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Faq

Trading at 10Pips is very simple straight forward.

10Pips revenue is from the difference between buying and selling spread so there are no commissions or any hidden fees.

On the opening screen you will find the buy/sell price of all 10Pips instruments. While entering an order for an instrument you can also add a “stop loss”, “profit limit” or “trailing stop” order to protect your position. Any financial instrument purchased at 10Pips can be sold seconds later.

10Pips trading – example:

  • A trader signs up and deposits $10K
  • P&L (profits and losses of all open positions + daily premiums)=0
  • Balance = $10k (deposits – withdraws + P&L of closed positions= 10,000-0-0=10,000)
  • Available balance = $10k (balance + P&L of open positions – initial margins)
  • Equity = $10k (balance + P&L of open positions)
  • 17:00 – The trader thinks that XXX share is going to fall; he goes “short” on XXX. He presses sell next to XXX in the opening screen.
  • 100 shares (in CFDs)
  • XXX sell price = $290:
  • Close at profit = $280 (the profit will be $1000k. 100 * $10 per share)
  • Close at loss = $310 (the loss will be $2000k. 100 * $20 per share)
  • Total amount = 10 * 290 =$$28k
  • Initial margin in this example is 10% = $2900
  • Maintenance margin in this example is 5% = 1450$ (available balance needed to maintain this position)
  • Balance = $10k
  • P&l = – $50 (100 shares * 50 cents spread per share)
  • Available balance = $10k – $2900 – $50 = $7050
  • Equity = $9950
  • 21:00 – XXX climbs to $300
  • Balance = $9950
  • P&L = -$1000 (100*$290 – 100*$300)
  • Available balance = $10k – $1000 – $2900 – 50 = $6050
  • Equity = $8950 ($10k – $1000 – $50)
  • The trader decides to cut losses and buys XXX, he presses “close position” in the opening screen next to the position name.
  • 21:00 – The order executes at $300, a loss of $1000 on this trade.
  • Balance = $8950
  • P&L = 0 (no open positions)
  • Available balance = $8950
  • Equity = $8950

10Pips practice account

The easiest way to learn how trade works on 10Pips is our practice account. 10Pips allows you to use our free trading software and trade demo money with the same rules of real money. This gives the trader a chance to test our system and make the most of it when upgrading the account to real money.

10Pips practice account benefits:

  • Free practice account
  • Unlimited time account – Practice until you are ready for the real thing
  • Market conditions – practice account trading conditions and restrictions are real market conditions.
  • No risk – Learn all about 10Pips features and the trading markets without risk
  • Find your trading strategy – Practice trading strategies and techniques before you start trading

Opening a new position

Press the "buy" button next to the specific instrument on the opening screen (most of the following orders can be also executed trough the specific market screen or the chart). A popup will appear with the following options:

Amount (for Forex): When trading Forex there is a basic unit, enter the number of lots you want to purchase.

Number (of shares or stocks): This trade is being executed through CFDs, therefore only a few percents of the value you asked for will be needed.

Number of contracts (for indices): Each Index point worth a certain amount; usually a 1USD or 1EUR (depends on where the index is traded)

Close at profit rate (stop limit): If the instrument reaches a certain price, sell it.

Close at loss rate (Stop Loss): if the instrument reaches a certain price sell it.

Only buy when rate is (Limit Order): If the instrument goes above or below a specific price you choose, buy the instrument.

Trailing Stop: Choose this option to set the stop loss rate to a number of pips below the max price the financial instrument will reach.

Sell – press the sell button next to the instrument if you want to "go short".

Example:

