Trading Related Questions

Can I close Box-Options before their maturity?

You can close Box-Options however the closer to maturity, the lower the redemption value will be. The cash value will be shown in your account diagram.

Can I create a Watch list?

You can create a personal watch list with reference charts.

Can I place orders via E-Mail?

For your own security we do not accept orders via E-Mail.

Can I trade via telephone?

As marketindex is an 100% automated platform, we do not offer a service to trade via telephone.

Can I go short and long at the same time?

Yes, but you have to trade two different underlyings. The same underlying can't be held short and long at the same time.

Can I place orders from abroad?

Yes, you can use any Internet connection throughout the world to use our platform. You can place your orders as normal.

Can I assign my bank advisor to trade on my behalf?

No. If you disclose to other persons your username or your password, you will be liable for their transactions. Marketindex recommends you keep your details confidential.

When selecting my risk class, do I need to have evidence to support my trading experience?

Your selection is your responsibility. No supporting evidence is required.

Can I send an order via fax?

We do not accept faxed orders.

Do I have to trade with a margin?

Yes, trading with the margin protects the customer from losing more funds than they have on their trading account.

When can I trade box options?

Due to the risk associated with dealing box options, ABN AMRO marketindex only takes customers that have enough investment experience. These deals done on the marketindex platform can result in the total loss of the initial money invested. The platform is only for customers with a high risk investment objective.

Why trade currencies?

Currencies are traded for hedging and speculative reasons.

Why do investors have to follow a highly speculative objective to be able to trade with marketindex?

A key characteristic of marketindex Margin-Trading is the Leverage effect. This means, that a relatively small Movement of the market can have a dramatic consequence on the profit or loss. This form of investment is not suitable for all investment types, therefore you should be aware of the risks.

Why do you suspended trading?

An example for suspended trading is if important messages from the company that could affect the quote price, are supposed come in shortly. That way we are trying to avoid currency fluctuations that are too strong and irrational. The suspended trading is for the protection of the investors.

Why did my order trigger, even though the fill price didn't reach my order level price on the chart?

If you use the Candlestick chart, for example, you might not get all the necessary price information. It's often better to use the Min/Max chart. There you will get the lowest bid- and the highest ask price during a certain period of time.

What does it mean to go long or short?

To go long means to buy a market. To go short means to sell a market. If an investor goes long USD/JPY, he buys the USD and sells the JPY. Buying a currency means that you go long with this position. A trader takes a long position in a currency if he thinks that it will climb. If a trader goes short USD/JPY he sells the USD and buys the JPY. A trader will go short in currency if he thinks that it will go down.

What does foreign exchange dealing mean?

Foreign exchange dealing, also FX or forex, is the trade in one currency against another one. Defined in amount of trades, the foreign exchange trade is the biggest market in the world with a daily trade volume of $ 1.5 US trillion dollars. By comparison the New York stock market has a daily trading volume of around $50 billion.

What does Leverage mean?

Leverage is the effect of gaining a large exposure to markets with little money on deposit.

What is bid and ask?

Bid is the price the customer can sell for. Ask is the price the customer can buy for. For example: EUR/USD is traded with a price of 1,3644/47. The bid is the first or the left of the two prices: 1,3644. This price is the exchange rate for buying USD and selling EUR. The ask is the second or the right price: 1,3647. This price is the exchange rate for buying the EUR and selling the USD.

What is the leverage factor?

The leverage factor is the multiple used to calculate the trade value exposure as a proportion to the collateral margin on the trading position. On the marketindex trading account you can use a leverage of 10:1, 20:1, 30:1, 40:1 or 50:1. For example, if you are using a rate of 20:1, this means that you can trade a position that is twenty times larger than your margin. You can also find further information about the leverage factor on the abnamromarketindex.com website.

Where is the difference between a market order and a limit-order?

Market orders will be triggered straight away at the current market price. A limit order is an order to buy a market at no more (or sell at no less) than a specific price. This gives the customer some control over the price at which the trade is executed, but may prevent the order from being executed ("filled").

Where is the difference between an order, a trade and a position?

An order is the aim, to trade with defined conditions. A trade is the accomplishment of the order. A position is the collective of all the trading transactions in a certain market.

What is a CFD?

CFD means "Contract for difference". It is a contract between two parties, buyer and seller, stipulating that the seller will pay to the buyer the difference between the current value of an asset and its value at contract time. (If the difference is negative, then the buyer pays instead to the seller.) Such a contract is an equity derivative that allows investors to speculate on price movements, without the need for ownership of the underlying asset.

What is a Spread?

The difference between the bid and the ask price.

What is a trading unit?

On the marketindex platform 1 'unit' equals 1x the base currency of a currency pair.
For example: 1 unit USD/CAD, USD/CHF or USD/JPY equals 1 U.S.Dollar.
1 unit EUR/USD, EUR/CHF or EUR/AUD equals 1 Euro.
If you are trading a futures derived product 1 unit equals 1x the price in the base currency of the product.

For example: 1 unit of the FTSE = 1 x current price (6200.0) = GBP 6200.00

What is fundamental/tecnical analysis?

Fundamental Analysis uses economic data together with news to analyse the market situation.
Technical analysis uses historical data to predict future prices.

Do you have real-time-Charts?

Yes. The Charts offered on the platform are real-time charts.You can use different time segments: 5 secs, 10 secs, 30 secs, 1 min, 5 min, 15 min, 30 min, 1 hour, 3 hours and one day. For example: Take the marketindex X-DAX, use the 5 second time segment. Every 5 seconds a quote price is generated in the chart and connected with the previous price. This is how the Charts for the X-DAX is created on a 5 second basis.

What is a box option?

An OTC option, where the quote price either hits or misses the box drawn in the chart.

What are financial futures?

Financial futures are leveraged derivatives based on underlying assets. They are high yield and high risk, therefore only suitable for experienced investors.

Which currencies are traded most?

The most traded currencies are: USD, EUR, JPY, GBP, CHF, CAD and AUD.
The most traded currency pair is EUR/USD.

Will Stop Loss or Limit Orders be triggered at the specified price?

The platform will execute your order at or as close to the specified price as possible. You can protect yourself from unexpected price movements when you add price slippage limits to your order. The order will only be triggered if the price is in between these limits.

How do I manage my trading risk?

marketindex offers different options to minimise the risks:

• Stop Loss Order
• Low Leverage
• Airbag

What is the maximum trading amount on currencies?

You can trade up to 5 Million units.

What is the minimum trading amount?

The minimum leverage amount required to open a position of 1 unit.

How often are the quote prices refreshed?

The prices are refreshed real-time. This means, should the market (or price) of an underlying change, this change is immediately shown.

How long can I leave a position open?

Unlimited, until you close or change the order.

How can I enlarge my chart window?

Please click on the icon in the upper right corner of the chart (two overlapping windows). The window will be unhinged from the user interface and displayed separately. The window size can then be altered as you wish. After closing the window the chart display will go back into the user interface.

Will my trade be controlled/supervised?

There is a general Stop Loss for every trade which limits the loss to 50% of the Net Asset Value. Open positions that use more than 50% of the NAV will be closed automatically.

How does marketindex check my positions compared to my margin?

marketindex figures out the needed margin of the positions. The account summary, which gives you information about the deposited margin and the available margin, is always displayed on your monitor.

Will the market drop far after trading has been suspended?

It is not possible to predict market moves after a trading suspension has occurred.

What times are the currency markets open?

Please refer to the Tradable Markets page.