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Trading

Trading

Learn how trading works, understand trading conditions, and manage your positions and risks effectively.

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Orders & Positions

What happens to my orders and positions if I log out of my trading platform?

Orders and positions are processed on the trading server, so they remain active even if you log out. Only Trailing Stop orders require the platform to stay connected.

What are Sell Stop, Buy Stop, Sell Limit, and Buy Limit orders?

These are types of pending orders that allow you to enter the market at a predefined price rather than the current market price:

  • Buy Stop: An order to buy above the current market price. It is triggered when the market rises to your specified level and is used when you expect the price to continue rising.
  • Sell Stop: An order to sell below the current market price. It is triggered when the market falls to your specified level and is used when you expect the price to continue falling.
  • Buy Limit: An order to buy below the current market price. It is triggered when the market dips to your specified level and is used when you expect the price to rebound and move higher afterwards.
  • Sell Limit: An order to sell above the current market price. It is triggered when the market rises to your specified level and is used when you expect the price to reverse and move lower afterwards.

📌 Pending orders help you plan trades without constantly monitoring the market.

Why was my Buy Limit order not executed?

The market price may not have reached your specified level, or it may only have touched the bid/ask side opposite to your order type.

What are the minimum lot size available for trading?

Lot sizes vary by product. You can check the specific minimum in the instrument specifications on our website or in your trading platform.

How long can I keep my positions open?

Positions can generally remain open indefinitely unless closed by Stop Out, Stop Loss, or Take Profit. Swap fees apply to positions held overnight.

What is a Trailing Stop order?

A Trailing Stop is a type of Stop Loss that moves automatically with the market when the price moves in your favour. Instead of remaining fixed, it "trails" the price by a set number of points or pips.

  • If the market continues to move in your favour, the Trailing Stop follows it, helping you lock in more profit.
  • If the market turns against you, the Trailing Stop remains at its last level and closes your trade when triggered, protecting your gains.

📌 Example: If you set a Trailing Stop of 50 points on a buy trade and the market rises 80 points, your Stop Loss will automatically move 50 points higher, securing profit. If the market then drops, your position will close once it reaches the adjusted stop level.

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Trading costs

What is a spread in trading?

The spread is the difference between the bid and ask prices. It represents part of the trading cost.

What are the commission fees for trading with Born2trade?

Commissions depend on your account type and the instrument traded. You can view the exact commission rates on our website or in your trading platform.

What are swap fees?

Swap fees (or rollover fees) are the costs or credits of holding a position overnight.

How do I check the swap rates for a product?

  • In MT5: Open the Market Watch window, right-click the instrument you’re interested in, and select Specification. A window will appear showing detailed contract information, including the swap rates for both long and short positions.
  • In Born2trade X: Tap or click on the instrument, then select Symbol Info. This section displays key trading conditions, including contract size, margin requirements, and applicable swap rates.

📌 Tip: Swap rates are updated periodically and may vary depending on the market conditions.

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Trading basics

What trading instruments does Born2trade offer?

We provide trading CFDs on forex, metals, commodities, indices, stocks, and cryptocurrencies.

What are Long (Buy) and Short (Sell) positions?

  • Long (Buy) position: When you go long, you are buying an instrument with the expectation that its price will rise. You profit if the market goes up and lose if it goes down.
  • Short (Sell) position: When you go short, you are selling an instrument you don’t own with the expectation that its price will fall. You profit if the market goes down and lose if it goes up.

📌 Example:

  • Going long EUR/USD at 1.1000 and closing at 1.1050 gives you a profit (the price rose).
  • Going short EUR/USD at 1.1000 and closing at 1.0950 also gives you a profit (the price fell).

This flexibility allows traders to benefit in both rising and falling markets.

What are the Ask price and Bid price?

The Bid price is what buyers are willing to pay, while the Ask price is what sellers are willing to accept.

