FAQs Trading

 

What are your trading hours?

Tier1FX normal trading hours for most instruments are from approximately 21:00h GMT* on Sunday to approximately 21:00h GMT* on Friday.

pencil NOTE: While most instruments are tradable without interruption, some have trading breaks. For detailed information, please click here .

*Subject to Daylight Saving time.

Are you a Market Maker?

No, we are an STP broker.

This means that we offer our clients direct market access, interbank grade spreads and a fast, reliable execution with no dealer intervention and no requotes.

Moreover, being an STP broker eliminates the innate conflict of interest that may occur between Market Makers and Clients.

launchapp small More on STP vs Market Maker .

What is EPM Stop Loss?

Tier1FX EPM (Equity Protection Management) is a remarkable feature that gives you more reliable and flexible control over risk and exposure.

You can set up your own equity drawdown limit, ensuring a more effective protection of your investments. Once your equity falls to the EPM Stop Loss level you have specified, the system will automatically close all open positions and will cancel all pending orders.

launchapp small Read more on Tier1FX EPM Stop Loss .

How does the “Close All Trades” option work?

Clicking the “Close All Trades” button on your Client Portal instantly closes all open positions on your account at market and cancels all pending orders.

In addition, managed accounts, which are part of a MAM, are automatically removed from it. This enables you to close all positions on your account yourself and leave the MAM immediately, at any time.

Should you wish to join the MAM again, please contact our Support Team .

What leverage do you offer?

Leverage on T1 trading accounts is determined by account equity, as follows:
Equity
Max Leverage
<25,000
1:200
25,000 – 250,000
1:100
>250,000
1:50

How do I calculate Margin?

Margin is calculated as Positions Value in account currency terms, divided by Leverage.

Example A:
Trading account currency: EUR
Currency pair traded: EUR/USD at 1.34500
Lot Size traded: 1.00 (100,000 units)
Leverage: 1:200 Margin = EUR100,000 / 200 = EUR 500

Example B:
Trading account currency: USD
Currency pair traded: EUR/USD at 1.34500
Lot Size traded: 1.00 (100,000 units)
Leverage: 1:200 Margin = EUR100,000 * 1.34500 / 200 = USD 672.50

launchapp small See more on Margin Requirements and Contract Specifications .

What is your Stopout Level?

Once your Margin Level reaches or falls below 100%, (Equity becomes equal to or less than 100% of Margin), the system will automatically begin to close your open positions, starting with the most unprofitable.

In order to limit your exposure, once your Margin Level falls below 100%, you will not be able to place new trades and all pending orders will be cancelled.

Will I get a Margin Call?

No, we do not make Margin Calls. Instead, we have an automated multi-level stopout system that also gives you the option to set up your own EPM Stop Loss level .

gray-square The first “red flag” will be triggered once your equity becomes equal to the total margin requirement (Equity = Margin): the system will automatically disable trading, i.e. you will not be able to open new trades.

gray-square As soon as your equity becomes equal to 100% of Margin, in order to reduce exposure, the system will begin to close your open positions, starting with the most unprofitable.

gray-square If you have set up your own EPM Stop Loss, the system will follow your pre-set instructions for the EPM level specified by you.

pencil NOTE: Despite the multi-level equity protection system that T1 has in place, it is still possible that your account goes into negative balance (i.e. your losses exceed your funds).For more details on “Debit Risk”, please refer to point 9 of the Tier1FX Limited Risk Disclosure Statement.

How do I calculate profit and loss?

While there are various online calculators which can help you calculate Profit, Loss and Pip Value, we feel it is useful and important to understand how that actually work.

Let’s take the following trade as an example:

You think that the euro will raise in value against the US dollar and decide to buy 100,000 euros (or in other words, 1 standard lot EUR/USD) at 1.35670. This will cost you 100,000 * 1.35670 = USD 135,670.00.

Let’s assume that you were right and the price of the euro against the US dollar increased to 1.35785, which gives you a profit of 115 points or 11.5 pips (1.35785 – 1.35670 = 115).

If you decide to close your position at this point, what you are actually doing is selling your 100,000 euros at the current price of 1.35785, which means that you’d now have USD135,785.00.

Your total profit from this trade will be $135,785.00 – $135,670.00 = $115.00

This amount will be automatically converted into your trading account’s currency, in the event that it is held in a currency different than USD.

What is the difference between Balance and Equity?

Balance shows the funds in your account, including the profit and loss from closed trades.

Equity is a dynamic value and takes into consideration the profit and loss from open trades at the time.

Equity = Balance +/- Profit/Loss from currently open trades.

What is the difference between Margin, Free Margin and Margin Level?

Margin (M) represents the amount of money that you need in order to enter a trade.

