Margin and Leverage
Margin is the amount of collateral needed to cover any credit risks that might occur during your trading. The rate of margin is determined by Equity divided by margin used. It is recommended that you either close off positions to free up liquidity or add additional funds to expand the liquidity available.
Margin is expressed as the percentage of position size (e.g. 1%), and the only real reason for having funds in your trading account is to ensure a sufficient margin. On a 1% margin, for instance, a position of $1,000,000 will require a deposit of $10,000. The margin in your trading account needs to be above the margin call level in order for you to be able to open new trades unless the new trades will result in your trading account is fully hedged.
At Hextra Prime you can control your real-time risk exposure by monitoring your used and free margin. Together, used and free margin forms your equity. Used margin refers to the amount of money you need to deposit to keep the trade (for example, if you set your account at a leverage of 100:1, the margin you need to set aside is 1 percent of your size). Free margin is the amount of money that you left in your trading account and fluctuates according to your portfolio equity; you can open new positions with it, or absorb any losses.
Using leverage means you are able to trade positions that are greater than the sum of money in your bank account. A sum of leverage is expressed as a ratio, for example, 50:1, 100:1, or 500:1. If you have $1,000 in your trading account, and selling 500,000 USD / JPY ticket sizes, the leverage would be 500:1.
How will the sum you have at your disposal be trade-able 3000 times? You have a free short-term credit balance at Hextra Prime if you transact on a margin: this helps you to buy an amount that exceeds your account value. Without this grant, you are only able to purchase or sell $1,000 tickets at a time.
On the one hand, you can make a substantial profit by using the leverage, even from a relatively small initial investment. On the other hand, if you fail to apply proper risk management, the losses can also get dramatic. That is why Hextra Prime offers a leverage package that lets you select your desired level of risk.
Hextra Prime shall monitor the leverage ratio applied to customer accounts at all times and retains the right to make adjustments to and amend the leverage ratio (i.e. decrease the leverage ratio), at its absolute discretion and without warning on a case-by-case basis, and/or on all or any customer accounts as Hextra Prime considers to be necessary.
Leverage On Equity
Leverage for your accounts depends on the type of account you are opening and the amount of equity in your account. Margin requirements do not change during the week, nor do they widen overnight or at weekends.
Hextra Prime offers following leverage:-
1:5000, 1:2000, 1:1000, 1:500, 1:200, 1:100, 1:50, 1:1
|1 to 500||5000|
|501 to 2000||2000|
|2001 to 5000||1000|
|5001 to 20000||500|
|20001 to 50000||200|
|50001 and above||100|
Margin Call Level
If your account equity drops below 50% of the margin needed to retain your open positions, you need to be alert with the margin call level warning that you do not have enough equity to cover open positions. It is recommended that you either close off positions to free up liquidity or inject extra funds to increase the available liquidity.
Stop Out Level
The level of stop-out relates to the level of equity at which the open positions automatically close. Our stop out level is at 30% of the margin. If you reach stop out level, positions will start to be automatically close starting from the least profitable positions.
Negative Balance Protection
Although each client is entirely responsible for controlling their trading account operation, Hextra Prime follows a policy of negative balance protection to ensure that the overall potential risk does not surpass the account equity. In case if your account equity goes to negative, Hextra Prime will cover the negative amount. Negative balance protection means that you can’t lose more than your deposited money, i.e. you won’t owe money to the broker.
IMPORTANT NOTES 1: Kindly note that the Negative Compensation Rules as the Negative Balance Protection program execute at the 51st minutes every hour server time, automatically. In case if clients’ account got stopped out, and the clients want to redeposit again, kindly wait for balance to reset automatically before making the deposit. In case if you deposited without notifying us, the action is at clients’ own discretion and we are not responsible to give the compensation for the negated amount.
IMPORTANT NOTES 2: Kindly note that the Negative Compensation Rules will automatically triggered if your account EQUITY has become negative, meaning that both BALANCE and CREDIT has been used up.
