What is LiteForex's ECN account and how orders are executed? Table of Contents

How orders are executed in ECN accounts of LiteForex?

Methods of execution of market orders on ECN accounts are structured to provide benefits such as instant execution of orders and the absence of dealer intervention is not associated with the probability of occurrence of a large slippage in a period of high market volatility.

Such protection of the client’s interests is implemented by comparing the price level of the request received from the client of a market order with the most favorable price at which this order can be executed.

If the difference exceeds the slippage limit, then the execution of such an order is interrupted with the subsequent rejection of the client’s Market Order.

The value limit slippage is adaptive and depends on the degree of price volatility in the initialization time of the client application for the execution of a market order.

The same principle is activated deferred Stop orders to buy and sell (the Pending the STOP BUY / the SELL ‘orders’).

Stop Loss orders and Stop Out procedures are executed at the best available price on Market Place and in fact, may differ significantly from the order level or calculated values ​​in case of forced liquidation of positions carried out according to the Stop Out procedure.

Prices for ECN accounts are rounded to 5 decimal places, for example, 0.12345.

Within 1-2 seconds after the order is executed, a confirmation window appears on the screen.

Detailed information about the deal can be viewed on the Trade and Journal tabs in the Terminal window in the MetaTrader trading terminal.

Go to LiteForex’s Official Website

What’s the difference between NDD, STP and ECN Forex brokers?

Spreads of LiteForex’s ECN accounts

For ECN trading, it is preferable to use the term “difference” (DAB) instead of the term “spread”.

Under DAB refers to the difference between the best price of the ASK (Offer) and the best price of the BID.

DAB is a variable and non-fixed value.

LiteForex provides ECN quotes directly, meaning you see the best BID price and the best Offer (ASK) price immediately after they come LiteForex’s clients and other liquidity providers involved in the pooling.

Thus, LiteForex does not manipulate or add points to BID and ASK prices.

On average, DAB on ECN accounts is significantly lower than fixed spreads on Micro accounts.

The minimum DAB difference for all financial instruments on ECN accounts is 0 pips.

See the condition of spread on LiteForex’s Official Website

How to calculate commissions of ECN accounts?

The commission for a completed transaction for positions with a volume of 100,000 units of the base currency (BC) or the underlying asset (BA) is 5 units of BC or BA (or, accordingly, 3.6 units of BC or BA for accounts with a net deposit of more than 50,000 USD).

Consider the formulas for calculating the commission for currency pairs: where USD is the quoted currency:

  • Contract size = 100,000 BC units;
  • 1 unit of BC is 1GBP for the GBP / USD currency pair, 1 EUR for the EUR / USD currency pair, etc .;
  • Commission = 5 units of BC for a traded volume of 100,000 units of BC;
  • Trading volume, expressed in units of BV – 100,000 × V (lots);
  • Trading volume, expressed in USD – 100,000 × V (lots) × Price.

It follows from the definition that the commission, expressed in (USD) for a traded volume of 100,000 units of BV (1 (lot)), is: 5 units of BV = 5 • Price (currency pair).

Let us assume that the commission for the traded volume V (lot), is equal to X (USD).

Use LiteForex’s Online Calculator

Available order types on LiteForex’s ECN accounts

On ECN accounts, you can open the following types of orders:

  • Stop Loss order;
  • Take Profit order;
  • Limit Order;
  • Stop Order;
  • Market Order.

The maximum order volume on an ECN account is not limited and depends on the liquidity available in the market.

The maximum number of orders on ECN accounts is not limited.

Telephone dealing is an opportunity to call a broker with a request to close a position in case of emergency, for example, when you are far from your computer or there is an interruption in the Internet connection. See Regulations for telephone dealing.

Open LiteForex’s ECN Account

Swap Points and Islamic Swap-Free accounts

You can also view the swap values ​​in the MetaTrader terminal. To do this, follow these steps:

  1. Right-click in the Market Watch window.
  2. Select the Symbols command.
  3. Select your currency.
  4. Click the Properties button. Here you will see the values ​​for swap long positions and swap short positions.

LiteForex provides swap-free accounts, which gives Muslims the opportunity to trade Forex in accordance with Sharia law.

If you are unsure if your account is a swap-free account, please send a request to the support team.

Find out more about LiteForex’s Swap Points

Margin Call and Stop Out for LiteForex’s ECN accounts

In ECN accounts, the Margin Call order is executed by the broker automatically when the margin level on the client account is less than 100% (that is, when the amount of free funds is equal to the margin level for open positions).

In order to prevent the trader’s losses from exceeding the margin and free funds on the trading account, a critical loss level is set – Stop Out, equal to 50% for ECN accounts, upon reaching which positions are automatically closed by the broker at the current market price.

Thus, a positive account balance is maintained.

It should be borne in mind that if a position was closed as a result of Stop Out, then information about this is contained in the MetaTrader trading terminal.

Open the Terminal window, the Account History tab, and examine the contents of the Comment column.

If you do not see this column on the Account History tab, right-click on the record with any closed position and enable the option to view the Comments value.

You can see the margin level in the MetaTrader trading terminal, in the Terminal window on the Trade tab.

Find out more about LiteForex’s Margin Call

No Limits on Trading Strategies

LiteForex’s ECN accounts allow any type of trading strategy, such as Scalping, a technique that is designed for short-term trading.

It provides for the receipt of profit from transactions, the duration of which ranges from a second to several minutes.

Hedging is allowed on ECN accounts too.

This means that you can simultaneously open opposite positions (buy and sell) for the same financial instrument (currency pair) with the same volume.

The collateral for hedged positions (hedged margin) is 50% of the total collateral.

Open LiteForex’s ECN Account

Market Depth on LiteForex’s ECN accounts

On ECN accounts, the best 5 BID and ASK prices are displayed in the order book along with the volume available for buying or selling.

You can download and install the One-Click Trading Level 2 plugin to monitor market depth.

Go to LiteForex’s Official Website