Margin Level (ML) shows the ratio between your account’s Equity and Margin. ML = E/M *100

Free Margin (FM) tells you how much funds you have left to open new trades. FM = Margin – Equity

As a simple rule, if Equity = Margin, then Margin Level = 100% and Free Margin = 0 and therefore you will not be able to place new trades.

launchapp small See more on Margin Requirements .

Can I lose more than I have in my account?

Despite the multi-level equity protection system that T1 has in place, it is still possible that your account goes into negative balance (i.e. your losses exceed your funds).

For more details on “Debit Risk”, please refer to point 9 of the Tier1FX Limited Risk Disclosure Statement .

What is the difference between Instant and Market Execution?

With Instant Execution, orders are executed at the price predetermined by you when placing your order, if this price is still available. Since markets move fast, the price you specified may no longer be available by the time your order reaches the server. In such cases, you would experience a “re-quote”, where the system will reject your trade and offer you a new price at which it can be filled. This process may be repeated several times, depending on market volatility and broker execution speed.

Market Execution guarantees that the price will never be re-quoted, as your order is filled at the current market price. One advantage of Market Execution is that your orders will always* be filled and you will enter the market with no delays caused by re-quotes. Please note however that the price at which your order is filled may be different to the one you specified, as the entry price depends entirely on the current market price. As an STP broker, Tier1FX offers Market Execution, guaranteeing that your orders are always filled at a fair and transparent market price, with no dealer intervention, re-quotes and delays.

*Subject to market conditions

Can I place SL and TP at the same time I place a new trade?

Our Market Execution guarantees that your order will be executed at the best market price available, with no requotes. As the entry price may vary depending on market, it is not possible to set Stop Loss and Take Profit at the time you are placing a new order.

You can set your Stop Loss and Take Profit as soon as the trade is placed.

Do you guarantee a Stop Loss?

As an STP broker, Tier1FX offers Market Execution. This guarantees that your orders are always* filled at a fair and transparent market price, with no dealer intervention, re-quotes and delays.

As all orders, including Stop Loss, are filled at the current market price, it is possible for your trade to be closed at a level other than your pre-set stop value. This is known as “gapping”: in fast moving markets, prices may gap straight through your pre-set order price.

Stop Loss orders are designed to automatically cut losses if market moves against you. For this reason, once your SL has been triggered, your trade will be closed at the next available market price in order to prevent further losses on your account.

As a result, while execution on your SL is guaranteed, the actual close price may differ from the one you have specified.

*Subject to Market Liquidity

Can slippage occur on my account?

Our Market Execution guarantees that your order will be executed at the market price available, with no re-quotes.

This means however that the price at which your order is filled may be different from the one you specified (i.e. slippage may occur), as the entry rate depends entirely on the current market movement.

Both MT4 and JForex offer you enhanced slippage control. You can set the Maximum Deviation (MT4) or Maximum Slippage Level (JForex) with which you feel comfortable and orders will be rejected if market price moves past your maximum slippage level.

What is the maximum number of open trades/volume I can trade?


gray-square The maximum lot size per trade for most pairs is 50 lots – the equivalent of 5,000,000 units of the base currency. The max lot size for Crude Oil (XTI/USD), Brent (XBR/USD) and Natural Gas (XNG/USD) is 20 lots.

gray-square There are no limitations of the number of open trades, regardless the lot size traded.

Will the Trailing Stop be triggered if I switch off my computer?

If you are using MT4 or WebTrader, the Trailing Stop is only saved on your terminal and will not be executed if you are not logged into your platform or your computer is switched off.

JForex desktop platform offers server-side Trailing stop, which means that it will be triggered even if your computer is off.

How close to the current market price can I place pending orders?

Pending orders can be placed as close as 0.1 pip from the market price.

Can I place/modify/close trades over the phone?

Our Support Team is ready to assist you within market hours and in case of emergency, when you have no other option to close your open trades.

Please note that we can only execute phone orders to close open positions. Unfortunately we cannot accept phone orders to open new positions or place contingency (stops, limits, MIT, OCO, etc).

Our order desk can be reached by calling +356 2327 3000.

The following steps should be followed to transact via the telephone:
1. You will be asked to provide your account number/login, full name and Secret Question Answer.
2. Once your identity is confirmed, you will be asked to provide the ticket number of the trade you wish to close.
T1 Representative will confirm the details of the trade (e.g. “This is a short position for 2 mini lots
EUR/USD”) and will provide an indicative market price.
3. If you wish to close all open trades, you must say so. In this case, the T1 Rep will confirm the details of
all open trades
4. It is your responsibility to ensure that the T1 Rep understands your order and to correct him/her if the
order read back to you is not what you want.
5. You must confirm that you authorize T1 to close the trade(s) and the T1 Rep will proceed to do so.
6. Once trade(s) is/are closed, the T1 Rep will confirm that “Ticket #123456 0.2 EUR/USD is closed at 1.2345”.
7. You will receive the trade closure details report as a ticket on the Service Desk of your Client Portal. The ticket Subject will be
“Phone Order to Close Trade” and will contain the ticket number, order details and closing price. The ticket status will be “Closed”.

