FAQs

Forex is also known as Foreign exchange or FX, it allows you to buy and sell currencies where you can trade one currency against another currency. The forex market is available 24 hours a day, five days a week and is one of the largest and most liquid financial markets in the world.

The Forex market is open 24 hours a day, 5 days a week. 

The time on MT4 is shown as Eastern European Time (EET). During Daylight-Saving Time, EET is 3 hours ahead of Greenwich Mean Time (GMT +3). During Standard (Winter) Time, EET is 2 hours ahead of GMT (GMT +2).

The end of our trading day always aligns with the close in New York.

No, unfortunately, not. Trades can only be placed during market hours

Each currency pair, is represented by a three-letter code. The first currency represents the base currency and the second currency represents the quote currency. The value provided in an exchange rate refers to the amount required in the quote currency to buy 1 unit of the base currency. For example: EURUSD is currently trading at 1.23584 means that you need 1.24 USD to buy 1 Euro.

PIP stands for Point in Percentage. A pip measures the amount of change in the exchange rate for a currency pair. A fractional pip is equivalent to 1/10 of a pip. There are 10 points to every 1 pip. Each pip is worth roughly one unit of the currency in which your account is denominated.

The spread is the difference between the BID and the ASK price. The BID price is the rate at which you can sell a currency pair, and the ASK price the rate at which you can buy a currency pair.

For now you can have an account only in USD

The base currency is the first currency in a currency pair. The quote currency is the second currency in a currency pair also known as Term currency. For example, the EURUSD currency pair, EUR is the base currency and USD is the quote currency.

Yes you can. However, major news and announcements can often cause volatility or uncertainty in the Forex market and this can affect all products. Orders are sometimes filled away from the requested opening price due to gaps in the market. When you place an order, you may experience slippage.

Contract for Difference (CFD) is a form of derivative trading which allows you to speculate on the rising or falling prices.

The main differences between CFD trading and Forex trading is that CFD trading involves different types of contracts covering a diverse set of markets, such as indices and commodities whereas Forex offers pure currency trading. CFDs are mostly influenced by specific factors such as supply and demand whereas Forex is mainly driven by global events.

The financing cost for your CFD trade is referred to as ‘rollover.' This is the interest paid depending on the size of the position and for holding a position past 20:45 GMT. For Index CFDs, any dividend adjustments issued are included in the rollover amount as well. The formula for financing cost is as follows:

Closing Price of the Index * the interest rate / 100 / Number of Days +/- Dividends * Trade Size

On Fridays, if you hold a position over the weekend, rollover is charged 3 times as usual.

You can close your position before 20:45 GMT to avoid rollover and the charge will not apply.

Please click on the following link to view the expiry dates: http://www.egmsecurities.com/pricing/cfds/

You can trade Gold, Silver, Palladium and Platinum.

The trading hours are the same however there is a daily break (GMT) at 21:00 – 22:00 BST during British Summer time and 22:00 – 23:00 DST Daylight saving time.

The unit of measure for Precious metals are in troy ounces. Please refer to the market specification for precious metals to see the contract sizes for Gold, Silver, Palladium and Platinum against to the US dollar in the following link: http://www.egmsecurities.com/pricing/precious-metals/

The basic contract unit of the Retail Foreign Exchange is the lot.

The standard lot size is 100,000 units of the base currency (1st currency in the currency pair), however you can also trade either multiples of, or fractions of, lots. The minimum at EGM Securities is 0.01 lots.

Therefore 1 lot on the GBP/USD market is the equivalent of buying / selling ￡100,000 and either buying / selling X amount of USD at the current rate.

The minimum lot size that you can trade with, is 0.01 lot on Forex and Metals.

Leverage is a way to make larger investments than their initial risk capital will allow. For example: A trader can use 1:400 leverage and can control a $500,000 trade with $1000.

EGMSecurities uses a ‘Floating Leverage’ system which automatically applies the maximum leverage available on a trade by a trade basis depending on the client’s trade volume in USD.

Nominal Value of open position = Number of lots x Contract size

Example: Open positions over 15 Million USD nominal value will carry the following leverage:

• The first 6M will carry a leverage of 1:400
• The following 2M carries a leverage of 1:300
• The following 2M carries a leverage of 1:100
• The following 5M carries a leverage of 1:50
• and everything above 15M carries a leverage of 1:33.

