FAQ: Trading issues


On the platform you are able to trade in various financial instruments, among these financial contracts such as FX Spot, FX Options, CFDs, Futures etc. When you trade in such contracts, you are not buying an actual asset (as e.g. with stock trading) but you are entering into a contract. As you are not buying the actual asset but entering into a contract, you have the possibility of entering a contract of a higher nominal value than you are holding on the account. This is what is known as leveraging, gearing or margin trading – the benefit is that profits on successful, leveraged trades can be greater than what would be achieved on non-leveraged trades.

It should be carefully noted that also the opposite is true: leverage can also increase the size of losses, and you can lose more than your have deposited on your account.

Below is an exmaple, where the client has 10.000 EUR on the account and buys 2 DAX CFDs. In this example the current market price (“Close”) is 10,732.50, and since the client has bought 2 CFDs the “Exposure” is 21,465 EUR, while the account value is 10,040.00.In other words, the market exposure is greater than the account value, so this is an example of “leveraged trading”.
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To be able to take leveraged positions, you need to have sufficient “margin” (also known as “collateral”) on your account in order to guarantee any losses you may incur. Each margin traded instrument will have a margin requirement, which is a percentage of the “Exposure”. In the above example, if the margin requirement on the DAX CFD were 2% the client would be required to have EUR 21,465 x 0,02% = 429.30 EUR on the account as margin.

The trading platform will not allow you to take trades that will bring your margin utilization above 100%. If you use the “Trade Ticket” you will have a Margin-preview available, which gives you an indication of how much the “Available for Margin Trading” would change if you buy or sell the entered amount respectively. If you take a trade that will reduce the available margin by more than you have “Available for Margin Trading” the system will alert you before you take the trade. If you attempt to take a trade that would exceed margin limits, you will be rejected.
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The trading conditions for all available instruments can be found in the “Account” tab under “Trading Conditions”.
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If you have long and short positions they will net out at the end of the trading day – but only if the long and short positions are on the same account and none of them have any related orders as related orders prevent the netting of positions.
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Looking at the 3 positions in more detail, you will notice:

  • EURUSD positions (long and short 1,000,000) are placed on 2 different accounts – so even though the client is square, the 2 positions will not net out.
  • USDJPY positions (long and short 500,000) are placed on the same account – but the long position has related orders. This means that the positions will not net out at the end of the day.
  • The Apple positions (long and short 100 Apple shares) are on the same account, and none of the positions have any related orders – so they will net out at the end of the day.

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In the 3 examples above the long and short positions are for the same amount. It should be noted that the netting also applies if the long and short positions are for different amounts – if you have a long EURUSD position for 1 mln. and a short for 750 000 on the same account with no related orders, they will net to a single long position of 250 000 at the end of the trading day.
First-In-First-Out (FIFO)
When netting the open positions, ELANA uses FIFO rules, which means the first position you open is the first position to be closed.
Example:
You are trading EURUSD opening the following positions:

  1. Buy 1M EURUSD
  2. Buy 1M EURUSD
  3. Sell 1M EURUSD
  4. Sell 2M EURUSD

Sell 1M EURUSD
The first long position 1) will net out with the first short position 3), the second long position 2) will net out with half of the second short position 4), leaving only one short position of 1M EURUSD at the end of the day.

A trailing stop order can be used to protect a position (to limit the maximum loss) just like a normal stop order. Unlike a normal stop order, the trailing stop will follow the position, as it becomes increasingly profitable.
When placing a trailing stop you need to set 2 parameters: “distance to market” and “trailing step”:
Distance to market: how far from the market price should the stop be placed?
Trailing Step: by how much should the market move before the stop order re-adjusts?

In this example, the client has bought Amerisourcebergen Corp. shares (ABC:xnys) @ 73, and placed a trailing stop with the following parametres:

  • Distance to market- 7 USD
  • Trailing Step- 4USD

On the chart you can see that the trailing stop has adjusted 11 times for a period of 1 year.
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When the shares were bought @ 73, the stop loss was set initially @ 66, because “the distance to market” was 73 – 66 = 7. As the shares moved up, also the stop started moving up – but it did so only in “steps” – and this is because the “trailing step” was set @ 4.
Here is how you would place a related trailing stop to an existing position:

  1. Launch “Open Positions”
  2. Click “Add stop order”
  3. Select “Trailing stop”
  4. Set the distance to market
  5. Set the trailing step

Notice: you may prefer to not set a “take profit”
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You will notice that you can click on the black “connector” between the “Price” and “Distance to Market” – this will allow you to change between 2 ways of setting up the trailing stop:

  • Input the price at which the trailing stop order must start – the system will then calculate what the distance to market should be.
  • Input the distance to market that the stop order should start with – the system will then calculate what the initial level of the stop order should be.

