Please be sure to read and understand the following:
High risk investment
Margin trading involves high risk, and its loss may exceed the deposited funds, which may not be suitable for all investors. Before you decide to buy or sell the products provided by Hongding finance, you should carefully consider your investment objectives, financial situation, needs and trading experience. Hongding finance may provide general advice that does not take into account your investment objectives, financial situation or needs. The general advice provided or the content of this website will not be personal advice. Possible scenarios include losses in excess of funds deposited, so you should not use capital that cannot afford to lose for speculation. The investment shall be aware of all risks related to margin trading. ACDFX recommends that you seek advice from an independent financial advisor.
Network transaction risk
There are some risks in using network transaction execution system, including (but not limited to) hardware failure, software failure and network system connection problems. Due to ACDFX 's inability to control the strength of the connection signal, its receiving or router lines, your equipment configuration or the reliability of its network connection, we are not responsible for any communication failure, mistransmission or delay in the network transaction. Hongding finance has backup system and emergency response plan to minimize the possibility of system failure, which includes allowing customers to conduct transactions by telephone.
In the first few hours after the opening of the market, transactions tend to be quieter than usual until the opening of Tokyo and London. When the market is quiet, there are fewer buyers and sellers, and the price difference is large, largely because the first few hours of opening are still weekends for most parts of the world. Liquidity may also be affected when the transaction is transferred (5:00 p.m. EDT), because many of our liquidity providers will temporarily cut off the network to settle the day's transactions, which may also lead to a large bid ask spread at that time due to lack of liquidity. In the absence of liquidity in the market, it may be difficult for traders to establish or close positions at their required prices, encounter delays in execution, and obtain an execution price that is far from the required price.
Market opinion reference
Any comments, news, research, analysis, price and other information published on this website can only be regarded as general market information and does not constitute investment proposal. ACDFX will not be liable for any loss or loss (including but not limited to any loss of profit) caused by the direct or indirect use or reliance on such information.
Order execution mode
Hongding finance provides contract order transaction execution through ACDFX processing mode. Under this mode, the quotation provided by ACDFX to customers is the best price given by one of its liquidity providers plus the additional difference for each currency pair or contract. Under this model, Hongding finance is not a market maker of any currency pair or contract. Therefore, ACDFX relies on these external providers to provide international futures and contract quotations. Although this model can promote efficiency and market pricing competition, a number of liquidity constraints may affect the final execution of your orders.
Delayed order execution
For different reasons, trading delays may occur when using the execution mode of international futures without trader platform of Hongding finance, such as the Internet technology problem of traders connecting to Hongding finance, the delay in order confirmation of liquidity providers, or the lack of available liquidity of the currency pairs that traders try to buy and sell. Based on the inherent volatility of the market, it is very important for traders to have an operational and reliable internet connection. In some cases, due to the insufficient signal strength of wireless or dial-up connection, the personal internet connection of the trader fails to maintain a stable connection with the server of Hongding finance. The interruption of the connection path sometimes interferes with the signal, resulting in the abnormal operation of ACDFX trading platform, thus delaying the data transmission between the platform and ACDFX server. To check the Internet connection to the ACDFX server, you can test the connection between your computer and the server.
Trading order reset
There may be so many orders during the market fluctuation that it is difficult to execute the transaction at the designated price. By the time the order is executed, the bid / offer price that liquidity providers are willing to accept may have changed by several points. If there is insufficient liquidity to execute the set range order, the order will not be executed. In the case of limit orders or limit orders, the instructions will not be executed, but will be reset until they are executed. Please keep in mind that the limit order and limit order guarantee the price, but they cannot guarantee the execution of the transaction. Depending on the relevant trading strategy and relevant market conditions, traders may pay more attention to the execution of the transaction than the price obtained.
Bid ask spread
The bid ask spread may sometimes be higher than the general spread. The bid ask spread may change with market liquidity. During the period with limited liquidity, when the market is opened, or during the 5:00 p.m. transfer period of U.S. Eastern time, the bid ask spread may expand due to the uncertainty of the price direction or the soaring market volatility, or the lack of market liquidity. It is not uncommon for bid ask spreads to widen, especially when transferring positions. Trading is usually a very quiet period, because New York's working day is just over, while Tokyo's new working day is still several hours away. Recognizing these patterns and taking them into account when trading at these times with open orders or building new trades can improve your trading experience. This could happen during press releases, and the bid ask spread could increase significantly to compensate for the huge market volatility. Higher bid ask spreads may only last for seconds, or as long as minutes. ACDFX strongly encourages traders to be cautious in their transactions during the press release, and should always pay attention to their net account value, available margin and market risk. Higher bid ask spreads may adversely affect all positions in the account, including hedging positions.
