## Forex FAQs

O How can I calculate the margin requirement for each trade?

Units of first currency / Leverage = margin requirement

Example 1: trade of 1 lot on GBPUSD with leverage of 1:100 1 lot = 100,000 units of base currency, in this case the GBP100,000 100,000/100 = GBP 1,000 Margin requirement

Example 2: A trade of 1 lot on GBPUSD with leverage of 1:500 1 lot = 100,000 units of base currency, in this case GBP100,000 100,000/500 = GBP200 Margin requirement

O How many trades can I have open at any one time on MT4 Demo?

100 trades in total, including pending orders

O How do you calculate profit/loss?

The profit/loss per pip is calculated as per below tables.

The profit/loss per pip is always calculated based on the term currency (the 2nd currency in a pair). If the Alpari account is in the same currency as the term currency, any profit/loss made does not need to be converted. If otherwise, the profit/loss would be converted in to the deposit currency at the spot rate of the platform.

The only currency which has a different profit/loss value per pip is any JPY currency pair:

Example:

You buy 0.02 lots EURUSD at 1.40908, the trade closes at 1.41000, and you have a GBP Alpari account.

• (1.41000 - 1.40908) = 0.00092 = 9.2 pips
• 9.2 pips x USD0.10 (profit/loss per pip per 0.01) x 2 (as it is 0.02 lots) = 1.84 Your profit is 1.84 USD. This is converted to GBP and your account balance will increase by GBP1.14 (USD1.84/1.6130 using the rate at the time of writing).

O What can I do if I have a trade query?

Please email us at support@alpari.co.uk quoting your Alpari (UK) account number, the order number and an explanation of exactly what the query is. The more supporting evidence you provide the quicker we can review your query.

O How can I downsize my lot size on a live trade? (i.e. reduce the lot size while trade is still alive)

Right click on the trade with your mouse - choose "Close order".
A pop up box will appear; select under "Volume" the amount that you want to reduce it by, then click the yellow bar "Close" and then click OK.

O Do you support history data, to trade for example 15 minutes, 1 hour, 1 day or other timeframes?

Yes, we support history data for 1min, 5min, 15min, 30min, 1hr, 4hrs, daily, weekly and monthly.

O What are trailing stops and does MT4 offer them?

The most basic technique for establishing an appropriate exit point is the trailing-stop technique. Very simply, the trailing stop maintains a stop-loss order at a precise percentage below the market price (or above, in the case of a short position). The stop-loss order is adjusted continually based on fluctuations in the market price, always maintaining the same percentage below (or above) the market price.

Deciding what constitutes appropriate profits (or acceptable losses) is perhaps the most difficult aspect of establishing a trailing-stop system for your disciplined trading decisions. Setting your trailing-stop percentage can be done using a relatively vague approach rather than precise precepts.

MT does have trailing stops included (go to Terminal - Trade tab - right click with the mouse on any trade and select Trailing stops). The most important thing to know is that the Trailing Stop has to be in profit for the number of specified pips before it gets activated.

O Is the value of 1 pip the same as 1 point?

In Alpari (UK)'s MT4 5 decimal place system 10 points equal to 1 pip, therefore if you are setting a trailing stop at 50 points, it equals to 5 pips.

Buy/sell limit: a limit order is an instruction to deal if the price moves to a more favourable level that is why these orders are called improvement orders: you hope to trade at an improved price to that currently available in the market. So a limit order would be a request to buy at a price lower than the current price or request to sell at a price higher than the current price.

For example: If the current offer in GBPUSD is 1.61086, you might leave a limit order to buy at 1.61070.

If the current Bid price in GBPUSD is 1.61086, you might leave a limit order to sell at 1.61099.

Buy/Sell Stop: a stop order is an instruction to deal if the price moves to a less favourable level (remember it is less favourable to buy at higher prices and to sell at lower prices). So a Stop order would be a request to buy at a price higher than the current price or a request to sell at a price lower than the current price. For example: If the current price of spot EURUSD is 1.38985, you might leave a stop order to buy at 1.38998.

If the current price of spot EURUSD is 1.38985, you might leave a stop order to sell at 1.38975

O Does Alpari UK offer VPS services?

No, Alpari (UK) neither offers nor supports VPS, but have no objections to their use.

Forex Guide sponsored by Alpari (UK)