Frequently Asked Questions
Trading with OANDA
Why should I trade with OANDA?
- 100% automated - from market-making through trade execution
- Real-time executable pricing - transparent pricing
- Instant settlement, deal confirmation
- Tight spreads on all major currencies offered - regardless of transaction
size
- Smallest transaction sizes available on the Web - no trade minimum
- Trade as little as $1 and receive tight spreads
- No minimum initial deposit required
How much does it cost to trade with OANDA?
There are no costs to trade with OANDA. Trading clients pay the spread only
(2-3 pips on all major currencies traded), no commissions or fixed transaction
fees.
What are OANDA's trading hours?
24 / 7 - OANDA is the only Internet-based platform currently accepting trades
over the weekend.
What currencies can I trade in?
OANDA currently offers the following currency pairs:
OANDA will expand coverage over time.
What is the difference between a Trade and a Position?
Trade- the buying and selling of a currency pair. (Multiple trades = a position)
Position- the aggregate value of all trades within a given currency pair.
How do I manage risk?
The most common risk management tool in FX trading is the stop-loss order.
A stop-loss order ensures a particular position is automatically closed at a
pre-specified price in order to limit potential losses should the market move
against an investor's position. The liquidity of the FX market ensures that
stop-loss orders can be easily executed.
What is the minimum & maximum trade size?
There is NO minimum or maximum trade size.
What is the margin ratio?
You may choose a 20:1 or 30:1 margin ratio for your currency trading account
at the time when you create your account. For 20:1 accounts, this means you
take a position that is 20 times greater than your margin availability. Margin
ratio can be changed at any time. To change your account margin ratio, please
use our secure online form: change
account margin ratio.
Do I have to trade on margin?
Yes, all trades are conducted on margin as to protect customers from losing
more than the current value of their accounts.
How does FXTrade manage my position versus my margin limits?
FXTrade automatically checks margin requirements every time you issue a trade
and every time there is a price movement in a currency pair. An Account Summary
posting the Margin Used and Margin Available will be present on the trading
screen at all times. For accounts with 20:1 margin, when/if your margin availability
declines to 4%, a warning will be issued via a pop-up window (only if you are
logged in). You will receive a similar warning at 3%. If your open positions
continue to decline below the 2.5% margin availability, FXTrade will automatically
close out all positions. This will protect you from losing more than your margin
deposit.
What is a margin "call" as it relates to OANDA's
FXTrade Platform?
OANDA's margin call occurs when a trader's available margin drops below 2.5%
for accounts with 20:1 margin ratio and at 1.66% for accounts with 30:1 margin
ratio.. At this threshold, FXTrade will automatically close the trader
out of all open positions.
Where do the FXTrade rates come from?
OANDA uses advanced market making technologies that utilize proprietary forecasting
and risk management engines to provide a real-time transparent market.
How often are the prices updated?
The prices are updated in real-time, which means when the market (or price)
for a currency changes it will be reflected on the front-end simultaneously.
Do you have real-time graphs?
Yes. The graphing feature in the FXTrade user interface provides real-time
graphs tracking price movements in the following granularities: 5 sec., 10 sec.,
30 sec., 1 min., 5 min., 30 min., and 1 day. You can view multiple graphs simultaneously
by clicking on the desired currency pair identifiers in the Current Rates Table.
Why is there a space on the graph between the chart lines?
The bottom line represents the bid prices, the top line represents the ask
prices and the space between the lines represents the spread.
Can I use the graph to do any studies?
For specific questions regarding the features and functionalities of the FXTrade,
please refer to FXTrade User Interface.
What do I do if there is a problem - how do I contact help?
OANDA has a client services line dedicated to trading and account related issues
that can be reached by dialing +1 212-858-7690, or by contacting
us online.
For questions/problems regarding other trading tools accessible via the platform
(FXDaily, Fxgraph), contact us using our contact
form.
I lost my password, how can I retrieve it?
Under FXTrade's Help and Customer Service section you can use the to 'Forgot/Retrieve
Password' link to retrieve your password. Upon completing the necessary
fields, your password will be emailed to your given email address.
Can I make a trade over the phone?
As a 100% automated platform, FXTrade does not offer a phone trading option.
The trading platform does, however, allow users to place stop-loss, take-profit
and upper and lower bound limits to facilitate trades. These orders will automatically
be honored/executed regardless of system failures or the customer's inability
to gain access to the system.
What additional services will I receive as a client of
OANDA?
The Olsen Information System analytical tools, and the OANDA currency
conversion and localization
tools which include, FXDaily,
FXHistory, FXTrends,
FXGraph,
and FXMap.
