Spreadbetting Company reviews for use with Forex Net Trap

This is a discussion on Spreadbetting Company reviews for use with Forex Net Trap within the Forex Net Trap forums, part of the Specialists' Corner category; Originally Posted by MikesDirect G'day RT, I'm a bit confused about Smart Live. Does their platform enable you to set ...

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Old Aug 23, 2010, 4:20pm   #17
 
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Re: Spreadbetting Company reviews for use with Forex Net Trap

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Originally Posted by MikesDirect View Post
G'day RT,

I'm a bit confused about Smart Live. Does their platform enable you to set a price per pip trade or is it a traditional MT4 Platform which uses leverage?

Regards,
MD
Smart Live Markets is spreadbetting using MT4 platform, so yes you bet £xxx per pip. A pip being per forth decimal place , i.e 1.55774 to 1.55874 is 10 pips.

So this morning on IG you entered 15577 , on SML it's 1.5577 , but both report the fifth decimal but this is in effect a 1/10th of a pip.

M
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Old Aug 23, 2010, 4:48pm   #18
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Re: Spreadbetting Company reviews for use with Forex Net Trap

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Originally Posted by mark120169 View Post
Smart Live Markets is spreadbetting using MT4 platform, so yes you bet £xxx per pip. A pip being per forth decimal place , i.e 1.55774 to 1.55874 is 10 pips.

So this morning on IG you entered 15577 , on SML it's 1.5577 , but both report the fifth decimal but this is in effect a 1/10th of a pip.

M
I just downloaded their platform and it seems to me to be a traditional leveraged MT4 account trading in Lots rather than pips. If I select "New Order" it's trading in volume (Lot sizes) and not pips.
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Old Aug 23, 2010, 4:53pm   #19
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Re: Spreadbetting Company reviews for use with Forex Net Trap

I just got an email from them. It's their CURRENEX platform that enables trades in "amounts" (ie pips) and not MT4:

--------------------------------

From: Mike [mailto:mikesdirect***********]
Sent: 23 August 2010 16:20
To: helpdesk@smartlivemarkets.com
Subject: Account Query

Hi,

I just opened a demo account but think I may have downloaded the wrong platform. I want to demo the CURRENEX platform (not MT4) as I believe the former enables trades in actual amounts rather than Lots.

Please can you advise re: the CURRENEX platform?

Regards,
Mike
-------------------------------

Hi
Thanks for your email.

I am afraid we do not have Currenex on offer, yet.
It could be a little clearer on our website I must say, although on our home page it does say ‘coming soon’.

We are currently integrating it with our back office.
So at the moment the only demo we have is for the MT4 platform.
Regards
SLM
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Old Aug 23, 2010, 4:55pm   #20
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Re: Spreadbetting Company reviews for use with Forex Net Trap

you've lost me Mike, what's the difference between lots and pips?
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Old Aug 23, 2010, 5:15pm   #21
Joined Jun 2010
Re: Spreadbetting Company reviews for use with Forex Net Trap

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Originally Posted by mark120169 View Post
Hi. Does any regular MT4 users know how to adjust the chart displays and trade log info off CET (Central European Time) and back 1 hour to BST (British Summer Time) ?

I have looked all over the tool bars and all the settings tabs and gone into the help section and searched on timezone (zilch) the Time , which gave loads but nothing about adjusting for timezones.

Or is the timezone thing managed by the broker?

Thanks

M
Can't adjust it. Set by the broker.
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Old Aug 23, 2010, 5:18pm   #22
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Re: Spreadbetting Company reviews for use with Forex Net Trap

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Originally Posted by Rugby Trader View Post
you've lost me Mike, what's the difference between lots and pips?
Basically a traditional spreadbetting company like IG enables you to trade "price per pip." With an MT4 platform you are trading currency "Lots" which is the traditional way of trading Forex and utilises Leverage - a different ball game altogether. That's why there's thousands of sites offering Forex training.

A "brief" explanation:

The broker not only allows retail investors to trade forex live with the banks, but also provides a system of leverage. This means that the broker only requires a deposit to represent the amount of currency a person wants to control, so long as the deposit is enough to cover any losses that might be incurred by the trade.
Take for example a margin leverage of 100:1 given to you by the broker. This means to control $100,000 of real currency (1 lot), you need to provide security to the broker of only $1000. Each ‘pip’ movement in price will cause your equity to increase or decrease by $10. For example if the currency pair you are trading is GBP/USD (also known as cable) and the price you are quoted is 1.8484, this means 1 UK pound sterling is equal to 1.8484 US dollars.

So, if you are controlling 100,000 units of currency (or you have placed a buy/sell forex trade of ‘1 lot’)in the above case, each time the price changed by 1 pip - ie. 1.8484 changes to 1.8485 - you gain or lose $10 US. This is because 0.0001 x 100,000 = 10 and you have opted to control 100,000 units of currency.

The amazing thing though is that you as a retail trader have only used a security measure of $1000 deposited with the broker in your brokering account and the only cost for placing the trade is a small spread (no comission in many cases) of say 2-3 pips in which the broker makes his profit regardless of whether your trade is successful or not. And the chances of you losing that entire $1000 in the trade are extremely slim, especially if you use risk management and safeguard your capital from losses by setting a “stop loss” - a topic out of the scope of this article.

So what about mini-forex trading. It’s a subject which many people seem to want to know about. What is a mini-forex trading account? What is mini forex trading? Mini Forex trading is quite simple to explain given the above information. In light of the information that is told to you above about retail forex trading in general, the use of a mini-account is exactly that!

Rather than trading 1 whole lot each time (ie controlling 100,000 units of currency using only 1000 units of security or deposit to trade for a profit of about $10 per pip depending on the forex currency pair you and trading) you can use a mini-account (sometimes this is entirely indistinguishable from a standard account) to trade a fraction of a lot. This could technically be as little as 0.1 lot (ie $1 profit per pip) or half a lot - $5 profit per pip etc. This is the authors understanding of mini-forex-trading.

In conclusion then, mini forex trading is explained away by understanding what a ‘lot’ is in forex. Once you understand that forex is traded in ‘lots’ and what ‘1 lot’ means to the investment banker/forex trader in the bank and to the retail investor using margin leverage provided by a broker, you can understand that mini-forex trading is forex trading on a mini-scale. Instead of trading in lots or multiples of lots (more than one) the retail investor uses a smaller deposit with the broker and trades for less profit, but less risk as well and not needing so much profit to start out with, eg 0.1 lots or 0.5 lots. Some forex brokers these days will allow currency trading with a deposit of as little as $500 into a customers account.


Sorry but there's no simple way of exlaining it!
Regards,
MD
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Old Aug 23, 2010, 5:21pm   #23
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Re: Spreadbetting Company reviews for use with Forex Net Trap

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Originally Posted by Rugby Trader View Post
you've lost me Mike, what's the difference between lots and pips?
On smart live markets when you enter trade volume, you are entering pounds per pip. With a regular mt4 boker (non spread bet), the trade size (volume) is in lots. One standard lot is $10 per pip for cable (£10 per pip for eurgbp, 10chf for usdchf etc).
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Old Aug 23, 2010, 5:31pm   #24
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Re: Spreadbetting Company reviews for use with Forex Net Trap

will definitely have to demo - trade extensively before i use a proper forex broker!
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