Trading order suspended
Orders may be suspended during periods of high trading volume. In this case, the order is being executed, but the execution of the transaction has not yet been confirmed. The instructions will be displayed in red and the status column of the instructions window will be displayed as executed or in process. In such cases, the order is in the process of execution, but it has yet to be executed until the confirmation provided by the quotation is obtained by ACDFX liquidity provider. During frequent transactions, there may be multiple instructions waiting to be processed. The increase of waiting instructions sometimes affects the liquidity provider to delay the confirmation of several instructions.
Depending on the type of instruction issued, the results may vary. If the "set range" fails to be executed within the specified range, or if the delay is over, the instruction will not be executed. If it is set as a market order, the order will be closed at the next available price in the market as far as possible. In both cases, the "status" column of the "instruction" window is generally displayed as "executed" or "in process", and the relevant transaction will take a little time to appear in the "open position" window. Depending on the type of instruction, the transaction may have been executed, but the display is delayed due to the busy network.
Keep in mind that each instruction is created only once. Repeatedly creating the same order may slow down or lock up your computer, or inadvertently open a position other than what you want. If you fail to connect to the ACDFX trading platform at any time to manage your account, you can contact the customer service center directly.
Hide order quote
When the liquidity providers of international futures and contracts who offer quotations to Hongding finance do not actively create a market for a certain currency pair, and the liquidity decreases as a result, hidden quotations will appear. Hongding finance will not deliberately "hide" the offer; however, sometimes, due to the interruption of contact with a certain provider, or a certain announcement has a significant impact on the market, which limits liquidity, it may lead to a substantial increase in the bid ask spread. Concealment of quotation or expansion of spread may cause the trader's account to need additional margin. When the instructions issued for a currency pair are affected by the hidden quotation, the profit / loss figure will be temporarily displayed as zero until the currency pair has a tradable price, and the system can calculate the profit / loss balance.
Trade order hedging
The hedging function allows the trader to hold the buying and selling positions of the same currency pair at the same time. When entering the market, the trader does not need to choose the buying and selling direction for one currency pair. Although hedging can reduce or limit future losses, it cannot avoid further losses on the account. In the international futures and CFD contract markets, traders can fully hedge on quantity, not price. This is due to the difference (or bid ask difference) between the buy and sell prices. ACDFX traders will need to deposit margin in one of the directions of hedging positions (the direction with a large number of positions). Margin requirements can often be monitored in a simple quotation window. Traders may feel that hedging functions work together, but should be aware of the following factors that may affect the hedging position.
Decrease in margin
Due to the possible increase of bid ask spread, the remaining available margin in the account will be reduced. Even if an account has been fully hedged, additional margin may be required. If the remaining margin is not sufficient to maintain any open positions, the account may need to add margin, and the open positions in the account will be closed. Although holding long and short positions makes traders feel limited by the impact of market changes, in fact, any time the spread between the sale and purchase increases and the available margin is insufficient, there is an absolute need to add margin to all positions.
Order transfer cost
Rollover is the process of balancing and opening positions at the same time of the day to avoid settlement and settlement of currencies. Rollover (overnight interest) also refers to the interest paid or obtained by holding positions in trading accounts overnight. The overnight time refers to 5:00 p.m. after Mido time on various platforms of Hongding finance. The time to close and reopen positions and calculate overnight expenses is generally referred to as trade rollover tro. It should be noted that the overnight interest paid will be higher than the interest earned. If all positions in the account have been hedged, the overnight interest spread paid and earned can still result in a loss, although the positions are equivalent as a whole. During the transfer period, the bid ask spread may be larger than at other times, as liquidity providers may be temporarily disconnected to settle the day's transactions. Please manage position accordingly during position transfer and understand the impact of bid ask spread on existing / open position or new position / order execution
Fluctuate every point of value
The fluctuation of exchange rate or the value of each point is defined as the value of a currency to a point. This cost is equivalent to the profit or loss caused by every change of the exchange rate of the currency pair, and is shown in the currency unit of the trading currency pair's account. To view the value of any currency pair on various platforms of Hongding finance, you can select "display" in the menu bar, then click "window display", and then select "simple mode". If "simple mode" is selected, just click "simple quotation window" in the quotation window, and each value will be displayed on the right side of the window.
