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Foreign exchange and CFD transactions are high-risk margin transactions and are only suitable for individual and institutional investors who can afford the risk of loss. Before making a decision, you should carefully consider your investment objectives, financial situation, experience level, risk tolerance and other conditions. This website is for your reference only and does not make any advice. You should be familiar with all risks associated with margin trading and make prudent investment decisions independently. If you are in any doubt, please seek professional advice.
CXM Direct LLC can provide a foreign exchange trading account with a leverage ratio of up to 400:1, but high leverage means that high returns and high risks coexist. Small price fluctuations may cause large fluctuations in account equity, so the existence of leveraged trading makes you Possibility of losing some or all of your initial deposit. Therefore, you should invest according to your risk tolerance.
Using the network to conduct transactions has certain risks, including but not limited to Internet system failure, software or hardware failure and other force majeure factors. Since CXM Direct LLC cannot control your device, it is specially stated that in the event of network connection or network speed problems during the transaction process, it is impossible to log in to the platform or perform other operations. responsible for the loss. At the same time, we will continue to optimize our network environment and server, and strive to provide you with a good trading environment.
All opinions, news, analysis, prices or other information posted to you on this website are for general market commentary only and do not constitute any investment advice, or an inducement or recommendation for you to buy or sell any over-the-counter product or other financial instrument. You shall not be liable to CXM Direct LLC for any direct or indirect results, including (but not limited to) profits or losses, that may result from reference to such information.
CXM Direct LLC has taken reasonable steps to ensure the correctness of such information on the website. The information content of the website may be changed at any time without notice. You may use the website legally, but you may not use, interfere with, destroy, disrupt, attack any part of the website without authorization.
You may receive a short notice on the phone that you need to increase your margin significantly to maintain your position. If you do not meet the margin requirement within the specified time, your position will be forced to close out, and you will be responsible for the resulting losses.
In order to protect the interests of customers, CXM Direct LLC does not support proxy valet operation. Due to the risky nature of the foreign exchange market, all clients of CXM Direct LLC are required to operate their own trading accounts, and are not allowed to entrust their accounts to others for operation.
If the client insists on handing over the user name and password of his trading account to others for trading, CXM Direct LLC will be regarded as the transaction conducted by the client himself. Any losses incurred by the client's account shall be borne by the client himself. CXM Direct LLC will not cooperate with any financial institution on behalf of clients. The employees and agents of CXM Direct LLC are not allowed to operate the client's account. Please be aware of this!
Any EA is inherently uncertain, so if you choose an EA to copy trades, please do so at your own risk. CXM Direct LLC is neutral about your use of EA (Expert Advisors) automated trading programs, CXM Direct LLC will not recommend any EA for you. At the same time, CXM Direct LLC does not assume any responsibility for position problems caused by Expert Advisors, opening or closing, regardless of the circumstances.
What is slippage?
Slippage is the difference between the point of the customer's order and the point of the last transaction during the transaction.
What is the cause?
There are three reasons for slippage:
1. When there is a delay in the network, the customer's order will also be delayed, so there will be a gap between the opening price and the transaction price that he sees
2.2. Since we adopt the seamless docking (STP+ECN) transaction mode, all the customer's transaction instructions are directly sent to the ECN, and the ECN adopts the electronic matching transaction mode, so we must ensure that the transaction volumes of both parties are matched with each other. , if there is an imbalance, then there is a so-called slippage situation.
The following picture is an example: When the customer sells 1.1M at the price of 1.06852, the transaction will be executed at the price of 1.06852, but if the customer sells 3.7M at the price of 1.06852, then the transaction will be The price of the three depths of 1.2M+1M+1.5M is weighted and averaged for settlement, so as to obtain the transaction price. (1.2*1.06852+1*1.06851+1.5*1.06849)/3.7=1.068505, since the MT5 platform does not provide in-depth viewing, in this case, there will be a slippage that the customer thinks.
3. When the data is released, liquidity providers will become very cautious like traders when the market is not clear, and will take the form of not providing quotations or increasing the spread. In this case, customers are trading At times, slippage will also occur.