  • New account with a $1000 deposition
  • Balance = $1000 (Deposits – Withdraws + P&L of closed positions).
  • P&L = 0 (total profits and losses of all open positions including daily premiums).
  • Available Balance = $1000 (Balance + P&L of open positions – Initial Margins).
  • Equity = $1000 (Balance + P&L of open positions).
  • 20:05 – 'Buy' order for Oil which is traded at $60 a barrel:
  • Barrels: 100
  • Close at Profit Rate = $64
  • Close at Loss rate = $55
  • The total amount bought = 100 * $60.00 = $6000
  • Initial margin (in this example) needed for Oil is 10% = $600
  • Maintenance Margin (in this example) needed to maintain an 'Oil' position is %5 = $300
  • Balance: $1000.
  • P&L = 0. (Usually the spread of oil is 5 cents so you would have a P&L of -$5)
  • Available Balance (after you bought oil) = $400 ($1000 – 10%*$6000 = $400).
  • Equity = $1000
  • 21:05 – Oil price jumps to $64.
  • Balance = $1000
  • P&L (100 * $64 – 100 * $60) = $400.
  • Available Balance ($1000 – 10% * $6000 + $400) = $800.
  • Equity ($1000 + $400) = $1400.
  • 21:05 – Oil price jumps to $66 – before "take-profit" order executes.
  • Balance = $1000.
  • P&L (100 * $66 – 100 * $60) = $600.
  • Available Balance ($1000 – 10% * $6000 + $600) = $1000.
  • Equity ($1000 + $600) = $1600.
  • 21:05 – 'Take Profit' order executes
  • Balance: $1600.
  • P&L (no open positions) = 0.
  • Available Balance = $1600.
  • Equity = $1600.

Closing a Position

Press the 'Close' button below the instrument in the opening screen or next to the relevant position in the ‘Open positions’ tab.

Margin Call

Maintenance margin level is the minimum amount needed in your equity to maintain an open position. 10Pips will close open positions until account equity exceeds these margin level requirements.

Example:

  • You signed up and deposited $600.
  • Balance = $600 (Deposits – Withdraws + closed positions P&L).
  • Available Balance: $600 (Balance + – Initial Margins).
  • P&L = $0 (profits and losses of all open positions + daily premiums).
  • Equity: $600 (Balance + open positions P&L).
  • You buy 10 CFD's of Google shares at $540.00
  • The total amount bought is: 10 * $540.00 = $5400
  • Initial Margin needed for 10 Shares of Google is 10% = $540
  • Maintenance margin needed to maintain 10 Shares of Google is 5% = $270
  • You will get a margin call If equity falls below $270. 10Pips will liquidate your open positions.
  • Balance = $600.
  • Available Balance = $60 ($600 – 10% * $5400 = $60).
  • P&L = $0.
  • Equity: $600 ($600 + $0).
  • Google Falls to $520.
  • Balance: $600.
  • P&L = -$200 (10 * $520 – 10 * $540).
  • Available Balance = $0 ($600 – 10% * $5400 – 10 * ($520 – $540) = – $140).
  • Equity = $400 (-$200 + $600).
  • Google Falls to $490.
  • You will get a margin call; 10Pips will liquidate your Google position
  • Balance = $600.
  • Available Balance = $0 ($600 – 10% * $5400 – 10 * ($490 – $540)= -$460).
  • P&L = -$500 (10 * $490 – 10 * $540).
  • Equity = $100 (- $500 + $600).
  • Margin Call Your Equity = $100, and to maintain an open position on 10 Google Shares you need $270. Therefore 10Pips will liquidate the position.
  • Balance = $100 (Balance changes when closing a position or withdrawing funds).
  • Available Balance = $100 (Deposits – Withdraws + P&L of closed positions).
  • P&L = $0 (no open positions).
  • Equity = $100 (Balance + P&L of open positions).

Initial Margin

Available account equity must exceed initial margin level requirement in order to open a new position. These requirements are specific to each financial instrument. Press 'details' in the row of the instrument in the opening screen to see the 'Initial Margin Level' for a specific instrument.

Maintenance Margin

Available account equity must exceed maintenance margin level in order to keep a new position open. These requirements are specific to each financial instrument. Press 'details' in the row of the instrument in the opening screen to see the 'Maintenance Margin Level' for a specific instrument.

Buy / Sell at Market

The order will be executed only at the price or within price ranges specified by the trader. Set the range (in pips) from the current rate using the number to the left of "Market Range".

The order may be filled partly, and then the part of the order that cannot be filled will be cancelled.

Stop Limit

To protect your profits, you can use a stop limit order. The stop limit order at 10Pips is used to sell an Instrument if the Instrument gets to a certain price.