Quote reverse spread
When you conduct international futures trading through the ACDFX platform to buy and sell international futures or other contracts in the execution mode of no trader platform, you are trading with the quotation provided by multiple liquidity providers plus the idea of the elevation of ACDFX . In rare cases, the offer may be disturbed. Although this may only last for a short time, it can cause the spread to reverse. ACDFX advised customers to avoid setting up market price lists in case of such a rare situation. Although the "no cost transaction" is attractive, it must be kept in mind that the prices are not true, and the transaction price may be quite different from the displayed price. If the transaction price is not the actual exchange rate provided by the liquidity provider of ACDFX , ACDFX will treat the transaction as invalid and reserve the right to cancel the transaction. In such cases, the client can only set a range of instructions or suspend the transaction to avoid relevant risks.
Holiday / weekend execution
Trading desk time: the official trading hours of the trading desk are from 5:15 p.m. Sunday to 4:55 p.m. Friday. Please note that previously established instructions may be executed before 5:00 p.m. EDT, while traders who establish transactions between 4:55 p.m. and 5:00 p.m. EDT may not be able to cancel pending instructions. If the GTC is just delivered at the close of the market, it may not be executed before the opening of the market on Sunday. Please be careful when trading near the close of Friday, and all the above information should be taken into consideration in the trading decision. Trading desks may change their opening or closing times as they rely on offers from liquidity providers to tripod finance. Most of the major banks and financial centers are closed outside the above periods. Due to the lack of liquidity and trading volume at the weekend, the execution of orders and quotations will be blocked.
Opening update quotation
In a short period of time before opening, the trading desk shall update the quotation to reflect the market price at that time and prepare for opening. During this period, the transactions and instructions reserved at the weekend are waiting to be executed, so the newly established instructions cannot be executed at market price. After opening, the trader can create a new transaction and cancel or change the original order.
Market quotation short jump
The opening price on Sunday may be the same or different from the closing price on Friday. Sometimes the opening price on Sunday is close to the closing price on Friday; in other times, the closing price on Friday may be very different from the opening price on Sunday. When important news or economic events change the market's view on the value of a certain currency, the exchange rate may appear a large jump. Traders should be aware of the possibility of a price jump over the weekend when holding positions or placing orders.
Price limit orders are usually executed at required or better prices. If there is no specified price (or better) in the market, the order will not be executed. At the opening of Sunday, when the market price reaches the stop loss level, the order will become a market order. The limit order will be executed in the same way as the limit order. Stop loss report will be executed in the same way as stop loss.
Weekend position risk
Some traders worry that the market is very volatile during the weekend, the exchange rate may jump short significantly, or that the weekend risk is not consistent with their own trading style, so they can directly level the positions of the hanging orders and positions before the weekend. If a trader holds an open position over the weekend, he / she must understand that there may be major economic events and the impact of news release on the value of the relevant position. Based on the volatility of the market, it is not uncommon for prices to deviate from many of the ideas at the time of opening. We encourage all traders to take this into account before making a decision.
Chart price and market price
It is very important to distinguish the reference price (shown in the chart) from the tradable price (shown in the ACDFX trading platform). The reference quotation can indicate the market price and the change range. These prices come from many aspects such as banks and settlement institutions, which may not necessarily reflect the prices of liquidity providers of Hongding finance. The reference price is usually very close to the transaction price, but it can only play an indicative role in the market reality. The tradable offer guarantees specific execution and low transaction cost. As there is no single central exchange in the international futures market for all transactions, the quotations of each international futures dealer are slightly different. Therefore, if the quotations of the third-party chart providers are not quoted by a market maker, they can only be used as reference prices, not necessarily reflecting the actual exchange prices that can be traded.
Mobile trading platform
There are a series of inherent risks in the use of mobile trading technology, such as repeated instructions, quotation delay and other problems caused by mobile connection. The price displayed by the mobile platform is only the display of the executable price, which may not reflect the actual execution price of the instruction.
Mobile trading platform uses public communication network lines to transmit information. ACDFX will not be responsible for any and all situations such as the delay of quotation or the failure of transaction due to network transmission problems or any other problems beyond the direct control of ACDFX . Transmission issues include, but are not limited to, the strength of the mobile signal, the delay of the mobile phone or any other matters that may arise between you and any Internet service provider, telephone service provider or any other service provider.
Please note that some functions of ACDFX trading platform will not be provided on ACDFX mobile trading platform. The main differences include (but are not limited to) the chart will be limited and will not show daily overnight interest and maintenance margin requirements for each financial instrument. It is highly recommended that customers familiarize themselves with the functions of ACDFX mobile trading platform before managing real accounts through mobile devices.