EXAMPLE:
Client: Hello, I wish to close a trade.
T1 Rep: Hello, May I have your full name, account number and Secret Question answer please?
Client: My name is John Smith, account 12345, Secret Question answer “password”.
T1 Rep: Ok, thank you. What is the ticket number of the trade you wish to close?
Client: Ticket number 12345678
T1 Rep: Ok, the trade in question is a short position for 2 mini lots EUR/USD, is that correct?
Client: Yes, that is correct.
T1 Rep: Current market price is 1.2345. Do you want to close the trade?
Client: Yes, please close it.
T1 Rep: Ticket number 12345678 closed at 1.23334. You will receive a Service Desk ticket with the order details.

Please note:
**In case of unsuccessful “Secret Question & Answer” authorization or if you refuse to go through this process, your instructions will not be accepted.
**Your instructions may need to be given in English.

What is the difference between Buy Stop and Buy Limit and Sell Stop and Sell Limit?

All four are types of pending orders or, in other words, orders to open a new trade when the price reaches a predefined level.

Buy Stop and Buy Limit will be triggered when the Ask price reaches the specified level and Sell Stop and Sell limit will be filled at the Bid price.

  • Buy Stop – an order to open a Buy position at a price higher than the current price level;
  • Sell Stop – an order to open a Sell position at a price lower than the current price level;
  • Buy Limit – an order to open a Buy position at a lower price than the current price level;
  • Sell Limit – an order to open a Sell position at a price higher than the current price level.

As a rule, Stop orders are placed when the current trend is expected to continue and Limit orders when the market is expected to move in the opposite direction.

I had a short position and my Stop Loss was triggered but I can see on the charts that the price never reached my Stop Loss level.

As this was a Sell position, your Stop Loss had to be triggered at the Ask price.

Remember that the price shown on the MT4 charts is the Bid price and the spread needs to be added to it in order to obtain the actual Ask price at the time.

Can a trade be closed with loss if Take Profit is triggered?

Yes, this is possible. If you have a Buy position, for example, you need to place your Take Profit above the current market price.

If you are placing Take Profit when your trade is in loss and do not set it not far enough above the current market price (in other words, if you place it below the opening price of the trade), it will act as a Stop Loss and your trade will be closed with a loss.

How does a Trailing Stop work?

You can set up a Trailing Stop on MT4 by right-clicking on an open trade, selecting “Trailing Stop” and clicking on the points value required.

As soon as you do this, the system starts to automatically check with each new incoming quote whether the trade is profitable. Once the profit in points becomes equal to or higher than the Trailing Stop level you have specified, the terminal automatically places a Stop Loss at that same specified distance from the current price (in other words, at your open price).

If the price becomes profitable for your trade direction, the Stop Loss will follow it with the same predefined distance.

If price goes in the opposite direction, Stop Loss will not be modified and will be eventually triggered if market continues moving in that direction.

Do you offer partial fills?

Yes, we offer partial fills on JForex.

Is Hedging allowed?

Yes, you can hedge your position at any time in order to protect a losing position or to balance your equity, as long as your Free Margin is positive (Margin Level>100%).

When all positions are fully hedged, the Margin Requirement will be zero.

Please note however that even if your positions are fully hedged, you are still responsible for the spread cost and stopout can still be triggered.

Is Scalping allowed?

Yes, scalping is allowed and welcome, with no limitations on the number of trades placed or the number of pips in profit/loss.

In addition, pending orders can be placed at as close of market as 0.1 pips.
pencil Note: Tier1FX does not allow arbitrage.

Can I use Expert Advisors?

Yes, you can backtest, optimise and apply the EAs* of your choice with no restrictions.

While EAs are available on both MT4 and JForex, please note that JForex is a Java based platform and EAs need to be in Java language. If you’d like to use your MT4 EA on JForex, please contact our Support Team for assistance.

*Choosing and using a robot/EA is entirely at the trader’s discretion.

When is rollover applied?

Rollover is applied daily at 21:00 GMT (23:00 on MT4 platform).

To see Rollover rates by instrument, click here .

Why are Rollover rates higher on Wednesday?

Rollovers applied on Wednesday at 21:00 GMT are multiplied by three (3), in order to compensate for the weekend.

This is because Forex spot transactions settle two (2) business days from the date of the actual trade.