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The US Market-Wide Circuit Breaker (MWCB) halts trading in all US-listed stocks when the S&P 500 index falls 7%, 13%, or 20% from the prior day’s closing price, under NYSE Rule 7.12,…
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The day trading rule, under the former American FINRA 4210 standard, applied to any client who executed four or more intraday trades within five consecutive business days, provided those trades exceeded 6%…
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The Wednesday triple swap refers to the rollover charged overnight from Wednesday to Thursday on most forex pairs, where the amount corresponds to three nights of swap rather than one. This tripling…
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Margin close-out on a CFD account, also called stop-out, is the regulatory mechanism that forces a broker to automatically close a client’s open positions once available funds fall below 50% of the…
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Forex spread cost is the difference between the sell price (bid) and the buy price (ask) of an instrument, and it represents a transaction cost for the investor even when no classic…
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The ESMA leverage cap CFD rule sets a ceiling that drops from 30:1 to 2:1 depending on the underlying asset, for retail clients in Europe: 30 to 1 on major currency pairs,…
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An OCO order cancellation refers to a pair of two linked orders, typically limit orders: as soon as one is filled, the other is automatically cancelled, with no manual action from the…
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A Forex circuit breaker does not exist in the form American stock traders know: there is no official price band that halts the quoting of a currency pair. In the United States,…
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Between a market order and a limit order, the guarantee offered is not the same: a market order generally executes right away, but at a price that is not guaranteed and that…
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A stop-limit order triggers when the price reaches a first price, called the stop price, then turns into a limit order that only executes at the set limit price or at a…
