Trading and execution FAQ

What is XBTFX’s model of execution?

XBTFX is an NDD/STP execution broker offering CFDs on FX, Cryptocurrency, Commodities, & Indices . We offer Market Execution on all of our account types and platforms.

Our Execution is 100% STP meaning all client orders are passed to our liquidity provider over the OneZero liquidity hub at the Equinix LD4 Datacenter. Our commitment to the STP execution model has allowed us to provide broker services to the best traders in the Crypto and Forex community that require and demand professional execution, fund security and timely redemption of profit taking.

Do you guarantee stoploss orders?

Placing a stoploss order serves as an additional risk-mitigation strategy. However, a stoploss order is never guaranteed. This is because the price at which the stoploss order is placed serves as a ‘trigger point’. In the event that the price of the instrument being traded reaches the trigger price, your stop-loss order will be treated as a market order and executed at a Volume Weighted Average Price (‘VWAP’) as per the Order Execution Policy. During abnormal conditions and high volatility, a stop-loss order may be executed at a worse or better price.

Do you offer micro (0.01) lots?

Yes, you can trade micro lots our standard or ECN account type on MT5, MT4 and XBTFX Trader platforms.

What is the Stopout level?

XBTFX employs a conservative stopout level of 50% Margin Level to protect our clients balances and XBTFX omnibus business accounts . The Margin level (%) is calculated as follows:

Margin level (%) = Equity / Margin X 100.

The XBTFX MetaTrader 5 Platform will display a margin call warning at 100% and will liquidate the largest losing orders if 50% is reached . Individual open positions will be closed consecutively to maintain a 50% margin level until there are no open trades or the account remains above 50%.

What is the difference between a stop order and a limit order?

Limit and stop orders are often confused with each other as both are pending orders that instruct the broker to open or close a position when an asset’s price reaches a certain level. Buy limit orders instruct that a position is opened when the market price reaches a level lower than the current price, sell limit orders instruct that a position be opened when the market price reaches a level that is higher than the current market price.

Conversely, buy stop orders are entered above the current market and sell stops are entered below the current price.

Essentially limit orders attempt to get a better price than the current one, whereas stop orders are employed to take advantage of upswings and to minimize loss during downswings. Stop orders are essentially executed as market orders when price action triggers them, as such they can be subject to slippage and poor fills in certain market conditions.

What leverage do you offer

FOREX: Up to 500:1 , depending on leverage chosen when creating account Metals: Up to 100:1 , fixed regardless of account leverage setting Commodities: 20:1 fixed regardless of account leverage setting Index CFDs: 50:1 fixed regardless of account leverage setting Stocks / Share CFDs: 5:1 fixed regardless of account leverage setting Crypto Majors: 25:1 fixed regardless of account leverage setting Crypto Extended: 5:1 fixed regardless of account leverage setting

Does slippage occur on your platform?

Slippage is part of trading and common in the forex & CFD market. It occurs at times of high volatility or low liquidity, as well as during major news announcements or during the release of important economic data.

XBTFX takes all necessary steps to protect traders against market volatility, and our clients benefit from a highly-advanced trade management system that mitigates the risk of negative slippage and guarantees execution at the best available price.

Why has my pending order not been executed?

If your pending order has not been executed, it may be because you did not have sufficient funds to open the position when the pending order was triggered. If this is the case, the deleted pending order will appear in your account history.

Alternatively, your pending order may not have been executed if the specified price has not yet been reached. Please note that for pending Sell Orders, the bid price must reach your specified level; for pending Buy Orders, the ask price must reach your specified level.

Will I experience requotes?

There are no requotes on the XBTFX MT5 platform, as we only have Market Execution for all account types.

What is a CFD?

A CFD, or contract for difference, is an agreement that allows you to speculate on the value of a financial instrument without having to purchase it outright and take possession of it. In a CFD contract, if the value of the instrument in question is higher when the agreement is closed than it was when it was purchased, the seller must pay the difference to the buyer, if the value is lower the buyer must pay the difference to the seller.