Stop Loss

To protect from a loss, you can use a stop loss order. The stop loss order at 10Pips is used to sell an Instrument if the Instrument falls to a certain price. The stop loss order becomes a market order when the instrument reaches this price. A market order instructs 10Pips to immediately sell at the best possible price. You may not get the price you wanted in a volatile market, but it should be close.

Protect Your Profits

There are four ways to enter a stop loss order:

  1. Enter a trading price – for example if your stock is selling at $50 per share, you might enter a stop loss order for $48. When the stock price drops to $48, it will trigger the Stop Loss order.
  2. Enter a max loss amount – 10Pips will determine the relevant Stop Loss price
  3. Enter distance in pips from current price – 10Pips will determine the relevant Stop Loss price.
  4. Enter a percentage from the current price – 10Pips will determine the relevant Stop Loss price

Trailing Stop

This feature allows traders to place a stop loss order which updates automatically to lock in profit as the market moves in the trader’s favor. Click the "advanced" button in the “Create Market Order to add a "Trailing stop".

There are four ways to enter a stop loss order:

  1. Enter a trailing stop order – for example if your stock is selling at $50 per share, you might enter a trailing stop loss order for $48.
  2. Enter a max loss amount – 10Pips will determine the relevant Trailing Stop.
  3. Enter distance in Pips from current price – 10Pips will determine the relevant Stop Loss price.
  4. Enter a percentage from current price – 10Pips will determine the relevant Stop Loss price.

Entry Orders

These orders are executed when the market price reaches the client’s specified price and open a new position once the price reaches a certain level. The specified price could be below or above the current trading price.

  • Entry Limit Buy: filled when the price goes lower than the current price.
  • Entry Stop Buy: filled when the price goes higher than the current price.
  • Entry Limit Sell: filled when the price goes higher than the current price.
  • Entry Stop Sell: filled when the price goes lower than the current price.

To enter a new entry order:

  • Click buy or sell on the opening screen
  • Click advanced settings
  • Fill the relevant entry order

Balance = Deposits – Withdraws + P&L of close positions.

Available Balance = Balance + P&L of open positions – Initial Margins

P&L: The profits and losses for all open positions (Profit + Loss + Daily premium * Days)

Equity: The current account value = Balance + ∑P&L

Example:

  • You signed up and deposited $1000.
  • Balance = $1000. (Deposits – Withdraws + closed positions P&L)
  • P&L = $0. (Total profit and loss of all open positions, including daily premiums)
  • Available Balance = $1000.(Balance + open positions P&L – Initial Margins)
  • Equity = $1000. (Balance + open positions P&L)
  • 14:00 – You buy 100 Oil Barrels at market price $50.00 with a Stop Limit call when 'Oil' reaches $66.
  • Total amount bought = 100 * $60.00 = $5000
  • Initial Margin in this example = 10% = $500
  • Maintenance margin in this example that = 5% = $300
  • If the equity will fall below $250 you will get a margin call.
  • Balance = $1000.
  • P&L = 0. (The spread of oil is usually 5cents so you would have a P&L of -$5)
  • Available Balance = after you bought oil is: $400. ($1000 – 10%*$6000 = $500).
  • Equity = $1000. ($1000 + $0)
  • 14:05 – Oil Jumps to $64.
  • Balance = $1000.
  • P&L = $400. (100*$64 – 100*$60)
  • Available Balance = $800. ($1000 – 10%*$6000 +$400= $800).
  • Equity = $1400. ($1000 + $400)
  • 14:10 – Oil Jumps to $66 – before take-profit order executes.
  • Balance = $1000.
  • P&L = $600. (100*$66 – 100*$60)
  • Available Balance = $1000. ($1000 – 10%*$6000 +$600= $1000).
  • Equity = $1600. ($1000 + $600)
  • 14:15 – Your take profit order executes
  • Balance = $1600.
  • P&L = 0 (no open positions)
  • Available Balance = $1600.
  • Equity = $1600.

10pips Trading Instruments

Shares / Stocks / Equity CFDs – Nokia, Google, BMW…

10Pips gives you a chance to trade in CFDs over world’s most actively traded shares. The CFD value of one 10Pips share equals the quoted price in cents.

Example – if Microsoft CFD is trading at $490, then the value of one Microsoft CFD is $490. You can gain 20 times leveraged exposure to the traded shares by purchasing CFDs for as little as the equivalent of 5% initial margin.

