A gap in the market can occur in a heavy increase in the market after a news release or even between the close and re-opening of the market, which could have a significant impact on the execution of a pending order. Clients should be educated of the risks associated with market volatility, especially near an important release or over the weekend. CMG offers both positive and negative slippage. During a gap in the market, you may lose more than your initial stop, but please keep in mind that the trade was closed at the best available rate. This also applies when there is a market gap and you gained more than your initial limit target.

Rollover time is around the New York closing time (17:00 EST).

Hedging is when you have long and short positions in the same instrument open simultaneously. If you’re fully hedged, you will have long and short positions open in equal volumes.

Having hedged positions will reduce your total margin requirement. For fully hedged positions no margin will be required.

In case the market moves against your positions and your Equity falls below zero, your positions will be stopped out by our Automatic Risk Management System, beginning with the position holding the greatest loss.

A re-quote occurs when you request to execute an order at a specific price that is no longer available and you will be offered a new quote that you will need to accept in order to place the trade.

Note that this can happen during fast-moving markets.

A take profit order is used to lock in profits if the market moves in your favour. If the price reaches a take profit level, the position will be closed automatically.

Take profit orders are useful when you are unavailable to monitor your open positions.

If you take a long (buy) position your take profit level will be higher than the price at which you bought. If you take a short (sell) position your take profit level will be lower than the price at which you sold.

Stop loss orders help you to minimise losses in the event the market moves against you. If the price reaches a stop loss level, the position will be closed automatically on the next available market price.

You can add a stop loss in the New Order window when you place a market or pending order.

If you took a long (buy) position your stop loss will be lower than the price at which you bought. If you took a short (sell) position your stop loss will be higher than the price at which you sold.

On CMG MT4, one standard “PIP” is the fourth decimal place for most currency pairs in the market (or second decimal places for JPY pairs).

Slippage can occur when orders are filled away from the desired price due to gaps in the market.

This can sometimes happen because market prices can be very volatile or liquidity can be thin. In these scenarios, orders cannot always be filled at the exact price, but at the next available price.

If you want to place a pending order, please open the “Order” window in one of the following ways:

• Right click on the Market Watch window or on the Trade tab of the terminal window and select New Order; or
• Double-click on the currency pair in the Market Watch window; or
• Click on the button New Order in the toolbar; or
• Right-click on the chart window and select Trading and select New Order.

Select the order type Pending order from the drop-down list and specify your preferred opening price as well as your stop loss and take profit levels if applicable.

A BUY/SELL stop order is an instruction to deal if the price moves to a less favourable level than where it is in the market at the moment (note: It is less favourable to buy at higher prices and to sell at lower prices). A stop order is a request to buy at a price higher than the current market price or a request to sell at a price lower than the current market price.

A BUY/SELL limit order is an instruction to deal if the price moves to a more favourable level than where it’s in the market at the moment. Those orders are called ‘improvement orders’ as well. A limit order is a request to buy at a price lower than the current market price or to sell at a price higher than the current market price.

A pending order is the trader’s commitment to buy or sell an instrument at a specified price sometime in the future.

Most commonly, you can use a pending order to create an order that will be executed automatically if the market reaches a certain level. The order essentially contains two variables – price and duration. You can specify the price at which you would like to buy/sell an instrument and also specify the duration that the order should remain active.

You can select from four different pending order types.

• For a Buy Limit the current market has to be offered at, or above, your chosen level.
• For a Sell Limit the current market has to be bid at, or below, your chosen level.
• For a Buy Stop the current market has to be offered at, or below, your chosen level.
• For a Sell Stop the current market has to be bid at, or above, your chosen level.

The maximum volume you can trade depends on the type of account you hold and your available margin.

A market execution order is one that is executed at the best price available in the market at that time. There are no re-quotes, but the price will not necessary be the one you saw on the screen when you placed the order.

The price the order is filled at may sometimes differ from the price seen on the platform because:

• the market may have moved on and your specified price is no longer available anymore, or
• the trade volume you requested may be larger than the volume available in the market at the best tradable bid/offer price shown on the screen.