Tuesday, June 9, 2015

The Real Value of STP Trading

In today's market, with many traders buying ready-made EAsand trading systems, or investing through a fund manager, there are many traders are not aware of the real value of trading with an STP Forex broker. 

This article is to highlight, directly, the value of trading with an STP Forex broker comparing to a market maker broker.

No Re-quotes, Stop Hunts or any other Dealing Desk Intervention
When trading on the DMA, STP or ECN Forex model, you are guaranteed no re-quotes, stop loss hunting and other strategies that are employed by market makers to ensure that they profit from your losses.

The interbank model is as pure a model of trading forex as is possible. The broker does not benefit from losses and therefore, its interest is in helping its clients generate higher Forex volumes. Yadix provides many beneficial conditions and trading tools to help you grow into a better, more profitable Forex trader.

Fast Order Execution                  
Yadix delivers ultra- fast and low latency order execution by using the Equinix Financial Exchange, a leading Financial Services technology provider. 

Equinix servers are located globally and connects clients to the main MT4 trading server through this optic-fibre technology.  All clients trades are executed through the large network of trading hubs and bank servers, located in the Equinix data centres to reduce order execution time and precise order fills. 

Highest Level Liquidity            
A deep pool of liquidity is provided through top FX Banks that compete for your forex trades and deliver the lowest spreads to Yadix clients. Multiple providers of liquidity ensure that there are no strategy restrictions giving you the freedom to scalp as aggressively as you want.

Some of the leading Liquidity Providers competing for your trades: UBS, Citibank, JP Morgan, Bank of America, Deutsch Bank, Barclays Bank.

Price Improvements
Slippage is generally reported as a negative of trading on the interbank market, however, you rarely read about positive slippage. Positive slippage is when an order is executed at a more positive price to give the trader additional profits on a pending order. 

Both positive and negative slippage is a factor that all traders need to consider and cannot be avoided when trading real Forex markets. Furthermore, there are no brokers that can guarantee slippage, unless they employ market making tactics.

When trading economic market data releases, there are a few steps to help traders being affected by slippage, they are using a VPS, balance trading and take into account slippage and avoid trading during these highly volatile periods. After all, when trading on the true Forex markets, slippage is part of trading and cannot be controlled or compensated.

Accurate Order Fills
The combination of Equinix technology and the a large pool of liquidity ensure that your Forex orders are being filled as fast as possible to the biggest liquidity providers, as such orders are executed extremely accurately including tight stop loss and take profit filling.

No restrictions for Scalpers, EAs or HFTs (SL/TP and pending orders)
As a true Inter-bank broker (DMA, ECN, STP), Yadix can deliver no restrictions on any pending orders or order modification. Unlike dealing desk brokers, Yadix gives its clients the ability to trade without a minimum level of pips on stop loss, take profit or any pending order types. There are also no time limits on the time that your orders need to remain open. Ideal for Forex Scalpers.

Low Spreads
As we all know, low spreads are not just important, but a major factor in all Forex trading strategies. At Yadix, we offer two account types that offer Raw Spreads (the spread that the Broker receives from the liquidity providers). These Raw spreads are passed on to clients (without any mark up) on the Pro and Scalper accounts. This ensures low cost and the most accurate triggering of orders when using an EA or Automated trading strategy.

To learn more about how STP should be your broker choice, please feel free to visit our live chat service or read more: http://www.yadix.com/about-us/why-trade-with-yadix/

Friday, June 5, 2015

100% True Hedging + Benefits

As a true STP/ECN Forex Broker, Yadix is focused on providing unrestricted trading conditions and execution benefits to its clients.

Traders that implement hedging strategies, manually or through their expert advisors can take advantage of zero margin requirements for opening hedged positions. 

Unlike many other brokers, that charge margin for at least one leg of the hedged order, when you open a Buy and Sell position on the same instrument and in the same lot size, The Yadix MT4 requires zero margin. 

An additional advantage that traders can take benefit from is hedging even when the order has  negative free margin. This is an underestimated benefit as it can help Forex risk management during periods of draw-down and help you control orders from being stopped out.  Imagine that a long 1 lot EUR/USD order is your biggest cause of negative free margin, by opening a new short leg of  1 lot EUR/USD, your margin used is set to zero and could set your free margin to positive.

To learn more about FX hedging advantages and more benefits, feel free to contact the Yadix customer support team.