Below you will find information detailing the execution risks associated with FXCM’s forex and CFD execution types. Note: For trading accounts opened after exit eas for the forex market February 2018, FXCM always act as the counterparty to every transaction. For every transaction FXCM may choose to hedge your trade immediately with a liquidity provider or FXCM may choose to take the other side of your trade. No Dealing Desk Forex Execution Trading Risks HIGH RISK INVESTMENT Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors.
Before deciding to trade these products offered by FXCM Australia Pty. FXCM MARKET OPINIONS Any opinions, news, research, analyses, prices, or other information contained on this website is provided as general market commentary, and does not constitute investment advice. FXCM will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. INTERNET TRADING RISKS There are risks associated with utilising an internet-based deal-execution trading system including, but not limited to, the failure of hardware, software, and internet connection. Since FXCM does not control signal power, its reception or routing via the internet, configuration of your equipment or reliability of its connection, we cannot be responsible for communication failures, distortions or delays when trading via the internet. NO DEALING DESK EXECUTION MODEL FXCM provides forex execution through a straight through processing, or No Dealing Desk forex execution model. In this model FXCM passes on to its clients the best prices that are provided by one of FXCM’s liquidity providers.
In this model, FXCM does not act as a market marker in any currency pairs. As such, FXCM is reliant on these external providers for currency pricing. SLIPPAGE FXCM aims to provide clients with the best execution available and to get all orders filled at the requested rate. However, there are times when, due to an increase in volatility or volume, orders may be subject to slippage. Slippage most commonly occurs during fundamental news events or periods of limited liquidity.
Orders – All or part of your order will be filled at the next available price with the remaining amount cancelled should liquidity not exist to fill your order immediately. Orders – The order must be filled in its entirety or not at all. The volatility in the market may create conditions where orders are difficult to execute. For instance, the price you receive in the execution of your order might be many pips away from the selected or quoted price due to market movement. In this scenario, the trader is looking to execute at a certain price but in a split second, for example, the market may have moved significantly away from that price. FXCM provides a number of basic and advanced order types to help clients mitigate execution risk.