What is a locked position in trading?
A locked (hedged) position occurs when you open both buy and sell trades on the same instrument simultaneously.

If a hedged position is opened, the margin level is calculated from the highest margin. If two opposite positions are open on the hedge account, the margin for the combined position will be calculated on the basis of the larger position.

For example:

You Buy 2 lots of EURUSD and Sell 1 lot of EURUSD. The margin for the combined position will be calculated on the basis of 2 lots of EURUSD.

What is the difference between pips and points/pipettes?
A pip is the standard unit of price movement, usually the fourth decimal place. A pipette, also known as a point, is one-tenth of a pip (the fifth decimal place).

What is a market gap?
A market gap occurs when prices jump between two levels without trading in between, often after major news events or when the market opens.

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Account & Risk management

What leverage options are available at Born2trade?

Born2trade offers different leverage levels depending on your account type and the instrument you are trading:

  • Account leverage is the maximum leverage available for your trading account. It is set when your account is opened and can always be viewed in your Personal area and trading platform.
  • Instrument-specific leverage applies to each product individually. You can check the exact leverage for each instrument in the instrument specifications on our website or in your trading platform.

Leverage allows you to control larger positions with a smaller margin, but it also increases both potential profits and risks. Using higher leverage can amplify your exposure, while lower leverage reduces risk but requires more margin.

What does margin level mean, and how is it calculated?

Margin level shows the status of your trading account and how close you are to a Margin Call or Stop Out. It is expressed as a percentage and calculated using the formula:

Margin Level = (Equity ÷ Used Margin) × 100%

  • Equity = Your account balance plus or minus any profit/loss from open trades.
  • Used Margin = The total margin currently tied up in your open positions.

📌 Example: If your Equity is $1,000 and your used margin is $500, your margin level is (1,000 ÷ 500) × 100% = 200%.

At Born2trade, a 100% margin level triggers a Margin Call notification, and if it falls to 50%, the Stop Out process begins.

How do I calculate margin requirements?

You don’t need to calculate margin manually, as both platforms show it directly:

  • MT5: Right-click the instrument in Market WatchSpecification. Here you'll find the margin requirement for one lot, automatically converted into your account's base currency.
  • Born2trade X: When you select your trade size, the required margin is calculated dynamically and displayed on the order ticket before you place it.

📌 Tip: Margin requirements vary depending on the instrument and leverage, so always check before opening a position.

What is free margin, and how is it calculated?

Free margin = Equity – Used Margin. It is the amount available to open new positions.

How do I calculate profit/loss for CFD positions?

Profit and loss (P/L) for CFD trades is calculated as the difference between the opening and closing prices multiplied by the contract size and the number of lots.

The general formula is:

P/L = (Closing Price – Opening Price) × Contract Size × Number of Lots

  • For a Buy (long) trade: If the closing price is higher than the opening price, you make a profit. If it is lower, you take a loss.
  • For a Sell (short) trade: The calculation is reversed. If the closing price is lower than the opening price, you make a profit. If it is higher, you take a loss.

📌 Example:

You buy 1 lot of EUR/USD (100,000 units) at 1.1000 and close at 1.1050.

P/L = (1.1050 – 1.1000) × 100,000 × 1 = $500 profit.

How does leverage affect my Stop Out?

Higher leverage lowers margin requirements but increases the risk of Stop Out if trades move against you.

What happens when my account has no free margin?

You cannot open new positions, and existing positions may be closed if a Stop Out is triggered.

Is a free margin required to lock positions in my trading account?

Yes. Free margin is required to maintain both new and locked (hedged) positions.

Why did I get a Margin Call when my trading account appears above the Margin Call threshold?

Market volatility, spreads, and swaps can temporarily reduce Equity, causing your margin level to fall below the threshold.

What is the difference between Balance and Equity in my account?

Balance is your account total excluding open trades. Equity = Balance ± Floating P/L of open positions.

Is it possible to lose more than my account balance when trading CFDs?