IMPORTANT NOTES 3: In case if your account has been only negative in BALANCE, but not in CREDIT, meaning that the EQUITY is still positive and tradable, please do not do any transaction. Please request for manual balance and credit reset, before you do any new deposit to your account.
Execution and Liquidity
Normal Trading Hours
For day traders the most active hours are between opening the London markets and closing the US markets. The peak trading time is when the US and London markets converge from GMT 1 pm-GMT 4 pm. Usually, these hours are when the largest amount of trades occurs and are considered the most desirable in terms of trading opportunities.
The key sessions for traders are the markets in London, the US, and Asia. Between summer and winter months, market opening and closing times change, as many countries transition to/from daylight savings time (DST). Here is an overview of the trading sessions that will help you make the most of the market:
|Asia||Tokyo/Hongkong/Singapore||23.00 – 08.00||00.00 – 09.00||JPY|
|Europe||Frankfurt/London||08.00 – 16.00||09.00 – 17.00||CHF, EUR, GBP|
|America||New York/Chicago||13.00 – 21.00||14.00 – 22.00||CAD, USD|
|Pacific||Sydney||22.00 – 06.00||23.00 – 07.00||AUD|
Metatrader 4 Server Time
Time in MT4 is shown as Greenwich Mean Time (GMT+2) or (GMT)+1. During Daylight-Saving Time, our server time is at 2 hours forward of Greenwich Mean Time (GMT +2). During Standard (Winter) Time, the server time is 1 hours ahead of GMT (GMT +1).
In Greenwich Mean Time (GMT), the transition to Daylight-Saving Time takes place on the last Sunday of March at 01:00 GMT, moving the clock ahead an hour. The move back to Eastern European Standard Time takes place on the last Sunday in October at 1:00 GMT, moving the clock back an hour.
5 or 6 and 7 Daily Candles
The GMT offset is either +1 or +2 depending on whether Daylight savings time is in effect or not, however, Hextra Prime provides the accurate 5+1 daily candle week for all clients. 1 extra candle was for the Sunday Bar opening time during wintertime at GMT+1. Kindly note that for instruments like cryptocurrencies, the chart may have 7 daily candles as they are traded 24/7.
When the liquidity providers pricing in online Hextra Prime switch (late Sunday, early Monday session start) and offline switch (Friday session end) the spreads can be wider as the liquidity providers reset and liquidity is low.
Daily Trading Break
There is a daily break in trading from depending on the type of instruments and platform time. Clients are able to see the prices streaming during this break. However, no orders can be placed and preexisting orders cannot be executed during this time.
No Re-quotes & No-Rejection
Hextra Prime has been leading the implementation of no re-quotes and no denial of orders policy. We give 100 percent order execution with almost all our orders being executed lighting fast within seconds.
Holidays & Weekends Execution
Should market gaps emerge from a Friday near a Sunday opening, Hextra Prime will execute all pending limits or stop orders for the corresponding place size at the first market price available.
Volatile or Illiquid Markets Execution
Thanks to its alertness and business alliances with numerous liquidity providers, Hextra Prime aims to serve you best by executing orders at the best available market price, even during unpredictable market conditions.
Please notice that you can only keep up to 200 positions open simultaneously (per client and with pending orders included). The total lot-sizing restricted per ticket is 50 lots.
Through our combination of the tier-1 bank, non-bank, and ECN liquidity and by maintaining fill ratios with our Lps and using ‘no last look’ when supported, we’re able to improve execution and reduce slippage for our traders.
Slippage generally occurs for 2 reasons:-
– Either due to a delay between an action and its execution, or
– Due to a lack of liquidity depth resulting in VWAP (volume-weighted average price) slippage.
Hextra Prime is dedicated to ensuring minimal slippage for all of its client
The core aim of Hextra Prime is to provide low-cost access for traders to global markets through market-leading pricing and execution. By integrating tier-1 bank, non-bank, and ECN liquidity, we can stream extremely tight spreads to traders and deep liquidity-reducing your trading costs.
