Closing / Opening rules

Beginner Questions
1

Currently using FXCM/UK for testing a C# trading bot that I wrote which implements my strategy, their ForexConnect API is very cool.

Sometimes I try to open a new position and it’s queued, not being opened at the moment of my choice so I was wondering if there are specific rules that would prevent a position for being opened. I understand that you can close any position 1 minute after it has been opened but that’s as far as my knowledge gets.

Need some feedback. Thanks in advance!

2

Hi Enicolasgomez,

In regards to your orders being queued, can you confirm that you are using Market Orders and not Entry Orders?

Just to clarify, there is no 1 minute minimum required before closing a position with FXCM. You can close a position right after you open it. FXCM US clients have to comply with FIFO (first-in, first-out) regulations, which mean that if a US trader has multiple positions in the same currency pair, the oldest one always has to be closed first. However, FIFO regulations do not apply to FXCM UK clients.

Jason

3

Thanks for your response Jason. I have a FXCM UK account which I’m currently using for testing and I was placing an Entry Order instead of a Market Order.

As you are FXCM support, I have a doubt that I would like you to ask. At the Web Trading Station I see that EUR/USD spread is 10 times greater of what is printed on the spread field. E.g, (Ask - Bid) = 51 pips, Spread field = 5.1.

What is this about and how should I handle it in my systems rules? Does it have to do with “PointSize”, which for what I see in ForexConnect interface is one digit less than spread?

4

Hi Enicolasgomez,

Entry orders wait for your specified price to be triggered before opening a position. If you want to open a position immediately, you should use a market order instead.

FXCM quotes forex prices to 5 digits past the decimal point (eg. 1.12345). The fifth digit is only 1/10th of a pip.

In regards to “PointSize”, I must admit I’m not experienced with programming on our APIs. My guess is that it has to do with how many pounds you make or lose every time the price changes by a pip or point. But you can find more information about our APIs on the FXProgrammers site. If you would like further assistance, you can send me a private message with your contact details, and I’ll have a member of our Programming Services department follow up with you.

Jason