Table of Contents
How to trade on dbFX
Viewing Rates
Spot Trading
10
11
12
12
Trailing Stops
13
13
15
15
16
Account Information
17
17
17
18
Margin
19
19
Rollover
22
Reports
22
Trading Station
23
Charts
27
Contacts
28
Example:
EUR/USD is 1.2979, then 1.2979 US
Dollars can be exchanged for 1 Euro.
Examples:
Buying
Selling
The EUR/USD is currently trading at 1.2924. I am expecting the Euro to weaken
against the US Dollar causing the rate for the EUR/USD to move lower. To express
this opinion with a trade I would click the sell rate and enter a short position in
EUR/USD.
Spot Trading
Opening a position
on dbfx
Open a position at the current
market rate:
The simplest way to place an order to be
executed at the current market rate is by
left clicking on the exchange rate within
the dealing rates window for the currency
pair you wish to buy or sell.
After left clicking on the exchange rate for
the currency pair, a market order box will
appear. In the market order box there are
5 parameters which can be set prior to
submitting the order:
Parameters:
Account
Buy/Sell
Currency
Amount
Order Type
Pips if
applicable to
that order type
Examples:
If the current market price in
EUR/USD is 1.2683 and a trader
wishes to place an order to sell if the
market moves to 1.2750, he or she
would place a limit entry order.
Account
Buy/Sell
Currency
Amount
Parameters:
Account
Buy/Sell
Price
Currency
Amount
Example:
A trader has a buy position in EUR/USD which was opened at 1.2754 and the
current market price is 1.2750. The trader wishes to have this position automatically
closed at a loss if the sell price reaches 1.2700 or automatically closed for a profit
if the sell price reaches 1.2800. To have this occur the trader sets a stop order on
their open position at the rate of 1.2700 and a limit order on their open position at
the rate of 1.2800.
10
11
Example:
12
Trailing Stops
Example:
Market Orders
When placing a market order, the user
will now have a choice of execution logic,
under the Order Type drop down button
you can choose from three different
order types:
1. No order type specified: Market
Range = 0
2. Market Range
3. At Best
13
Limit Orders
Limit orders will be filled at the rate
specified. While the order is being filled
the status of the order will be
executing and can not be modified or
cancelled. Any unfilled portions of the
order will remain in waiting status. At
that point, the user can choose to cancel
or modify the order. As the market
conditions allow the remaining portions
of the order will be executed. Execution
may be in multiple pieces and will display
in the Open Portions or Closed Positions
window as applicable.
Stop Orders
Stop orders will be continually
incrementally executed until the entire
amount is executed. While the order is
being filled the status of the order will be
executing and can not be modified or
cancelled. The user may see different
prices for different portions of the total
amount. Executed trades will display in
the Open Portions or Closed Positions
window as applicable.
14
Closing positions
on dbFX
15
16
Account Information
The Accounts Window
Multiple Accounts
Window
17
18
Margin
All accounts are set to a default margin
requirement of 2%. At the 2% margin
level, the margin requirement is $2000 per
100,000 traded.
The Trading Station will calculate in real
time both the margin requirement and
the remaining usable margin in your
account. You can see them stated in the
Accounts window of the Trading Station
under the columns UsdMr (used margin),
and UsblMr (usable margin). If the
UsblMr column reaches zero, a Margin
Close-out will be triggered on the
account, and all open positions will
be liquidated.
19
The following examples illustrate how margin works on the dbFX Trading Station:
Trader As account equity is
$1,000,000. The account is set
to 1% margin or 100:1 leverage.
This means that for every lot opened,
Trader A must maintain at least
$1,000 in margin.
Example:
Account 1234 has a balance of
$25,000 and is on 2% margin
requiring $2000 for each 100,000
in open positions. Account 1234
buys 200,000 USD/JPY and sells
400,000 EUR/USD. As the account
has 600,000 in open positions this
trader is required to have at least
$12,000 in equity to margin these
positions. As this trader has
$25,000 in his account the most
this trader can loose before
triggering a margin close-out is
about $13,000.
Equity ($)
$988,000
Margin
1%
Leverage
100:1
Minimum Margin
Requirement
$1,000
# of Lots Open
400
Used Margin
$400,000
Usable Margin
$588,000
20
21
Equity ($)
$988,000
Margin
2%
Leverage
50:1
Minimum Margin
Requirement
$2,000
# of Lots Open
400
Used Margin
$800,000
Usable Margin
$188,000
Rollover
Conventionally, 16:00 London Time is
considered the end of the international
trading day, so when you hold open
positions through 16:00 London Time
you have technically held them overnight.
As a service to our clients, positions are
automatically rolled over every day at
16:00 London Time to prevent physical
settlement. When rolling positions
overnight, rollover is either added or
subtracted from your account.
Every currency you buy or sell has a
certain overnight interest rate associated
with it. The rollover varies based on the
interest rate differential between the two
currencies you are buying and selling,
and fluctuates day to day with the
movement of prices. These rollover rates
or swap rates are determined at the
Interbank level based on money market
rates.
For instance, on any given day, the
rollover can be $2.64 per lot for GBP/USD
and $8.06 per lot for EUR/USD. Rollover
amounts are shown in the currency of
your account and are posted in the
ROLL columns of the Simple Dealing
Rates Window every day at 12:00
London Time. For day traders that never
hold a position overnight through 16:00
London Time, rollover will not affect
trading.
Reports
At 16:00 London Time, funds are
automatically subtracted or added to
accounts with open positions because
of the automatic rollover. Funds are
added to the account for positions in
which the client is long the currency
bearing the higher interest rate. Funds
are deducted in the opposite
circumstance.
22
Trading Station
Customize Your Trade
Station
Colors, Sounds
and Fonts
23
Language
Sounds
Click on System
24
Colors
To change the Colors on the DBFX
Platform:
Click Options
Click OK
25
Fonts
To change the Font on the DBFX
Platform:
Click Options
Click OK
26
Charts
Traders wishing to access real-time
charts from the dbFX platform can
download the Market Scope Chart
Plug-in from the dbFX website.
Once downloaded, traders will be able
to launch real-time charts from the
dbFX Platform by clicking on the Create
Market Shot icon located in the upper
right hand corner of the Platform.
27
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