Spreads from 0.1 pips refer to the capacity of a broker to sell a commodity with a 0.1 pips range. Normally this can only be achieved if a variety of requirements are met, including an aggregated price feed or ‘ECN’ feed (see ECN page) and no spread floor in place, i.e. no minimum spread.
Hextra Prime passes on the prices it receives from its liquidity providers to traders. This means our spreads are variable and fluctuate in line with market liquidity and volatility.
Hextra Prime does not add any markup on spreads, however, we charge commissions on all instruments available depending on account types, whether Standard ECN or Raw ECN.
Swaps & Financing Fees
A swap is an interest paid or received for holding a position over rollover/end of the day. On a currency, pair interest is paid on the currency sold and received on the currency bought. In addition, swap rates are driven by the inter-bank spread and cross-currency basis.
The financing fee is the cost you pay to hold a position on CFD trades. It helps traders gain access to leveraged products while only having to pay an initial margin to open the position. As such, the financing fee reflects the cost of borrowing or lending the asset(s) which relate to your position(s). In addition, if dividends are paid out on the relevant index, then long positions will receive a positive adjustment, while short positions will receive a negative adjustment.
For swap rollovers, Hextra Prime debits or credits the accounts of customers and manages rollover interest for all positions left open after 22:00 GMT, the regular cutoff time for banks. Swap charges details will be available at our MetaTrader 4 platform.
22:00 GMT is considered by most brokers to be the start and end of a trading day. Any positions that remain open at GMT sharp at 22:00 are subject to rollover and will be left open overnight. Positions opened at 22:01 are not subject to roll-over until the next day, but if you open a position at 21:59, a roll-over at 22:00 GMT is required. A credit or debit will appear on your account within one hour for each place that is open at 22:00 GMT.
Even though there is no rollover while the markets are closed on Saturdays and Sundays, banks still measure interest in any place left open over the weekend. To level, this time gap, on Wednesdays Hextra Prime is charging a 3-day rollover fee.
Hextra Prime understands that trading conditions should be adapted to individual trading needs. Thus for Muslim countries, we offer swap-free accounts, which implements no swap or rollover interest on overnight positions which is against Islamic faith. Now with us, Muslim traders can take positions without being swap charged or credited an overnight interest.
For selected regions, Hextra Prime provides free swap accounts. No regular crediting / withdrawal of funds/losses associated with swap-operations may occur on swap-free accounts. This will allow the client to earn no extra income and will not incur any additional losses. These accounts are opened automatically if provided by the region through our system
However, should it be found that any client has violated the “swap-free” privilege, Hextra Prime shall maintain the rights to restore the privilege of all trading accounts of the client within its member region and charge swap. In this case, misuse is, but not restricted as well, a situation where a large portion of the transactions on the client’s trading account has a negative swap that Hextra Prime does not charge, in compliance with the “swap-free” status.
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Legal Announcement: Hextra Prime is incorporated in Saint Vincent & the Grenadines as a licensed Business Company under Financial Services Authority with registration number 25989 BC 2020. The website is owned and operated by Hextra Prime group of companies.
General Disclaimer: Trading Forex, CFDs, and any financial derivative instruments on margin carries a high level of risk and may not be suitable for all investors, as you could sustain losses. The Company under no circumstances shall be liable to any persons or entity for any loss or damage in the whole or part caused by, resulting from, or relating to any transactions related to CFDs. Hextra Prime assumes no liability for errors, inaccuracies, or omissions, does not warrant the accuracy, completeness of information, text, graphics, links, or other items within these materials.
Risk Warning: Trading Leveraged Products such as Forex and Derivatives may not be suitable for all investors as they carry a high degree of risk to your capital. Please ensure that you fully understand the risks involved, taking into account your investments and level of experience, before trading, and if necessary, seek independent advice.
Regional Restrictions: Hextra Prime currently only accepts clients from Asia & Pacific confederation specifically from South East Asia. Hextra Prime does not provide services to residents of the Americas region, Arab states, CIS countries, and European nations.