The system will take into account the current market price to calculate these values correctly.
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On the platform you are able to trade in various financial instruments, among these financial contracts such as FX Spot, FX Options, CFDs, Futures etc. When you trade in such contracts, you are not buying an actual asset (as e.g. with stock trading) but you are entering into a contract. As you are not buying the actual asset but entering into a contract, you have the possibility of entering a contract of a higher nominal value than you are holding on the account. This is what is known as leveraging, gearing or margin trading – the benefit is that profits on successful, leveraged trades can be greater than what would be achieved on non-leveraged trades.

It should be carefully noted that also the opposite is true: leverage can also increase the size of losses, and you can lose more than you have deposited on your account.

Below is an example, where the client has 10.000 EUR on the account and buys 2 DAX CFDs. In this example the current market price (“Close”) is 10,732.50, and since the client has bought 2 CFDs the “Exposure” is 21,465 EUR, while the account value is 10,040.00.In other words, the market exposure is greater than the account value, so this is an example of “leveraged trading”.

To be able to take leveraged positions, you need to have sufficient “margin” (also known as “collateral”) on your account in order to guarantee any losses you may incur. Each margin traded instrument will have a margin requirement, which is a percentage of the “Exposure”. In the above example, if the margin requirement on the DAX CFD were 2% the client would be required to have EUR 21,465 x 0,02% = 429.30 EUR on the account as margin.

The trading platform will not allow you to take trades that will bring your margin utilization above 100%. If you use the “Trade Ticket” you will have a Margin-preview available, which gives you an indication of how much the “Available for Margin Trading” would change if you buy or sell the entered amount respectively. If you take a trade that will reduce the available margin by more than you have “Available for Margin Trading” the system will alert you before you take the trade. If you attempt to take a trade that would exceed margin limits, you will be rejected.

The trading conditions for all available instruments can be found in the “Account” tab under “Trading Conditions”.

If you have long and short positions they will net out at the end of the trading day – but only if the long and short positions are on the same account and none of them have any related orders as related orders prevent the netting of positions.

Looking at the 3 positions in more detail, you will notice:

  • EURUSD positions (long and short 1,000,000) are placed on 2 different accounts – so even though the client is square, the 2 positions will not net out.
  • USDJPY positions (long and short 500,000) are placed on the same account – but the long position has related orders. This means that the positions will not net out at the end of the day.
  • The Apple positions (long and short 100 Apple shares) are on the same account, and none of the positions have any related orders – so they will net out at the end of the day.

In the 3 examples above the long and short positions are for the same amount. It should be noted that the netting also applies if the long and short positions are for different amounts – if you have a long EURUSD position for 1 mln. and a short for 750 000 on the same account with no related orders, they will net to a single long position of 250 000 at the end of the trading day.

First-In-First-Out (FIFO)
When netting the open positions, ELANA uses FIFO rules, which means the first position you open is the first position to be closed.

Example:
You are trading EURUSD opening the following positions:

1)​ ​Buy 1M EURUSD
2) ​ Buy 1M EURUSD​
3)​ Sell 1M EURUSD​
4)​ Sell 2M EURUSD​
Total​ Sell 1M EURUSD​

The first long position 1) will net out with the first short position 3), the second long position 2) will net out with half of the second short position 4), leaving only one short position of 1M EURUSD at the end of the day.

A trailing stop order can be used to protect a position (to limit the maximum loss) just like a normal stop order. Unlike a normal stop order, the trailing stop will follow the position, as it becomes increasingly profitable.

When placing a trailing stop you need to set 2 parameters: “distance to market” and “trailing step”:
Distance to market: how far from the market price should the stop be placed?

Trailing Step: by how much should the market move before the stop order re-adjusts?

In this example, the client has bought Amerisourcebergen Corp. shares (ABC:xnys) @ 73, and placed a trailing stop with the following parameters:

  • Distance to market- 7 USD
  • Trailing Step- 4USD

On the chart you can see that the trailing stop has adjusted 11 times for a period of 1 year.
When the shares were bought @ 73, the stop loss was set initially @ 66, because “the distance to market” was 73 – 66 = 7. As the shares moved up, also the stop started moving up – but it did so only in “steps” – and this is because the “trailing step” was set @ 4.