For more details please check our Floating Leverage page.

To change the leverage on one of your EGM Securities accounts:

• Login to MyEGMSecurities
• Select the ‘My Accounts’ tab at the top of the page
• Click on your trading account
• Then click on ‘Edit’ under the area which says ‘Leverage’.

Your request to change your leverage will be sent to our Support team. Once they have approved your request you will receive an email notification.

If you know your current password:

• Login to your portal by using the following link  https://app.egmsecurities.com 
• Click on the tab ‘My Setting’
• Click on ‘Change Password’
• Enter your Current Password and then new password and confirm the new password.
• Then click on ‘Save’

Yes. You can hedge your positions on your EGM Securities trading account.

Hedging is when you buy and sell the same amount of an instrument and is used to protect your positions from an adverse move or event in the market.

The result of hedging positions is not always fixed, as it varies together with the spread. Sudden spread widening (during news releases for example) can lead to a margin call or stop out as the widening negatively affects both positions and thus cause overall losses.

Our margin requirement for hedged positions is Zero.

When you decide to hedge a position in one particular instrument (respectively buying or selling the same amount of that instrument), there will not be any margin needed to maintain the hedged position. As such, your net position will be equal to zero.

As a result of the decreased margin, you will have the benefit of more available funds.

Example:

Margin Free hedging however can also pose a risk of triggering either “Margin Call” or “Stop Out” events if one of the positions is closed and the other requires a margin that equals or exceeds the one available for trading.

Swap-free accounts are an option for customers who have the preference to use trading without adjustments to swaps on selected products. However, swaps are charged on Swap Free accounts for CFD Indices and Exotic pairs. You will not be charged Swaps on Forex Majors, Minors and Metals.

To apply for a swap free account, you need to apply for a live account and agree to the Swap-free terms and conditions.

If you wish to convert your existing account to a swap free account, please contact our Client Support team at support@egmecurities.com.

All client funds are held in accordance with client money rules mandated by the relevant regulatory authority, and held in segregated accounts with a top tier bank.

EGM Securities' servers are all located in London, UK (LD4).

EGM Securities uses a pool of liquidity providers including top tier Banks as well as smaller Banks and brokerages whose prices are aggregated to offer the best price to our clients.

EGM Securities' offices can be visited by appointment with your account manager.

Please bear in mind the standard trading rules:

• SELL (BID) orders are executed on the BUY (ASK) price
• The chart only shows the SELL (BID) price
• In order to calculate the ASK price you need to add the spread at that time in order for your requested price to be executed.
• The average spreads are stated on our website under Pricing, however, these are an indicative and can vary especially over night hours and news releases

In order for your ASK (BUY) order to have been executed, it would have needed to have reached the ASK price which includes the spread and this is not shown in the candlestick on the chart.

You can add the ASK line to the chart by right clicking on main body of the chart, click on 'Properties' > 'Show ASK line. The ASK line will then appear showing you the BUY (ASK) price which includes the spread.

You can also see both the BID and the ASK price in the Market Watch which displays the symbols, prices and spread depending on what you choose to add to the columns.

The MetaTrader4 order window is used to place trades. The order window can be opened using any of the following methods:

1. Right-click on a currency pair in the Market Watch window and select "New Trade"; or
2. Right-click on an active chart and select Trade > New Order; or
3. Click on the "New Order" button in the toolbar, or
4. Press the F9 hot key on the computer keyboard.
5. You can also enable ‘One Click Trading’

In the Terminal window click on the trade tab and highlight your open position, double click on it and the new order window will appear.

Click on the yellow button below 'Sell' and 'Buy' to close out a position.

Right click on the highlighted order and select Close Order.

If one click trading is enabled, you can close a position in clicking on the 'X' on the right hand side of the order line in the Terminal window.

Once the Order window has been opened, traders can enter information into fields and make selections from drop-down lists to prepare the trade order.

You must specify the following:

• Symbol from the drop-down list at the top (this will automatically be set to the symbol on the active chart). A corresponding tick chart appears in the left pane that displays current prices.
• Volume in terms of lot size. 1.0 is equal to 1 lot, or 100,000 units. Many traders select to trade in smaller volumes, such as 0.1.
• Stop Loss and Take Profit set a limit that you would like your trade executed at.
• Comment if desired. Traders can enter text in the Comment field that will be assigned to the order.
• Type either Market Execution (a market order) or Pending Order (a limit order; discussed more in the Pending Orders section) where the trader can specify the desired entry price.

