Margin & Leverage
Margin trading can be used to increase investor’s purchasing power. An investor needs to only deposit a fraction of the funds required to open a larger position. Instead of having to pay the entire cost of the position, the investor only has to pay a portion, also known as the “initial margin”.
Margin & Leverage Rates
NDDFX offers modest margin and leverage rates to traders to give you the best chance at trading success.
The maximum leverage in our company is 1:200.
This is the maximum leverage traders can obtain without sacrificing their profitability and success. Higher leverage values, such as 1:500, are not typically offered by A Book brokers such as NDDFX.
Margin Call & Stop Out Levels
The margin level is calculated as the ratio of equity to used margin. It is recommended to either close positions to release margin or add additional funds to increase available margin.
This means that equity divided by used margin equals 1. In other words, equity has fallen so low that it is equal to the used margin. The greater the amount of risk, the greater the risk of a negative balance.
We are a broker that sends trades to market and we are very cautious about overdrawn accounts. This can lead to a negative balance. If you have an expiry, the market moves to another level, or if your account balance exceeds it, you can experience a negative balance. After the trades have been closed, a negative balance is created.
Important to remember that if your account balance becomes negative, you will need to deposit funds to bring it back to 0. Although this is unlikely, it can happen more often if you’re in Margin Call territory.
A B-book broker will first contribute the account’s entire deposit to profit. However, since the trades of the client did not go to market the broker is not obligated to that money to its counterpart, the so-called liquidity provider. NDDFX will owe the negative balance to the counterparties if an account goes negative. This is because the trades were made on the real market.
This is not something we want to happen. We will contact you if there is excessive risk to ask you to reduce your risk.
Forex Trading Conditions
View our trading conditions across our full range of products to see how trading with Global Prime is your next best move.
Check our Market hours for open/trading hours across all of our products.
Your questions, answered.
Forex is used to refer to the “Foreign Exchange Market”, which is the largest financial market worldwide. Forex trading involves purchasing one currency and exchanging it for another. The price is determined by supply/demand. Pairs of currencies can be traded to trade currency products.
Trading securities or currencies with leverage means that you can access far more buying power in the market than your actual balance. In order to provide the leverage you want, we need to get a security deposit or collateral. This is also known as margin.
We cannot provide more leverage because it would not allow us to interact with external liquidity providers. In the case of leverage greater than 1:200, NDDFX will be forced to act as a counter party in all of your trades.
ECN brokers provide a trading platform for their clients. It streams quotes from ECN participants and matches orders against them. It functions as a virtual exchange, where trades and risks are shared among the participants of the ECN instead of being internalised by the broker.
For serious traders who want maximum transparency and control, the DMA account is ideal. Trading at full market depth gives traders access to multiple liquidity levels, which allows them to gain greater insight into the market and to trade on the best offers and bids sourced directly by NDDFX liquidity providers. The prices are sourced from a wide number of top tier LPs and banks, however the LP names are not listed. All DMA trades are centrally cleared. All liquidity providers are anonymous on the platform.
We use an intelligent and fully automated system to find counter orders for your trading orders. Since we have a wide pool of liquidity providers, as a result we encounter different conditions from different providers. These conditions are usually related to different trading turnover requirements. The higher the trade turnover on our side, the more chances we have to get better prices and trading conditions from the providers.
We recommend choosing a type of account based on your trading strategy, if you trade long-term strategies, an ECN account will suit you perfectly. If you’re a intraday scalper, a DMA account is perfect. And if you want to get the most out of HFT trading, the best option is the FIX API account.
Forex trading is open 24 hours a days, 5 days a semaine, Monday through Friday.
We only charge commissions on FX and metals. Our commissions start at USD $3 USD per 1 lot. We do not charge commissions on CFDs.
We offer the following trading platform – MetaTrader 5
The size of the average slippage depends on the market. During a calm market, slippage will be minimal. If you open trades during a volatile market, the amount of slippage depends on your opening price and current market liquidity. Currently, during a volatile market in our company, there will be approximately the following slippages:
ECN – 4-7 pips
DMA – 2-4 pips
Fix Api – 0-4 pips
But these are average values, the exact values will depend on the market situation.
The minimum trade size that can be executed on FX is 0.01 lots.
Benefits of World Class Trading
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Deep liquidity through ECNs and dark pools. Get the ECN advantage.
Range of Markets
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Access to market depth on all account types
Depth of Market (or DoM), is a popular one that allows traders to see market liquidity. This refers to the number of trades on the market at what price.
Market liquidity is an important aspect for traders. If there isn’t enough liquidity in a market to match your orders your orders will be slipped or filled at higher or lower prices than you intended.