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Advanced Onboarding > CFD > Flashcards

CFD Flashcards

1
Q

Identify Pip and Point for 3 different symbols:
AUDUSDm: bid=0.74138 ask=0.74152.
XAUUSDm: bid=1984.569 ask=1984.769.
USDJPYm: bid=114.920 ask=114.931.
BTCJPYm: bid=4366014 ask=4373231.
AAPLm: bid=162.64 ask=162.72.
US30m: bid=33245.9 ask=33254.2.

Pips & Points, Lots & Volume

A

AUDUSDm: pip=0.0001 point=0.00001.
XAUUSDm: pip=0.01 point=0.001.
USDJPYm: pip=0.01 point=0.001.
BTCJPYm: pip=10 point=1.
AAPLm: pip=0.1 point=0.01.
US30m: pip=1 point=0.1.

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2
Q

Explain Lots.

Pips & Points, Lots & Volume

A

This is the standard unit size of a transaction. It represents the amount of contract sizes that we would trade on a position.

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3
Q

What is the standard Contract Size for the Standard Cent account? Provide an example.

Pips & Points, Lots & Volume

A

Contract Size is 100000 cents, that is 1000 units of the base currency. For the pair EURUSD, it would be 1000 EUR or 100000 cents of EUR.

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4
Q

What is the formula for Trading Volume? In what currency is it calculated (base/quote)?

Pips & Points, Lots & Volume

A

Trading Volume = Lot x Contract Size.
Calculated in base currency

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5
Q

Explain spread and state the formula.

Spread

A

Spread is the difference between the bid and ask prices, and the main source of income for the brokers.
Spread in pips = (Ask price - Bid price) / pip size

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6
Q

How many types of spread are there in general? What type of spread is provided in Exness?

Spread

A

There are 2 main types: floating (it varies) or fixed (same value independent on market conditions). Floating splits in dynamic (changes a lot) and stable (mostly fixed). We offer stable spread in Exness 90% of the time for some instruments.

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7
Q

Why do different Brokers have different prices and spreads? Specify 3 reasons.

Spread

A

Different Liquidity Providers. Different supply and demand. Different quote creation mechanisms.

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8
Q

How is our spread displayed on our website? How is it displayed in MT4, MT5 and Exness webterminal and Trade App ?

Spread

A

On our website it is displayed in pips and it is the average from the previous trading day. In MT4/MT5 you will see the current spread in points. And, in the Exness terminal and Trade App wou will see the current spread in pips.

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9
Q

Are Spread numbers the same for different accounts? Why/why not?

Spread

A

No, because different acounts have different conditions.

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10
Q

Explain margin, leverage and their relationship.

Margin & Leverage

A

Leverage: Is trading power, it is the ability to place larger positions that you would with only your balance. Margin: It’s the security deposit the broker keeps for you to keep open your leveraged positions. More Leverage = Less Margin, and viceversa.

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11
Q

Maximum and minimum leverage for all accounts.

Margin & Leverage

A

Minimum Leverage: 1:2.
Maximum Leverage: 1:2000 (by default) or 1:unlimited (if eligible)

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12
Q

Name 3 factors that limit the maximum leverage available when trading.

Margin & Leverage

A
  • Amount of Equity.
  • News release. Maket opening and closing. (HMR)
  • Fixed Margin Requirements for certain instruments.
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13
Q

Margin Call / Stop Out levels for all Account Types.

Margin & Leverage

A

For Standard (Standard, Standard Cent, Standard Plus):
- Margin Call: 60% (of Margin level)
- Stop Out: 0%
For Pro (Pro, Raw Spread, Zero):
- Margin Call: 30%
- Stop Out: 0%

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14
Q

How is Margin Requirement shown on our website?

Margin Requirement

A

It is shown in %

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15
Q

How is the margin requirement in % calculated? Give an example.

Margin Requirement

A

Margin requirement in % = (1 / leverage) x 100
For the Margin 1:200 you have:
(1 / 200) x 100 = 0.5%

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16
Q

How is margin calculated using margin requirement in percentage?

Margin Requirement

A

Margin = (Lot x Contract Size) x Margin requirement in %

17
Q

Explain swap. What time is it applied? For which types of orders is it applied to?

Swap

A

Swap is the amount deducted or added by brokers for keeping positions opened overnight. It is applied at 21 or 22 GMT depending on the season of the northern hemisphere. for buy orders we apply Long Swap, and for sell orders we apply Short Swap.

18
Q

To which trading instruments is swap applied?

Swap

A

In Exness we only apply swap to Forex, Metals and Energies

19
Q

Explain all 3 swap-free programs offered in Exness.

Swap

A
  • Swap free for Muslims: For residents of countries with mostly muslim population.
  • Swap free Standard: A few instruments are swap free.
  • Swap free Extended: A large list of instruments are swap free.
20
Q

When is triple swap day for different instruments?

Swap

A

Forex/Metals: Wednesdays
Energies: Fridays

21
Q

What swap details can be found on the Instruments page of our website?

Swap

A

You can see what is the swap size in pips for long and short positions, and also if the instrument is included in the extended swap-free level.

22
Q

Explain Fundamental Analysis and name 2 tools that Exness offers to clients.

Trading Analysis

A

Fundamental Analysis: Analysis made on “fundamental” factors, like news, market conditions, political events, enviromental events, etc.
- Economic Calendar
- Trading Central WebTV
- FxStreet News

23
Q

Explain Technical Analysis and name 2 tools that Exness offers to clients.

Trading Analysis

A

Technical Analysis: Analysis made on the charts of market previous behaviour.
- Trading Central Analytics
- Trading Central WebTV
- FxStreet News

24
Q

Show where to change account leverage.

Practical - Margin & Leverage

A

Go to myaccounts and click on the 3-doted menu -> change maximun leverage

25
Q

What is the Margin Requirement (leverage) for BTCUSD & ADAUSD?
(find the answer in Confluence)

Practical - Margin & Leverage

A

Check GKB -> “Contract specifications” -> Crypto -> look for margin requirement

26
Q

What is the contract size for XNGUSD?
(find the answer in Confluence)

Practical - Contract Size

A

Check GKB -> “Contract specifications” -> Energies -> look for contract size

27
Q

Open a position and explain Balance, Equity and Free Margin.

Practical - Equity, Balance, Free Margin and Profit/Loss

A

On Exness trading platform after placing an order at the top right by clicking on your account you can see the details. Balance is the total deposit - withdraw and the result of closed positions. Equity is the Balance +/- Profit/Loss. Free Margin is the available money to use as Margin when opening positions (Equity - Margin)

28
Q

What are the Trading Hours for Cryptocurrencies?
(find the answer in Confluence)

Practical - Trading Hours

A

Check GKB -> “CFD trading” -> “Trading hours” -> look for trading hours for crypto.

Advanced Onboarding (14 decks)

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