In extreme market conditions, losses may exceed your account balance. Born2trade provides negative balance protection to limit this risk.

What if my account experiences a Stop Out due to an EA or copy-trading strategy?

Stop Outs apply regardless of whether trades are manual, automated, or copied. Monitor your margin and risks carefully.

Can Born2trade compensate for the amount lost during a Stop Out?
No. Stop Out losses cannot be reimbursed, as they result from trading risk.

When will I receive my account statements?

Statements are sent automatically by email, daily and monthly.

How can I generate trading account statements?

  • In MT5: Open the Account History tab, right-click anywhere inside the window, and select Save as Detailed Report. This will generate a downloadable statement of your trading history.
  • In Born2trade X: Click the download icon in the bottom-right corner of the trading panel, then select your preferred date range and format to generate a custom statement.
  • In the Personal area: You can log in to your Born2trade Personal area at any time to view your full trading history by account.

📌 Tip: Statements can be customised by date range, making it easy to track trading performance or share records for tax purposes.

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Closing positions

What is a Margin Call, and how does it work?

A Margin Call occurs when your account Equity falls to the broker's required margin call level. At Born2trade, a Margin Call is triggered when your margin level reaches 100%.

This is a warning to either deposit additional funds or close some positions. If no action is taken and your Equity continues to decline, your account may reach the Stop Out level, where positions are automatically closed to protect your balance.

What is Stop Out, and how is it calculated?

Stop Out is the automatic closure of open positions when your margin level falls below the liquidation threshold. At Born2trade, the Stop Out level is set at 50%. Once this point is breached, the platform will begin closing positions automatically - starting with the largest losing trade - until your margin level is restored to a sufficient level. This mechanism helps protect your account from going into a negative balance.

How can I avoid a Stop Out?

You can reduce the risk of Stop Out by monitoring your margin level, using appropriate leverage, applying stop losses, and avoiding overexposure in your trades.

What is slippage, and how does it affect my trades?

Slippage occurs when your order is executed at a price different from the one you requested, often due to rapid market movements or low liquidity. This can result in slightly better or worse execution.

Is it possible to avoid slippage?

Slippage cannot be completely avoided in volatile markets, but you can minimise it by trading during high-liquidity sessions and using limit orders instead of market orders.

What are Stop Loss (S/L) and Take Profit (T/P)?

A Stop Loss closes a trade when the market moves against you to a specified level, while a Take Profit closes a trade once your target profit is reached. Both help manage risk and lock in profits.

Why am I getting the "invalid S/L or T/P" error when setting Stop Loss and Take Profit?

This usually happens when your S/L or T/P is placed too close to the current market price. Adjust the distance based on the minimum levels required by the platform.

At what prices do Buy and Sell orders open and close?

In trading, the execution price depends on whether you are opening a buy or a sell order:

  • Buy orders (long positions) open at the Ask price and close at the Bid price.
  • Sell orders (short positions) open at the Bid price and close at the Ask price.

This difference between the Bid and Ask prices is known as the spread and represents part of your trading cost.

Why are my Stop Loss and Take Profit orders not triggering as expected?

They may not trigger if the market price has not reached the set level or if you are looking at the wrong side of the price (bid vs ask).

Why did my order close beyond the specified Stop Loss or Take Profit price?

In fast-moving or illiquid markets, your order may be filled at the next available price, leading to execution beyond your set level.

What causes my Stop Loss and Take Profit to be filled at different prices?

This is typically due to market gaps, slippage, or sudden volatility.

Why are the Stop Loss and Take Profit levels not visible on the chart?

Check your chart settings—S/L and T/P lines can be enabled in the platform settings if they are not visible.

Will my preset price be the same as the final execution price?

Not always. In volatile conditions, your order may be filled at the closest available market price.

Why did my order get executed at a less favourable price?

This is usually caused by slippage or market gaps during periods of high volatility.