Dear Fort Financial Services customers! We have prepared a tutorial video for you about how to start trading with the tools group CFD on futures.
You can also find out more about executing orders in our Education section: “Trading with CFD on futures and ETF”, or right after this video.
First of all, pay attention to this point: each tool in this group has not one, but two tickers, which are located at the terminal in the Market Watch window.
The first ticker is a designation of the instrument (for example, 6EH4). You can find these indicators in the Contract Specifications on our website. This ticker displays the last price in MT4 (last market transaction for this contract). Using this ticker you can open and close orders.
The 2nd part of this ticker 'H4' displays the month and the year of the expiration date 'March 2014'.
The second ticker has the suffix #I (for example, 6EH4#I). This ticker provides bid and ask prices. Traders focus on these prices when opening a position.
Below is a list of the types of orders that you can open on futures contracts:
Buy by market — By choosing this type of order, you will give an order to buy a certain number of lots of the contract, for example, 6EH4. Your transaction is immediately executed at the Ask price, that is seen on the information ticker 6EH4#I.
Sell by market — This is the reverse type of order, to sell a contract at market price. Likewise, your transaction will be executed immediately and it will happen at the Bid price, which can be found on the contract with #I.
Buy Limit — This is the fulfillment of a transaction at the exact price you specified in the order. This will happen when the price of the tool crosses the marked price level at 1 tick down.
Sell Limit — This also guarantees accurate fulfillment at the price you declared, but only if the contract’s price crosses your specified price level at 1 tick up.
Buy Stop — This is an order, thanks to which you will get Market execution of transactions at Ask price (it is displayed in the information ticker with #I). This will happen when the last price of the selected contract on the selected main ticker (for example, 6EH4) just touches your specified price.
Sell Stop — This implies Market execution of an order at Bid price, which can also be found on the ticker with #I, when the last price of the main ticker touches the exact price you specified in the order.
Stop Loss (Sell) — This limits your potential loss on the transaction to sell. In the event that you set an order for a deal to sell (Sell), the transaction will close on it at the Ask price (look for it in the Contract information with the #I). This will happen when the last price of the contract just touches that stated in the order price.
Stop Loss (Buy) — This order limits your loss on a transaction to purchase (Buy). It closes at Bid price, which can also be found next to the ticker with #I. This will happen when the last price of the main ticker just touches the price you mentioned in the order.
Take Profit (Sell) — This order helps to lock in profits on the transaction at a level that you specify. If you open a transaction to sell (Sell), then Take Profit will be executed at the exact price you stated when the last price on the main ticker crosses the price you specified by 1 tick down and trading begins already below the TP level.
Take Profit (Buy) — This order helps to lock in profits on the transaction at a level that you specify. If you open a transaction to buy (Buy), then Take Profit will be executed at the exact price you stated when the last price on the main ticker crosses the price you specified by 1 tick up and trading begins already higher the TP level.
Do not forget that each futures contract has a term of trade expiration. The rules by which this process passes, as well as future and past expiration dates can be found on our website in Contract Specifications section.
All orders that we have mentioned above are meant to be executed on the market. This means that you open and close the order at that price, which you can see in your terminal in the field of information contract with # I at the time of the transaction. However, if at this very moment the instrument's price suddenly changed, your order would be executed at the new price, you don't have the right to refuse this.
Many clients open transactions by calendar methods, or by intertrade and intermarket spread. For example, this is a position opened at any one time (during 60 minutes), on any side or in opposite directions with an equal volume of contracts. These contracts derive from the same group of underlying assets of commodities, either the same position opened on the same futures contract, but with different delivery months (near and far). If such transactions remain open for more than 3 days, the Company reserves the right to charge an additional daily fee to rollover at a price of $10 per standard lot and an amount equal to the current market spread for open contracts. Unfortunately, such are the demands of our liquidity providers.
Furthermore, according to the rules established by the market regulator, on Demo accounts not all trading tools from the CFD on futures group are available and quotes are received with an artificial delay.