Corporations received direct access to currency trading on the Moscow Exchange. Trading on the foreign exchange market of the Moscow Exchange Trading directly to another

Today we will talk about what interbank Forex is, as well as how ordinary private traders can access it.

Interbank Forex is a specialized system that unites financial institutions, as well as other major participants in the foreign exchange market. Interbank Forex was created so that its participants could exchange foreign currencies at the optimal rate.

The emergence of such a market was due to the fact that banks in various countries felt the need for a convenient system for conducting conversion transactions, which consist of exchanging one currency for another at current market prices.



Thanks to the rapid development of the Internet, not only banks, but other counterparties interested in conducting prompt exchange transactions have gained access to trading on the interbank foreign exchange market.

Interbank Forex trading is carried out using a special network called the Electronic Communication Network (ECN). Currently, several such systems are already operating, the most popular of which are Currenex, Atiax, etc.



The mentioned systems act as liquidity providers. Their participants are financial institutions offering currency exchange at their own price, as well as investment organizations, insurance companies, dealing centers, etc.

The systems automatically analyze market offers and identify the optimal price level for the sale/purchase of various currencies. The received data is sent to all trading participants.

Interbank Forex - how to gain access

Currently, there are a huge number of dealing centers providing private traders with access to trading on the interbank foreign exchange market.

It should be remembered that if you use a regular trading account, then transactions are not entered into the international market, and your broker acts as a counterparty. Thus, your profit is the broker's loss and vice versa.



To gain full access to the interbank foreign exchange market you need. Accounts of this type have a huge number of advantages over regular ones, among which the main one is the ability to trade at non-market prices, formed depending on the current supply/demand ratio.

Unfortunately, ECN accounts are inaccessible to most novice traders, since to open them you need to have a fairly large capital, usually starting from a thousand dollars.

Among the key features of ECN accounts, the following deserve special attention:

  • When servicing such accounts, the broker's income is generated from the commission for each transaction concluded. Thanks to this feature, the dealing center is not interested in zeroing out traders’ deposits;
  • When using ECN accounts, a trader gets access to the largest liquidity providers, which almost completely eliminates the possibility of requotes;
  • When using accounts of this type, the trader can independently select a suitable counterparty.



It is important to remember that some unscrupulous dealing centers issue regular ECN invoices. There are several signs that will help you identify a real ECN account:
  • The broker must have verified access to leading ECN systems such as Currenex, Atiax, etc.;
  • Access to a tool such as the “glass”, which is a special window that displays a list of all trading participants (the volume of orders for each price);
  • The ability to obtain information about the counterparty for the order you opened.
The absence of the options described above is evidence that you are not using an ECN account.


Features of using ECN accounts on interbank Forex

If you decide to use this type of account for trading, then the following recommendations may be useful to you:

  • You can earn income on interbank Forex if you have both a large and medium deposit. Thanks to the large flow of liquidity, you can receive significant income not due to the volume of successful transactions, but due to their number;
  • ECN accounts do not have any restrictions on the use of scalping or pipsing strategies. This allows the trader to trade as he sees fit, without bypassing short-term transactions;
  • Accounts of this type are characterized by the absence of requotes, as well as a continuously changing spread value. For this reason, at the time of the release of important news reports, serious jumps in the price of an asset may occur in both directions. They are capable of knocking out closely placed feet. This feature should be taken into account and, if possible, refrain from trading at the time of news release.
I hope this material helped you understand what interbank Forex is and understand that it provides the best working conditions for experienced traders. If beginners who are still learning to trade on Forex are perfect

Welcome readers of the financial magazine "site"! In this article, you will learn what a currency exchange is, who provides access to an online currency exchange, and how real-time currency trading is carried out.

At the end of the article, we traditionally answer the most popular questions, and also provide expert advice to beginners on successful trading.

This publication is useful for those who plan to trade on the currency exchange, as well as for those who are interested in finance. If you fall into one of these categories, don't waste time, start reading now.

We will tell you about what a currency exchange is and how trading is carried out on a currency exchange online in this issue.

So, what is a currency exchange?

Currency exchange is a platform on which the purchase and sale of monetary units of various countries is carried out. The currency exchange is often called Forex, but it is not so. We wrote in detail about how to make money on it in a previous article.