Order transaction slip point
SDF is committed to providing customers with the best execution of transactions and is committed to closing all orders at the required price. However, sometimes orders may be affected by slippage points due to market volatility or increased trading volume. Slippage occurs most often during basic news events or periods of limited liquidity. In the case of trading positions (5:00 p.m. EDT), this is a period known to have limited liquidity tendency, because many liquidity providers will settle the transactions on that day. During these periods, your order type, number required, and specific order instructions may have an impact on the overall transaction execution you have obtained.
Examples of specific instruction instructions include: GTC: your entire instruction will be executed at the next available price upon receipt. Immediate or cancellation (IOC): all or part of your orders will be executed at the next available price, and if there is no liquidity to execute your orders immediately, the balance will be cancelled. Full execution or immediate cancellation (FOK): the instruction must be executed in full, otherwise it will not be executed.
Conditions that may make it difficult to execute orders during market volatility. For example, the price you get when you execute your order may differ by many points from the price you choose or quote based on market changes. In this case, traders expect to execute transactions at a specified price, but for example, the market may have deviated significantly from that price in less than a second. A trader's order will then be executed at the next available price for that particular order. Similarly, the international futures execution mode of ACDFX platform based on ACDFX must have sufficient liquidity to execute all transactions at any price.
ACDFX provides a variety of basic and advanced instruction categories to help customers reduce execution risk. One way to reduce the risk related to sliding point is to use the "set range" function on the ACDFX platform. The "set range" function allows traders to specify the amount of potential slippage they are willing to accept for the market price list through the range. Zero means no sliding point is allowed. If zero is selected in the "set range", it means that the trader requires that his order can only be executed at the price selected or quoted instead of any other price. Traders can choose to accept a larger range of allowable sliding points to improve the probability of instruction execution. In this case, the instruction will be executed at one of the following available prices within the specified range. For example, a customer may indicate that they are willing to accept a transaction within 2 pips of their requested order price. If there is enough liquidity, the system will execute the instruction within the acceptable range (i.e. 2 points). If the instruction cannot be executed within the specified range, the instruction will not be executed. Note that the setting range can only specify a negative range. If there is a better price when the transaction is executed, the amount of positive price improvement available to the trader is not limited to the specified range.
In addition, when triggered, the stop loss will become a market order that can be executed at the next available market price. Stop loss guarantees the execution of the transaction, but does not guarantee that it can be executed at a specific price. Therefore, depending on market conditions, stop loss orders may slip.
Additional deposit and qiangping
When your available margin falls to zero, an additional margin alert will be triggered. Your account transaction bar will display in red and blink constantly, which will happen when your floating loss reduces your net account value to less than or equal to your margin requirement. Therefore, unless otherwise noted, the consequence of any margin increase will be the subsequent forced liquidation of the system.
The idea of margin trading is that the client's margin acts as the actual deposit of the trading face value of the position held, and the client who conducts margin trading can hold a position whose value is much higher than the actual capital amount. ACDFX trading platform has margin management function and allows the use of leverage. Of course, margin trading involves risk, because leverage can have a positive or negative impact on you. If the net value of the account falls below the margin requirement, Max market FX trading platform will trigger an order to close all positions opened. If the net value of the account is insufficient to maintain the opening position at that time due to excessive leverage or trading loss, additional margin will be generated, and all opening positions must be closed (automatic settlement).
Please keep in mind that if the available margin on the account is zero, the account will start red alert. When the margin ratio (advance payment) of your account is lower than the warning line of 60%, the system will start to close the current opening position from the position with the most loss, when the margin ratio (advance payment) is equal to or lower than the warning line 50% of the time, the system will trigger forced closing of all positions opened, and the automatic settlement program is designed to operate fully automatically.
Although the purpose of the margin call function is to close the position when the net value of the account falls below the margin requirement, in some cases, there is no liquidity at the actual margin call price. As a result, the net value of the account may fall below the margin requirement when the order is executed, or even cause the net value of the account to become negative. This is particularly common when exchange rates are short or in periods of extreme volatility. ACDFX advised traders to use stop loss instead of margin call as the final stop loss to limit the downside risk.
We strongly recommend that the client maintain an appropriate margin amount in the account at all times. You can go to the user center and apply to adjust the margin leverage ratio to change your margin requirements, which will be approved by Hongding finance. Hongding finance may change the margin requirements according to the account size, opening position at the same time, trading mode and market conditions.