Index CFD Trading – FTSE100, S&P500, DAX30…

Trade some of the world's leading equity indices. The CFD value of one Index CFD equals the price quoted in the currency of the index (the “home market” of the index).

Example – if DIJA (Dow Jones Industrial Average) CFD is trading at 13,805.56, the value of one DIJA CFD is $13,805.56. You can gain 20 times leveraged exposure to these leading equity indices for as little as the equivalent of 5% initial margin.

Forex CFD Trading – EUR/USD, USD/JPY, EUR/GBP …

Trade some of the world's most actively traded Forex pairs. The CFD value of one Forex CFD equals 100 times the price quoted in the currency of the second coin in the pair.

Example – if the AUD/USD CFD is trading at 0.9450, the value of one AUD/USD CFD is $94.50 or AUD100. You can gain 20 times leveraged exposure to the most actively traded Forex pairs For as little as the equivalent of 5% initial margin.

Commodity CFD Trading – Crude Oil, Gold, Silver…

Trade some of the world's key commodities. The CFD value of one Commodity CFD equals the price quoted in the currency of the commodity.

Example – if the Gold CFD is trading at 786.40, the value of one Gold CFD is USD 786.40 (- or the equivalent of one troy ounce of gold). You can gain 20 times leveraged exposure to these key commodities for as little as the equivalent of 5% initial margin.

Introduction to CFD trading

CFD (contract for difference) is a trading tool which allows the trader to have the benefits of owning a trading instrument (such as Forex, stocks or indices) without the need of buying the instrument itself; this allows a bigger impact on smaller trades.

For example, if you want to have the impact of 1000 ABCD shares, you don’t have to actually own them. By purchasing 10 CFDs of ABCD on 10Pips trading platform you will get the same impact as you get on owning 1000 shares. So, if there is a 5$ rise on the ABCD cost, you will earn 5000$ as if you purchased the actual shares.

There is a major difference between buying CFDs and buying the actual shares. When buying CFDs there are no exchange fees and most of the inefficiencies of buying shares are avoided. Another major benefit is the fact that CFDs can be traded on margin; a trader can trade a full portfolio of Shares, Indices, Commodities or Currencies without tying up a large amount of capital. Using the above example, if a trader purchases $50k worth of CFDs, he will only be asked for $1000 margin.

Over the past few years, CFDs have grown in popularity dramatically and we believe that this will be the preferred way to trade the financial markets in the future. 10Pips offers CFDs with zero commissions and attractive margin requirements.

10Pips revenue is from the difference between buying and selling spreads. There are no commissions for selling or buying or any hidden fees.

Night Premium

Day trader who doesn’t hold open positions during the night (later than 17:00 New York time) will not be affected by night premium.

If a trader holds open positions through 17:00 New York time, he is technically holding them through the night, and a night premium will be added or subtracted from his account.

To check the night premium for an instrument, press details next to the instrument name on the opening screen.

(Example – the night premium on a given day can be $2.46 per lot for GBP/USD and $7.06 per lot for EUR/USD)

Note – weekend period:

As a result of rolling over a position, the amount added or subtracted to an account for positions that are open on Fridays and held overnight, tends to be around three times the usual amount. This "3-Day" is the weekend period.

Funds management – Deposits and Withdraws

Funding your 10Pips account is simple and secure with the following methods accepted:

MasterCard/Visa secured funding:

MasterCard/Visa – you can use any credit card with MasterCard or Visa logo on it. The MasterCard/Visa purchases are fully integrated via 10Pips cashier screen.

  • Click "Cashier" on the opening screen
  • Choose MasterCard / Visa
  • Choose the amount you want to deposit and enter Credit card details
  • Press submit – A confirmation will appear in a few seconds and the amount will be added to your balance

PayPal secured funding:

  • Click "Cashier" on the opening screen
  • Choose PayPal.
  • Choose the amount you want to deposit and enter your PayPal Email address
  • A new browser window will popup
  • Confirm the transfer in PayPal website

Wire Transfer funding:

  • Click "Cashier" on the opening screen
  • Choose "Wirel"
  • Click "send me wire details"
  • An Email with details and specific instructions will be sent to your Email address.