Initially The purpose of creating a currency exchange was to provide convenience for exchanging currencies. However, this task gradually faded into the background. Today Forex is primarily used for the purpose of making a profit.

It is not possible to determine the exact turnover of the foreign exchange market. However, studies show that on average it exceeds 4 trillion dollars .

A large number of bidders can be identified:

  • individuals;
  • investment funds;
  • central banks;
  • brokers.

Brokers act as intermediaries between the exchange and the trader. In the process of work, they execute trading orders, receiving a reward for this. The broker's commission is charged in the form of spread.

Spread is the difference between the purchase price and sale price of a currency.

The currency exchange operates 24 hours a day on weekdays. At the same time, many modern brokers allow you to simultaneously trade in foreign exchange and. At the latter, work with securities is carried out - shares, bonds and derivatives from them.

An important difference between the Forex market and the stock exchange is trade exclusively through the Internet . There is no special room for trading currencies. There are, of course, special sections on exchanges, For example, on Moskovskaya. However, they are created only for the convenience of trading; currency prices are not formed here.

Important advantage market Forex are special fluctuations in currency prices. They move relatively steadily. If unexpectedly sharp movements occur, prices most often return to a certain range within a certain period of time.

On the stock market some instruments may become completely worthless. This happens during the collapse and bankruptcy of the companies that issued them.

Important! Due to the fact that sharp collapses in the foreign exchange market are much less common, He easier to analyze than stock. The forecasts made turn out to be more accurate.

This is not the only difference between the stock and foreign exchange markets. For ease of understanding, we have compared the various characteristics of the markets in the table below.

Comparative table of differences between the foreign exchange market and the stock market:

Forex attracts beginners with its presence leverage . When purchasing currency, the trader deposits only part of the funds into the account; the rest of the money is borrowed from the broker. The amount of funds received depends on the size of the leverage.

Leverage is a ratio that shows how much of his own funds the trader uses in a transaction, and how much he borrows from the broker.

Large leverage is not used in the stock market. Therefore, to trade you have to deposit a fairly large amount of funds. Don't forget that stock market instruments are quite expensive. This is especially true for markets Europe And America.

2. Main functions of the currency exchange 📑

The functions of the currency exchange are determined by the fact that the uncontrolled activities of traders can lead to unpredictable effects.

Don't forget that imbalanced exchange rates provoke serious problems in the economies of various countries.

Below are described 4 main functions of a foreign exchange exchange .

1. Pricing

One of the most important functions of a foreign exchange exchange is pricing . Traditionally, price refers to the agreement between seller and buyer about the value of a particular product.

On the currency exchange this definition is not absolutely reliable. The fact is that the exchange takes into account the opinions of not two participants in the transaction, but a huge number of people and organizations operating at a particular moment in the market.

Prices are not formed on their own, but are based on many different factors:

  • political and economic news;
  • military conflicts;
  • natural disasters;
  • the mood of the market (that is, the majority of trading participants).

It is these factors that determine the degree of fluctuations, predictability and other important phenomena.

The results of price formation are reflected in the charts. The result is an image that allows you to evaluate the change in the value of the instrument resulting from the influence of the market.

Traders who have been analyzing the market for many years can identify trends price changes . They are mainly influenced by the largest market participants. They are usually called majority shareholders, which include central banks, as well as the largest investment funds.

2. Calculation and adjustment of prices

By the way, you can trade financial assets (currency, shares, cryptocurrency) directly on the stock exchange. The main thing is to choose a reliable broker. One of the best is this brokerage company .

If speculators are given free rein, they can collapse the exchange rate. Therefore prices are controlled by Central Banks. They use intervention , which refers to the purchase and sale of foreign currencies. Other tools are also used to adjust prices.

It is important to understand! In fact, traders profitable that Central banks regulate exchange rates. Thanks to control, their fluctuations occur within a certain corridor.

At the same time, speculators have the opportunity to make good profits by concluding transactions in the areas overbought And oversold. In order to determine these levels, traders use various indicators.

In some cases, the Central Bank may refuse to control the exchange rate of its currency. The result could be a drastic unpredictable a jump that leads to losses for many traders.