The principle of slippage in take profit and stop loss
Transaction principle:
Stop-loss and take-profit means that it is triggered after the quotation reaches or exceeds the set price, and the next tick quotation that can be traded after the trigger is triggered. Therefore, the stop loss and profit set by the customer are not necessarily the final closing price, and the transaction price is determined by the market price at that time.
Example:
When the gold price is quoted (1211.45/1211.75), a long order is placed (the long order is closed to see the ask price), the take profit is set at 1220.00, and the price rises steadily. Assuming that the ask price is 1219.60, 1219.80, 1220.10, and 1219.50, the order will be The first price that exceeds the take profit at 1220.10 is triggered, and the transaction is executed at the next tick quotation at 1219.5; if the price is the next quotation after 1220.10
The price is 1222 and the order is very likely to be traded around 1222.00.
Slippage cannot be avoided, nor can the range be predicted. Therefore, CXM Direct LLC does not take any responsibility for the slippage caused by the market gap, nor for the losses caused by the forced liquidation of the account due to the slippage when encountering special market conditions.
There are usually two situations in the price gap:
1. One refers to an extraordinary interval between the previous price and the next price, resulting in a price gap, such as the "gap" we see in the left picture.
2. In the same minute, there is a huge change in the price, as shown in the picture on the right. Although there is no gap in this situation, the market still has a gap.
Like the widening of the spread, gapping is also prone to occur when major financial data is released or when unexpected news events occur, such as the announcement of non-farm payrolls and U.S. interest rate decisions, as well as weekend closings and Monday openings, etc. The effect of gapping on trading is:
1. Whether it is take profit, stop loss, market order or other entry-type pending orders, as long as the market gaps, its transactions will be affected. The platform will fill orders for customers at the price after the gap. Since this price is the real price that exists in the market, it is impossible to predict its distance from the price before the gap.
2. Gap will cause the slippage of the order to be filled.
3. The slippage transaction caused by the gap may cause the client to have a negative net value after liquidation. In this case, CXM Direct LLC will require the client to replenish the negative value of the position.
Therefore, CXM Direct LLC has the responsibility to remind customers here that they should make prudent investments based on their own financial situation and trading experience with a full understanding of market risks. However, CXM Direct LLC does not assume any responsibility for slippage or liquidation caused by market gaps.
As an ECN platform provider, CXM Direct LLC provides customers with floating spread transactions. Customers can view the basic situation of spread fluctuations through the trading products column on the official website. However, in some special cases, the trading products will also have a higher spread than the average, which we call spread expansion.
Spread expansion usually occurs at the time of announcement of special news events. At this time, foreign exchange, precious metals and other products will have a gap in the price of the market, and the spread will expand, and the CFDs of CFD products will also have a spread outside the normal trading hours of futures. expanding phenomenon.
So why does the spread widen?
Since many banks and trading institutions stopped quotation and trading for risk management when the market opened or risk events occurred, the source flow of liquidity quotations became smaller, and the spread of CXM Direct LLC would change with the premise of very few bank quotations. the expansion.
Generally, the time of spread expansion is concentrated in:
a. Within 5 minutes of closing on weekends and opening on Mondays;
b. Important data or major news occurs.
The possible impact of spread widening on trading:
a. Liquidation of the locked account; (If the customer's available margin is insufficient, the spread widens and the net value decreases, which will lead to a low margin ratio. When the net value is reduced to 100% of the margin, the system will force the customer's position to liquidate. , in this process, it is easy to be accompanied by slippage, resulting in the reduction of funds after the customer's liquidation)
b. The transaction of the take-profit and stop-loss points of the lock-up order is asymmetrical. (Because of the huge difference between the buying price and the selling price, the transaction price of the buying price and the selling price also has a huge difference.)
Therefore, CXM Direct LLC hereby reminds clients of locked positions to reserve sufficient margin for trading during the trading process, so as to avoid liquidation of positions due to the net value being less than 100% of the margin. Since this phenomenon is a normal phenomenon in market transactions, CXM Direct LLC strongly recommends customers to read the risk statement carefully and understand the real market conditions before choosing to trade. Warehouse, CXM Direct LLC does not assume any responsibility, let alone give any compensation.