Here’s how you would place a related trailing stop to an existing position:

  1. Launch “Open Positions”
  2. Click “Add stop order”
  3. Select “Trailing stop”
  4. Set the distance to market
  5. Set the trailing step

Notice: you may prefer to not set a “take profit”
You will notice that you can click on the black “connector” between the “Price” and “Distance to Market” – this will allow you to change between 2 ways of setting up the trailing stop:

  • Input the price at which the trailing stop order must start – the system will then calculate what the distance to market should be.
  • Input the distance to market that the stop order should start with – the system will then calculate what the initial level of the stop order should be.

The system will take into account the current market price to calculate these values correctly.

O.C.O orders (One Cancels Other) that are not related to a position can be used to place a stop loss and take profit order on a net position, where one is cancelled if the other is executed (also known as “bracket orders”). This is useful for example when you have traded in and out in an instrument during the day, and want to protect your net position overnight.

In the below example, the client has been trading in and out of CHFJPY intraday, and now has a long exposure of 700,000 CHF, and wants to add a protective stop and a take profit order on the net exposure. This cannot be done with related orders, as they can only be placed on the individual position.

  1. Right click on the net position
  2. Select Forex Orders
  3. Tick the “O.C.O.”-tick box
  4. Change to “Sell” (since the position is “long” the orders must be “sell”)
  5. Input the desired take profit level
  6. Input the desired stop loss level

Now you can place the pair of orders. In Open Orders, you can now:

  1. Check that the amount is the same and the orders are in the opposite direction as the position.
  2. Verify that the 2 orders have a relation between them.
  3. Observe that they are not related to a position. It is important – if you use the “stand alone” O.C.O orders in this way, they will not be cancelled if you close the position manually – so it is your responsibility to cancel these orders manually, in case you close the position manually.

In ELANA Global Trader we display a yellow warning triangle if you are about to place a trade in an instrument in a different currency than the currency of the account and you have an account available in the same currency as the instrument you are trading:

  1. A EURUSD option is selected while a EUR account is selected BUT: a USD account is also available. FX Option premiums are expressed in the secondary currency, in this case USD, so it makes sense to trade this instrument on a USD account, if one is available. It is recommended to manually select the USD account and then to make the trade.
  2. A DAX CFD, which is denominated in EUR is selected on a USD account and a EUR account is available – so the platform suggests considering trading the CFD on the EUR account.

Limit orders are used to take profit or to enter the market at a certain price level. For further information, please refer to the trading conditions for a specific instrument.

You can place a limit order by selecting “Limit” in the “Entry type” field of the trade ticket.

The default trade size can be altered in the trade ticket using the “Edit amounts” function in the “Amount” field.

This procedure has to be repeated for every instrument.

For ELANA Global Trader, Indices, Commodity CFDs and Bond CFDs a Stop to buy is triggered by the offer price, and a stop to sell is triggered by the bid price.

For Single stock CFDs, Futures and Cash shares, stop orders are triggered by the last traded price. For FX CFDs and FX spot a stop to sell is triggered by the offer price and a stop to buy is triggered by the bid price.

Stop if Bid orders are typically used to limit losses on short positions. Stop if Offered orders are typically used to limit losses on long positions. This is to prevent orders from being triggered just because of a temporary large spread (maybe for a split of a second).
ELANA Trading therefore encourages you to only use Stop if Bid for Buy orders and Stop if Offered for Sell orders. To help you select the right Stop order type, the ‘FX Order’ Ticket on the platforms automatically defaults to Stop if Bid for Buy and Stop if Offered for Sell orders unless you actively change it before placing the order.

  • Stop if Bid orders to buy are when triggered most often filled at the order level plus the client spread, which means no slippage. During volatile markets with price gaps, orders may be slipped to the current market offer price.
  • Stop if Offered orders to sell are when triggered most often filled at the stop order level minus the client spread, which means no slippage. During volatile markets with price gaps, orders may be slipped to the current market bid price.
  • Stop if Bid orders to sell are when triggered filled at the client Bid price at the time.
  • Stop if Offered orders to buy are when triggered filled at the client Offer price at the time.

Open orders can be cancelled in the event of a stop out at 150%. Related orders can be cancelled if the related position is closed as a result of another order.

ELANA Global Trader offers aggressive 1-click trading where no confirmations are required when placing trades and orders.

By default, all trades and orders placed through the ELNA Global Trader platform require 2 clicks as a safety mechanism to avoid placing mis-trades.

To enable 1-click trading in ELANA Global Trader:
Click on the number “1” or “2” icon on top right hand corner on the platform.
A window popup for Platform Trading Setup, will allow you to select either 1-click trading or 2-click trading.

To confirm your selection, click on “Accept” and the new settings will be reflected.

ELANA Global Trader allows you to set up your own order distances for the products you trade setting up default entry and related order distances and types. In the platform you can select the default order settings per product, so for example, the default order distances for all Forex crosses, CFDs, CFD Indices, Stock, Futures, etc.