EXAMPLE: This is exactly the situation that happened with Swiss franc at first 2015 of the year. Up to this point, the currency in question was quite stable. When the central bank stopped fixing its value, the rate changed dramatically.

In a short time, the value of the currency increased by 1 ⁄3. Subsequently, it gradually returned to its previous level, but stability was lost forever.

3. Organization of auctions

The foreign exchange exchange brings together participants in currency trading. Among them prevail brokers And traders.

The first are engaged in creating favorable conditions for conducting. For this purpose, brokers provide speculators special terminals , which allow you to analyze the market and place orders, earning money.

4. Selection of trading participants

Only major market players can influence the value of currencies. However, with the development of the Internet, absolutely everyone has the opportunity to take part in trading. It is enough to open a special account and deposit a minimum amount into it.

But don't forget that beginners very often succumb to emotions. They are often overcome by greed or fear. The result is deposit drain , the market forces out inexperienced traders through natural selection.

The currency exchange is a rather complex economic organism. It performs important functions in the regulation of value, as well as the organization of currency trading.

3. What are currency trading on the stock exchange 📈

The instruments of the currency exchange are currency pairs(for example EUR/USD). Their name consists of two currencies (euro/dollar). To make money on the currency exchange, just open a position on purchase, expecting an increase in value, or on sale while waiting for it to decrease ↓ .

Naturally, most small traders do not know how to correctly predict the further movement of quotes on the market. They open trades when the trend is already actively developing.

Experts note that quite often a market reversal follows an active increase in the number of transactions in one direction. In other words, don't follow the crowd . If there is a change in the direction of movement of quotes, you can get a huge loss.

Many people believe that trading on the foreign exchange market is not difficult. This opinion has developed due to the fact that there is only 2 categories of currency transactions – purchase And sale .

But the main difficulty of trading is the inability of most traders to correctly determine the right moment to enter and exit the market. To trade successfully, you need to know techniques for predicting further price movements.

To select the time of purchase and sale, special techniques are used, which are divided into 2 large groups:

  1. fundamental analysis;
  2. technical analysis.

Predicting exchange rate movements using fundamental analysis implies careful study of the economy as a whole .

Many traders use news trading. They analyze upcoming events in the economies of various countries and, based on them, make forecasts regarding changes in the value of currencies. Often unexpected developments lead to a sharp change in quotes.

During fundamental analysis, the following indicators are monitored:

  • inflation and unemployment rates;
  • GDP size;
  • key rates of Central banks.

Important to keep in mind that fundamental analysis gives good results exclusively over a long-term time period.

Worth considering! Traders who trade for short periods do not carefully study the economic situation. It is more important for them to determine who is stronger in the market - bulls or the Bears. The former make a profit when the value of currencies rises, the latter – when they fall↓. Helps determine the prevailing mood in the market technical analysis.


Conducting technical analysis of currency pairs

Technical analysis requires mandatory comprehensive study of the current market situation . Its purpose is to predict the future movement of quotes based on historical price data.

There are a huge number of technical analysis tools:

  • support and resistance levels;
  • trend lines;
  • various indicators;
  • Japanese candlestick figures, etc.

A beginner, regardless of what time periods he plans to work on, should learn the basics of the two groups of analysis. However, in most cases, technical analysis is easier to understand.

4. What are the advantages of trading on the currency exchange - 4 main advantages ➕

Most traders begin their acquaintance with stock trading with Forex, where the main instruments are currency pairs. This market has a number of benefits before the stock market. Let's take a closer look at them.

1) Availability of leverage

In the Forex market, currencies are sold by so-called lots. This means that you cannot make a transaction with multiple monetary units.

The size of one lot is 1,000 units, therefore, any transaction must be a multiple of one thousand.

Naturally, not all individuals have the opportunity to deposit into their account an amount sufficient to purchase at least one currency lot.

Helps solve the problem leverage . It is a ratio that shows how much of his own funds the trader uses in a transaction, and how much he borrows from the broker. The maximum leverage value usually does not exceed 1:500 .

On the one hand, leverage allows you to earn more by using in trading an amount that exceeds what the trader has available. However, we should not forget that this also increases the riskiness of trading.

EXAMPLE: So, if the shoulder is set at the level 1:10 , and the trader opens a trade using all his funds, the fall at 10 % will lead to complete loss of deposit.

