ECN Execution Rules

As a regulated, MiFID-compliant European broker, we strive to provide our clients with superior ECN order execution, and as a leading ECN broker it is our responsibility and priority to treat all of our clients on an equal and fair basis. The following general rules apply when you open a Trading Account with us.

Types of Orders

As our client, you are given the option to place the following orders for execution:

• Market Order
  A request to open or close a Buy or Sell position, at the current available market price. Your request will remain live until executed. FxPro cTrader will automatically aggregate all available liquidity at the best possible prices available and fill at VWAP (Volume-Weighted Average Price).
• Limit Order
  A limit order is an order to ‘buy’ or ‘sell’ an instrument at a specific price. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. Once the market reaches the limit price the order will be triggered only if there is available liquidity to execute at the requested price or better. If there is insufficient liquidity the limit order will remain pending until triggered at a later date.
• Stop Order
  A stop order is an order to ‘buy’ or ‘sell’ a CFD once the market reaches a specific price. A ‘buy’ stop order is set at a price above the current market price. A ‘sell’ stop order is set below the current market price. Once a stop order is triggered it is treated as a Market Order. If the stop order is not triggered it remains in the system until a later date. Please note that in order to protect the position you may need to place a new Stop Loss and/or Take Profit.
• Stop Loss/Take Profit
  These are attached to an already open order to close a position at a specified market price. A Stop Loss may be used to minimize losses whereas a Take Profit may be used to secure profits.

Best ECN Execution

We take all necessary steps to obtain the best possible result for our clients when executing their trading orders:

1. Price: For all instruments, we quote two prices: The higher price (ASK) at which the client can buy (go long) for that instrument, and the lower price (BID) at which the client can sell (go short) for that instrument:
   • Spread: The difference between the lower and the higher price of any given instrument. Through our ECN platform we offer competitive spreads.
   • ASK Price: Buy Limit, Buy Stop, Stop Loss and Take Profit for opened short position are executed at the ASK price.
   • BID Price: Sell Limit, Sell Stop, Stop Loss and Take Profit for opened long position are executed at the BID price.
   • ECN Execution Price Orders: Market Orders, Stop Loss and Take Profit are executed at the available current market prices.
   • Buy Limit and Sell Limit orders are executed at the requested price or better.
   • Buy Stop and Sell stop are executed at the requested price or, if insufficient depth is available in the market, will be filled at the current available market price.
2. Costs: For opening a position in some types of financial instruments, the following fees may occur:
   • Commissions: Are charged as a fixed amount of 30 USD per $1 million traded.
   • Financing Fees: The value of opened positions in some types of financial instruments is increased or reduced by a daily financing fee "swap." Financing fees are based on prevailing market interest rates, which may vary over time.
3. Speed of ECN Execution: FxPro places a great importance on speed when executing clients’ orders and strives to offer high speed of ECN execution.
4. Likelihood of Execution: With the FxPro cTrader, ECN traders have guaranteed execution with no requotes as long as there is depth available in the market. With level II pricing traders can view in real-time both the best bid and best ask price, and the full depth on each side of the book enabling informed decision making on the size of the book.
5. Size of Order: The minimum size of an order is 10,000 of base currency.
6. Leverage/Margin: Required margin is the amount needed to be deposited/present in the Trading Account in order for a position to be opened. This is related to the leverage ratio of the account, which is available from 1:1 to 1:100. At Margin level less than 40% FxPro has a discretionary right to begin closing positions starting from most unprofitable. If Margin level is equal or less than 30%, all positions are automatically closed at market price. FxPro offers margin monitoring for traders in real-time and offers a negative balance protection so traders know that they may not lose more than their risk capital.

ECN Execution Venues

ECN Execution venues are the entities within which the orders are placed or to which FxPro transmits orders for execution on behalf of a client. For the purposes of orders for the financial instruments provided by FxPro, we act as principal and not as agent on the client's behalf. Even though FxPro may transmit your orders for ECN execution through its ECN platform to liquidity providers this is done in the name of FxPro and contractually the company is the counterparty to your trades. Therefore, FxPro is the sole execution venue for the execution of the client's orders.

Bid Prices on Charts

Charts in the terminal are built and shown only for Bid prices. However, for the opening of long positions and closing of short ones, Ask price is always used. But the ASK price is not shown in the chart in any way and it cannot be sent. More scrutiny and review is available by enabling the "Show Ask line" parameter. After this command has been executed, an additional horizontal line corresponding with the current Ask price of the last bar will appear in the chart.

Margin Level Required to Open Lock or Hedge Positions

A lock or hedge position appears when a client opens a trade for the same volume in the contrary direction of one already open. This is not the same as closing the initial trade, since the lock position requires that both remain open.

When you open a lock position (the contrary position) you will not be asked for additional margin as long as your Margin Level is higher than 100% on your Trading Account.

Since the Margin Level ratio expresses the relation between the Equity and the Used Margin (Margin Level = [Equity / Used Margin] * 100) you can see that as long as you have positive Free Margin (Margin Level > 100%) you will be able to open lock positions without additional margin. If you don’t have positive Free Margin you won't be able to open any new position including lock.

You can check your Equity, Used Margin, Free Margin and Margin Level on the status line of your currency Trading Account.

Connection Failure

In the exceptional instances where you face problems connecting to our servers and need to place, modify, erase, or close trades or require any type of action on or information regarding your online Trading Account, please contact the trading desk immediately by phone on +357 25 969 239 as per the Terms and Conditions.