After these fields have been specified:

• Click "Sell by Market" or "Buy by Market", depending on the desired trade direction, to place the trade.
• Click "Okay" to close the window.

If a Pending Order is selected, select the type of order from the drop-down menu. Available order types include:

• Buy Limit
• Sell Limit
• Buy Stop
• Sell Stop

Then specify the price at which the order will be triggered at by entering the value next to the ‘at price’ field. To avoid manually entering the price, click on the up or down arrow next to the price field to fill in the current price, and adjust as necessary.

If your Margin level falls to less than 30% of the required margin, your trade(s) will be closed out by our Automated Risk Management System starting with the position with the greatest loss. You need to make sure that you fund your account well in advance to make sure you can support your margin requirements. To calculate the margin level (%), apply the following: (Equity/ Margin held on open trades) x 100

• Equity equals your balance plus floating profit or loss.
• Margin is the amount of funds being used to hold a position open.
• Margin level is the equity divided by used margin multiplied by 100.

Analysis Portal

The Analysis Portal allows you to run reports detailing each side or your trades, including the Mark-up_point. Please follow the steps below to login to the Analysis Portal through the Research Center:

1. Login to https://app.egmsecurities.com

2. Click on your account name on the top right-hand corner > Then select ‘Reports’

3. Enter your Trading account number and your MT4 order # in the fields that appear > Then select ‘Run’

4. The Analysis Report will appear as per the below:

Once you have opened a Demo account or applied for a Live account. Your credentials will be sent to your registered email address. In this email, you will also find a link to download the MetaTrader 4 platform. You will need to click on this link to start the installation process.

You can also download the platform by logging in to your portal https://app.egmsecurities.com

Click on "Dashboard" then click on "Download Platform"

In order to login to your MetaTrader 4 platform, you will need your login number, password and server. These credentials are sent to your registered email address.

Once your MT4 has downloaded. In the authorisation login box that appears on your screen, please enter your credentials and select the correct server from the drop-down box. You can also go to ‘File’ > ‘Login to Trade account’ and the authorisation login box will also appear.

To view all the products EGM Securities offers, right click in the Market Watch and select ‘Show all’. You can then scroll through the list of products to see what we offer.

Yes, you can login to your trading account from different devices at the same time. E.g. Desktop, smart phone and tablets.

Please note that the MetaTrader 4 is a Windows program, for full user functionality a Windows computer will be more appropriate. However, if you download a plugin which allows Windows programs to function then you can download the MetaTrader 4 platform onto your Mac.

Yes, you will need to download the MetaTrader 4 by ‘MetaQuotes’ application from the App store.

Yes, you will need to download the MetaTrader 4 by ‘MetaQuotes’ application from Google play.

At EGM Securities, we quote a rolling cash price for our indices. Therefore, whenever a company which is a constituent of an Index, posts a dividend, it will affect the price we quote. For Example:

If a US30 company pays a dividend then that will affect the US30 index when it is paid, as its share price will automatically fall by the value of the dividend.

This will then cause the US30 index to fall depending on the percentage weighting that the company has in the US30.

If you are long on a position, dividends will be credited based on the rate and your trade volume. If you are short on a position, then dividends will be debited based on the rate and your trade volume.

If BP was to pay a dividend then that will affect the UK100 index when it is paid, as BP’s share price will automatically fall by the volume of the dividend, this in turn will cause the UK100 index to fall depending on the percentage weighting that BP has in the UK100.

Dividends are a distribution of a portion that a company’s earnings have been decided by the board of directors, to a class of its shareholders.

To create a statement from the platform please follow the instructions below:

1. Open the platform and login
2. Select the ‘Account History’ tab in the ‘Terminal’
3. Right click in the middle of the terminal and select custom period

4. Select the start and finish date for the tax year you are looking at and press ‘OK’.

5. The history from the period selected will then fill the ‘Account History’ section

6. Right click again and select ‘Save Report’

Your demo account will expire if it is not active after 90 days of opening it.