2) Possibility of remote trading

Stock exchanges initially operated on the floor; much later they began to operate online. At the same time, Forex was immediately created as a market operating via the Internet.

There is no need to leave your home to trade currencies. It is enough to install a special program on your computer or any mobile device called trading terminal . After this, you need to carry out an analysis and you can open a deal.

Not only trading is carried out via the Internet in Forex. You can also receive news online and study analytics.

3) 24/7 trading

Trading in the stock market is carried out in sessions; the exchange is closed at night. In contrast, the currency exchange operates 24 hours a day. The market is closed only on weekends. Even during a break in the operation of the currency exchange, the exchange rates of currency pairs change.

Often after a weekend, under the influence of serious events, traders observe a break in the rate of a currency pair. This situation is called gap. However, it occurs less frequently than on the stock exchange. This is due to the fact that Forex is closed only on weekends and holidays.


A clear example of a stock market gap (price gap)

On some days, trading on a specific instrument is not carried out, since the pair includes a currency where a national holiday occurs.

4) Source of additional income

Some traders use in trading short time intervals. They monitor the market on time frames that are several minutes long.

Traders who make money on the slightest price changes are called scalpers, and the strategies they use are scalping. Such speculators are forced to spend a lot of time near the computer.

Not everyone has the desire to devote a huge amount of time to trading. The currency exchange allows you to trade with minimal costs. This can be achieved by working with medium and long term time intervals. Such trading can be a great opportunity to earn extra money.

Thus, Forex has a number of advantages over the stock exchange. Experts recommend for beginner traders to work specifically in the foreign exchange market.


The main stages of conducting currency trading online (in real time)

5. How trading is carried out on the online currency exchange - 5 main stages 📝

Many beginners, when deciding to get involved, do not know where to start. It is worth understanding that you will not be able to achieve stunning success right away.

However, there is a way to speed up the infusion process– just use it instructions from professionals . It describes the stages that a trader will have to overcome at first in order to achieve success.

Stage 1. Choosing a broker

It is important to consider the choice of a brokerage company as seriously as possible. If a trader opens an account with a fraudster, he will almost completely end up without money.

Today there are a large number of reliable brokerage companies operating in Russia. To choose the best broker, you need to take into account not only favorable rates, but also its other characteristics. One of the best is this broker.

When choosing a brokerage company, you should pay attention to the following points:

  • period of work on the market;
  • reputation;
  • availability of a license;
  • insurance guarantees;
  • reviews.

By the way, there is a separate material on our website where it is presented - we recommend that you familiarize yourself with it.

Stage 2. Opening a trading account

Usually, beginners easily open a trading account, since this procedure is quite simple and understandable to everyone.

To open a trading account, you just need to do a few steps:

  1. registration of a personal account;
  2. filling out a short form;
  3. transfer of funds to deposit.

Each broker independently sets the minimum amount with which you can start trading.

Stage 3. Analysis of the market situation

Once the account is opened and funds are deposited into it, the trader can begin trading.

Important to consider! You should not immediately open a deal based solely on intuition. This can only be done when working with .

When concluding transactions to buy or sell currency, you should rely on the results of the analysis. Most reliable brokers conduct special classes using methods of fundamental and technical analysis. Most often they are absolutely free.

Stage 4. Development of a trading strategy

Some advertisements claim that they can offer beginners the optimal strategy that will bring huge income always and on any financial instrument. You shouldn't believe this, there are no such trading plans (strategies).

Trading strategy assumes development of rules for entering and exiting the market. It is important to decide which method will be used to determine when to open trades. In addition, the strategy obliges you to establish under what conditions to record profits and losses.


The next moment becomes trading strategy check. This can be done using historical data on the value of currency pairs. There is another option - demo account . Most modern brokers offer them. This account allows you to check the performance of your trading strategy, without risking real money.

It is also important at this step assess the possible level of risk. To do this, it is assumed that the market went in the direction opposite to the trader’s expectations and did not return back.

Important, so that the loss on one transaction does not exceed 2% of the deposit amount. If this rule is violated, the risk of complete drainage of funds from the account increases significantly.

