VOLATILE MARKET CONDITIONS
Risks of Trading
Volatile market conditions are unpredictable. If you keep an eye on the markets, you may have noticed that when major economic news is released, a currency price can significantly move in either direction. This unpredictable movement often creates volatile trading conditions. Combined with the high degree of leverage available, such price movements can potentially lead to substantial gains or losses to your account. Please always remember that trading during volatile market conditions can be extremely risky!
Possibility of Dealer Requote
When prices move this quickly, there is a risk that by the time we receive your order, the price may have already changed. We cannot and do not guarantee rates in times of extraordinary market volatility. In volatile market conditions your order may be requoted to the next available price. In order to execute this trade you must accept the new requoted price.
We understand that it can be frustrating to get requoted during a fast moving market. In order to minimize the chance of missing an important opportunity to enter or exit a position, we have introduced a feature called Trader’s Range. Trader’s range is a feature on the order screen of VT Trader that allows you to specify the maximum number of pips of deviation from the quoted price (in either direction) that you are willing to accept. Please see the VT Trader Manual for more information about this feature.
Stop and Limit Orders
The policy Forex is to honor all stop and limit orders for positions up to 10 lots, under normal market conditions. For positions greater than 10 lots, or during extraordinarily volatile market conditions, it may become impossible to execute such orders at their intended price and the next available price will be used to process the contingent order. In those cases, placing a stop or limit order will not necessarily limit your losses to the intended amounts.
Also, please note that slippage may occur on stop and limit orders due to weekend price gaps.
Our dealing desk’s commitment to getting you the best available price is such that we will often execute your order at your originally requested price even if the market has already moved. Our dealing desk and support are available day and night to take orders and resolve any execution issues that may arise, promptly and courteously.
Simulated Conditions
Many forex clients initially get introduced to trading by opening a demo trading account. Please note that trading conditions on your demo account may differ from trading conditions on your live account. While both demo and live accounts use the same real-time price feeds, you may experience differences in execution, especially during periods of high market volatility. Therefore, certain trading strategies that may be successful on your demo account may not be successful on your live account. Success on a demo does not necessarily imply success with a live account.