For each product you can set: Entry order default distance to market as a %/pips for FX or %/ticks for other instruments

ELANA Global Trader allows you to quickly and efficiently place and manage trades directly in the chart, where you can drag them to the match price levels on your chart. How to place an order?

  1. On the Charts panel, click on “Trade” button and Select the account that you want to trade in.
  2. Click the Buy or Sell button. The chart will decide if you want to place a limit or stop entry order depending on whether you buy/sell entry is above/below the current market Price.
  3. Drag the chart trader to the price level you want, you can also fine-tune the price level using the Price field inside the chart trader.
  4. Click OK to check details of order and finally click Confirm to place the trade.

As a rule, ELANA Trading does not offer clients access to the IPO order book. If you have any interests please contact us at 02/8100026. Please contact us at 02/8100095 for information regarding the timing of a specific IPO and the possibility of trading the stock on the secondary market after placement.

All available Futures Spreads are listed on an exchange and can be found in the trading platform in the “Trading” tab – “Instrument Explorer” – “Instrument” – “Futures” – “Futures Spreads”.

Once you have selected the futures spread you wish to trade, you can place an order using the trade ticket in the “Trading” tab.

The platform supports Limit and Market orders on Futures Spreads, Stop orders are not supported. The “Legs” section of the trade ticket allows you to view the direction of the trade in each contract within the spread.

In order to facilitate the process of price discovery for FX Option traders, the Forex Options Board, should be used. When a trader has an idea he wants to implement, the Forex Options Board enables him to compare the pricing of various tenors/strikes at a glance. If you don’t find the strike and/or expiry you want to trade on the Options Board, it might still be available via the trade ticket where you have the flexibility to adjust expiry and the strike.

What are the “Greeks”?

  • Delta:Shows the equivalent FX Spot exposure of a given position. This is the sensitivity of a position’s value with respect to the spot rate.
  • Gamma:This is the second derivative of the position value with respect to spot, i.e. it shows how much the delta changes when spot changes (i.e. how much will the delta change when spot moves up by one percentage point.
  • Vega:Sensitivity of a position with respect to the implied volatility used to price FX Options. This shows how much money is made (positive number) or lost (negative number) when volatility goes up by one percentage point.
  • Theta:Also known as time decay. This shows by how much the position will increase or decrease in value from one day to the next.

Before a trade you can view the greeks of an FX Option in the trade ticket. Right click in the trade ticket –> settings –> Show Greeks as factor to change between displaying Greeks as “Amounts” and “Factors”

Level 2: Gives you access to the same real-time market data as when subscribing to Level 1, but also includes real-time market depth – 5 best bid/ask in the market (stocks and DMA only). You can subscribe to a level 2 exchange data feed via the trading platform in the “Manage Subscriptions” section of the “Account” tab. The subscription is renewed automatically every month.

When you buy a forex option you do not have any margin requirements. In addition, one part from the premium of the long option can be used as collateral for margin trading. The rest of the amount is displayed at “Account Summary”- “Not available as margin collateral”.

Yes, but only for accounts with a value of min. 100,000 USD (or equivalent).

  • A pre-market order is designed to trade in the pre-market session on the US markets only. The order will participate in the pre-market, and any residuals will be rolled into the continuous session as regular limit orders at the same limit price.
  • Please note that US Pre-market Limits are currently only available on CFDs, not for Stocks.
  • The only difference to a normal limit order is that this order allows participation in the pre-market session.

Note: Be aware that liquidity typically is low in the pre-market session – so when orders are placed aggressively they might get filled closer to the limit price than anticipated.

It is necessary to be familiar with the expiry date. It is recommended not to exercise the option, if you do not have the necessary amount to keep the stock position. In case the option expires “in-the-money” the following will happen: After the end of the exchange session the cash balance will be debited with the sum necessary to buy the stock. The stocks will be bought at strike price. The shares have to be sold in order for your account to not have a negative balance. It is possible the sale to be carried through by a broker at the first available price after the exchange opens. Commissions will be paid for option trades, for buying and selling the stocks and for exercising the option. If you want to avoid this you will have to sell the option before it expires.

It is necessary to be familiar with the expiry date. It is recommended not to exercise the option, because you are unable to short stocks. In case the option expires “in-the-money” the following will happen: After the end of the exchange session there will be an exercise of the option and you will “short” the shares at strike price. The next day, immediately after the market opens, the short position will be closed. Commissions will be paid for option trades, for buying and selling the stocks and for exercising the option. If you want to avoid this you will have to sell the option before it expires.