Stage 5. Start of trading

Only after the trading strategy has been developed and tested can you begin trading online. In principle, there are usually no difficulties with this.


First of all, you should choose transaction volume. Next, if the trader expects further growth, he purchases a currency pair by pressing the button Buy. If the speculator expects the exchange rate to fall, he sells the currency by pressing Sell.

In the trading process, it is important to abandon emotions as much as possible. You should not deviate from the developed trading rules and make transactions under the influence of intuition alone.

By strictly adhering to the plan described above, even a novice trader can start trading. It is only important to treat this as a job without risking your own money.

Don't forget that stock exchange is not a casino , therefore, trading only on the basis of intuition inevitably leads to the loss of the deposit.

6. Who provides access to online currency trading (in real time) - TOP 3 popular brokers 📋

Sometimes choosing a good broker can be difficult due to the presence of a huge number of companies on the Russian financial market. Advice from experts who make up the reviews of the best brokerage companies . Below is one of them.

1) FXclub

Forex Club has been operating in the CIS since 1997, he became the first broker here. Since that time, the Forex Club has absorbed many small market participants and grown into a large group of companies.

Today FXclub offers a huge number of investment programs, strategies and conditions that are suitable for both beginners and experienced traders. Many experts believe that the Forex Club provides the best analytical support for traders.

Among the company's services you can find the following:

  • investment ideas;
  • trading ideas and recommendations;
  • forecasts from a well-known analytical agency;
  • trading signals;
  • daily analysis of the situation on the foreign exchange market.

Customers are stimulated using various bonus programs:

  1. for the first and each subsequent replenishment of the trading account;
  2. interest on the balance of funds on deposit;
  3. for each attracted trader.

By registering on official website of the brokerage company, you can start conducting currency trading online.

2) Finam

One of the most important benefits broker Finam is the presence licenses, issued by the Russian Central Bank. Traders registered with Finam can work not only with currencies, but also with securities issued both in Russia and abroad.

Beginners are unlikely to be able to start collaborating with Finam:

  • Firstly , You will have to pay for most training courses here.
  • Secondly , The minimum amount to open an account is higher than many other brokers.

3) Alpari

Alpari is a broker that provides its clients with quality training programs. First of all, beginners are advised to take basic courses and only then begin to study programs dedicated to specific trading strategies.

The training programs offered at Alpari can be:

  • free (most programs);
  • paid;
  • shareware.

Conditionally paid classes are a unique development of the broker. You can access them by topping up your account with a certain amount. In most cases, it is enough to make a deposit 100 dollars .

However, for more experienced traders there are classes that require a deposit to access. 1000 dollars . At the same time, the money will not be spent even when necessary they can be removed.

When choosing a broker, experts advise beginners to refer to ratings from professionals. In this case, you will not have to analyze a huge number of characteristics for all companies. It is enough to study the description of brokers and choose the right one.


7. How to successfully trade on the currency exchange online - TOP 4 useful tips 💎

Beginners in trading have to simultaneously master a large amount of information - nuances of starting trading, basics of analysis, characteristics of brokers.

In a large flow of information, you can easily get confused and lose money. Helps make the task easier advice from professionals .

To carry out transactions on the foreign exchange market, Trading Participants can register their clients (including non-residents):


TRADING CLEARING ACCOUNTS

Clients are assigned unique client codes within their trading and clearing accounts (TCA).

Goals:
  • maintaining positions
  • risk management
Goals:
  • more flexible management of client positions
  • use of exchange risk management for client transactions

Submission of applications and conclusion of transactions is carried out with the indication of TKS of a certain level.

Wherein position accounting they carry out:


SEPARATE CLIENT

In the foreign exchange market, participants have the opportunity to register a separate client on a separate settlement code with the possibility of subsequently transferring its obligations and collateral from one clearing participant to another. A separate client can only be linked to a 1st level account. The ability to protect the funds of a segregated client has also been implemented: if the need to protect funds is indicated, a refund of funds is possible only to the accounts of such a segregated client.


SPONSORED TRADE ACCESS (SMA)

Trading participants can provide direct access to the foreign exchange market to their clients: SMA is a direct technical connection (with minimal delay) to the trading and clearing system (TCS) of the exchange.

