hour, and will be directly applied to your equity account.
 

Forex Market Hours

As one major forex market closes, another one opens. According to GMT, for instance, forex trading hours move around the world like this: available in New York between 01:00 pm – 10:00 pm GMT; at 10:00 pm GMT Sydney comes online; Tokyo opens at 00:00 am and closes at 9:00 am GMT; and to complete the loop, London opens at 8:00 am and closes at 05:00 pm GMT. This enables traders and brokers worldwide, together with the participation of the central banks from all continents, to trade online 24 hours a day.

More Activity, More Possibilities

The forex market is open 24 hours a day, and it is important to know which are the most active trading periods.

For instance, if we take a less active period between 5 pm – 7 pm EST, after New York closes and before Tokyo opens, Sydney will be open for trading but with more modest activity than the three major sessions (London, US, Tokyo). Consequently, less activity means less financial opportunity. If you want to trade currency pairs like EUR/USD, GBP/USD or USD/CHF you will find more activity between 8 am – 12 am when both Europe and the United States are active.

Alertness and Opportunity

Other forex trading hours to watch out for are the release times of government reports and official economic news. Governments issue timetables for when exactly these news releases take place, but they do not coordinate releases between the different countries.

It is thus worth finding out about the economic indicators published in the different major countries, as these coincide with the most active moments of forex trading. Such increased activity means bigger opportunities in currency prices, and sometimes orders are executed at prices that differ from those you expected.

As trader, you have two main options: either include the news periods in your forex trading hours, or decide to deliberately suspend trading during these periods. Whichever alternative you opt for, you should take a pro-active approach when prices suddenly change during a news release.

Trading Sessions

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.

Phone Trading

TradeCMX trading hours are between Sunday 22:05 GMT and Friday 21:50 GMT. When our dealing desk is closed, the trading platform does not execute trades and its features are only available for viewing.

For any enquiries, technical difficulties, or urgent support, feel free to contact our 24-hour customer support by email or live chat any time. In case you don’t have your PC at hand, please make sure to have your account login details with you so that our support team can help you with your orders.

For closing positions, setting a take profit or stop loss order on an existing position you will also need to provide us with your ticket number. Then all you will need to do is request for a two-way quote on a particular currency pair and specify the transaction size (e.g. “I’d like a Dollar Japanese Yen quote for 10 lots.”). Please remember if password authorization fails, or you do not wish to undergo this process, we will not be able to carry out your instructions.