Connection/disconnection is carried out at the request of the bidder and under his control.
SMA access is provided by allocating a personal identifier (SMA_ID) for transmission to the client, which corresponds to the short code of this client, as well as the trade identifier and registration code of the Trading Member who submitted an application for the issuance of this identifier. The Client connects to the TKS access server using the SMA_ID received from the Trading Participant. The client sends instructions to TCS signed by his SMA_ID. Based on these instructions, orders are generated and transactions are concluded on behalf of trading participants, but in the interests and at the expense of clients.


DIRECT MARKET ACCESS (DMA)

DMA is a direct connection of the client to the trading and clearing system using the Brokerage system. The client connection occurs through the trading participant's infrastructure.

820 000

In 2016, the total number of registered clients
in the foreign exchange market 820 thousand.

You can find a brief user guide for working in QUIK.

Launch the QUIK program, connect to any of the servers available to you and go to the “Stock and Foreign Exchange Market” tab, which contains all the necessary tables for working with currencies, including:

  • “Client Portfolio” - a table reflecting the current state of the account;

    • For separate accounts, the currency account valuation is reflected with the USDR settlement parameter
    • For unified accounts, the currency account valuation is reflected with the EQTV settlement parameter.
  • “Money limits” is a table reflecting the current state of funds (rubles and foreign currency). Foreign exchange market funds are reflected in the “Money Limits” table in the USDR group.

Attention: currency positions are displayed in pieces of currency units, and trading in the order book is displayed in lots (one lot contains 1000 currency units).

Placing an order to buy/sell currency

To submit an application for the purchase/sale of currency, use the standard application entry form:

In the application entry window, you must fill in the standard fields:

  • Buying/selling;
  • Price;
  • Quantity in lots;
  • Trading account;
  • Client code.

By clicking the “Yes” button, the application is sent to the trading system.

Currency pairs TOD and TOM

Clients can make transactions with the dollar, euro, yuan, pound sterling, Hong Kong dollar and Kazakhstan tenge in two modes:

TOD (today) - settlements are carried out on the day the transaction is concluded after the end of trading.
TOM (tomorrow) - settlements are carried out on the next business day after the transaction is concluded.

TOD (today):

  • USD/RUB, trading is conducted from 10:00 to 17:45 Moscow time (T+0);
  • EUR/RUB, trading is conducted from 10:00 to 15:00 Moscow time (T+0);
  • CNY/RUB, trading is conducted from 10:00 to 10:45 Moscow time (T+0);
  • EUR/USD, trading is conducted from 10:00 to 15:00 Moscow time (T+0);
  • JPY/RUB, trading is conducted from 10:00 to 17:45 Moscow time (T+1);
  • USD/CNY, trading is conducted from 10:00 to 10:45 Moscow time (T+0).

TOM (tomorrow):

  • USD/RUB, trading is conducted from 10:00 to 23:50 Moscow time (T+1);
  • EUR/RUB, trading is conducted from 10:00 to 23:50 Moscow time (T+1);
  • CNY/RUB, trading is conducted from 10:00 to 23:50 Moscow time (T+1);
  • GBP/RUB, trading is conducted from 10:00 to 23:50 Moscow time (T+1);
  • CHF/RUB, trading is conducted from 10:00 to 23:50 Moscow time (T+1);
  • EUR/USD, trading is conducted from 10:00 to 23:50 Moscow time (T+1);
  • HKD/RUB, trading is conducted from 10:00 to 23:50 Moscow time (T+1);
  • KZT/RUB, trading is conducted from 10:00 to 23:50 Moscow time (T+1);
  • USD/CHF, trading is conducted from 10:00 to 23:50 Moscow time (T+1);
  • USD/CNY, trading is conducted from 10:00 to 23:50 Moscow time (T+1);
  • USD/KZT, trading is conducted from 10:00 to 23:50 Moscow time (T+1).

Margin trading

All clients, as part of trading on the Foreign Exchange Market, are given the opportunity to carry out trading operations using borrowed funds. The amount of leverage provided is determined based on the specified risk rates.

Risk rates:

Risk rates reflect:

  • Market volatility in general. The more volatile the market, the higher the risk of changes in the value of the security/currency, and therefore the higher the risk rate;
  • Liquidity (volatility) of a particular security/currency. The less liquid the security/currency, the more volatile its price, and therefore the higher the risk rate.

Risk rates are divided into initial risk rates, which are used to calculate the initial margin, and minimum risk rates, which are used to calculate the minimum margin.

Using the initial risk rate, you can calculate what maximum leverage is available to the Client for operations:

Since the initial risk rate for the currency is 12.5%. This means that the Client can make transactions with currency with a leverage of 1 to 8.

Attention: if the leverage number in QUIK = “0” or ends with “0” (“10”, “20”, “30”, etc.), then your leverage is NOT connected, and you can only trade with your own facilities!

How are risks controlled when using leverage?

If you use margin lending, then you need to control the following:

  • how the portfolio value and the size of the initial margin relate;
  • how the portfolio value and the size of the minimum margin relate.

Portfolio value- this is the value of liquid assets in the portfolio on the Client’s account minus portfolio liabilities. Liquid assets include cash and currency that are on the Client’s account, as well as those that may be credited to the Client’s account as a result of the execution of concluded transactions. That is, the value of the portfolio is the value of the Client’s own assets in the account.

Initial Margin allows you to assess the risk of opening new positions. Since the Client can only risk his own assets, the initial margin should not be greater than the value of the portfolio. If the initial margin exceeds the value of the Client’s portfolio, then:

  • firstly, the Client will not be able to open new positions aimed at increasing the margin;
  • secondly, the broker sends a notification to the Client that the value of the portfolio has become less than the initial margin.

If the client’s own funds are insufficient, then for instruments for which there are insufficient funds for settlements, SWAP transactions to transfer client obligations for delivery on date T+1.

Checking the sufficiency of funds in the client’s account on the UTS for the execution of TOD transactions is carried out:

  • by EURRUB at 15:00 Moscow time;
  • by USDRUB at 17:45 Moscow time;
  • by CNY/RUB at 11:00 Moscow time.

Example: 100,000 USDRUB_TOD was purchased from a client. The initial risk rate is 12.5%, that is, the client's account has 12.5% ​​collateral. There are no available funds. At 15:00 the client had not added funds. BCS makes SWAP transactions on 87.5 lots of the instrument (87.5 lots of USDRUB_TOD are purchased from the client and 87.5 lots of USDRUB_TOM are sold at the same time). The difference in the prices of TOD and TOM sales/purchase transactions constitutes the standard margin lending fee.

If a client opens a TOM position and closes it the next day with a TOD transaction, there will be no SWAP transactions (i.e., in this case, the use of leverage will be free).

Online broker ITinvest announces the second important stage in the implementation of two-level direct access to trading on the foreign exchange market of the Moscow Exchange. Delivery trading mode is now available for all categories of clients: through his brokerage account, the client can independently buy and sell foreign currency on the exchange market, as well as withdraw it to his own bank account. Thus, ITinvest clients can carry out a full range of trading and conversion operations, previously available only to banks participating in foreign exchange trading.

The first stage of the service was the opening in February 2012 of non-deliverable access to exchange currency trading. Then the company's clients were able to independently trade foreign exchange instruments, carry out speculative transactions and arbitrage transactions (currency/futures contract). And ITinvest received an award from the Moscow Exchange as a “pioneer broker” in this market segment.

Now any private investor or legal entity can carry out purchase and sale transactions with liquid instruments of the foreign exchange market: dollar-ruble, euro-ruble pairs with settlements “today” and “tomorrow”. Investors can diversify their investment portfolio, hedge currency risks, and save on conversion. Additional terms and conditions for the delivery mode can be found on the company’s website.

“As expected, the currency trading service on the Moscow Exchange has developed rapidly. In our company, the greatest interest arose among arbitrageurs and those who play on changes in exchange rates. For high-frequency traders, the foreign exchange market is a new, very profitable segment. Together with the Moscow Exchange, we have developed several different types of technical connections to trading to suit every taste and budget. Retail clients are also actively mastering new tools, which is confirmed by the statistics of the LCI competition on foreign currency, says Vladimir Tvardovsky, Chairman of the Board of ITinvest. – The development of the foreign exchange market is a priority for us. Our financial engineers will be offering additional products and services related to trading in this market in the near future.”