Hi Traders,
another week has passed, which means it’s time to talk about the recent FTMO events and inform you in advance about the future updates. Without further ado, let’s get straight to today’s topics.
Important news for all traders who like to trade also less popular indices: due to the Summer bank holiday in the United Kingdom, UK100.cash will close early today (Friday 27th August 2021) at 23:00.
The instrument will remain closed throughout the whole Monday (30th August 2021) and reopens on Tuesday, 31st August 2021, at 3:00 platform time (GMT+3).
I would also like to remind everyone about the recent actions performed on all CHF assets. On the 23rd of August, the leverage on all CHF pairs was reduced to 1:33 (margin percentage requirement has been increased to 3%) for normal account types and 1:10 for Swing account types. For more details, kindly refer to my previous post above.
There is no scheduled weekend platform maintenance break for the upcoming weekend, so those of you who trade crypto can take advantage of the weekend-open market.
That’s it for the updates, we actually had a really smooth week, you may notice that our email responses are truly swift.
Speaking of responses, there are a few comments I would like to react to and answer your questions. As usual, please see my responses below…
Hi QAndy, although I understand that you’re rather seeking another trader to give you an answer, I would like to point out that you can use the Free Trial account to experience the conditions during high-impact market events. The Datafeed streamed on our Free Trial accounts is currently exactly the same as on the FTMO Challenges/ FTMO Accounts. Of course that the reduced liquidity that occurs during news releases may cause certain slippage, whether positive or negative.
Generally, we’re aspiring to provide our traders with the best trading conditions on the market. But instead of taking my word for it, testing the condition yourself on the Free Trial account will give you the full picture.
Hello Jazed, I’m glad you’re asking, fully understanding the Trading Objectives is an absolute must before you start trading with us.
Let’s take the $100,000 normal risk FTMO Account (whether it would be a normal account type or Swing account type, the Trading Objectives are the same for both of them) for instance.
When it comes to Max Daily Loss, the trader must not lose more than $5,000 in one day counted from the midnight (CE(S)T) balance.
If your balance at midnight would be $99,000, then your equity must not drop below $94,000 on the following day. That ensures that the trader does not lose more than 5% of the initial balance in one day.
On the other hand, let’s see what could happen if we would not use the midnight balance, but rather the midnight equity in this rule.
Imagine the following scenario: you did well and brought your $200,000 FTMO Account to a balance of $220,000. Later on, you would open another trade and its floating loss would increase by -$9,000 every day. Assuming you would not open any other trades, you could close the trade 4 days later with a -$36,000 loss.
Your balance would drop from $220,000 to $184,000 in one day and the Max Daily Loss rule would remain unexceeded.
From the investor’s point of view, we naturally want to prevent such sudden drops and we also want to prevent our traders from overtrading.
And therefore according to this rule, one must not lose more than 5% of the account size (normal risk setup) in one day from their midnight balance.
I hope you can understand our position a little better. Feel free to drop a comment if there would be something you would like to discuss
Alright, and we've finished another week. I hope my responses brought some clarification to your questions and as mentioned above, I'll gladly respond to any relevant question posted.
Thank you for your attention everybody, and don't forget to enjoy the weekend.
-Vitek
another week has passed, which means it’s time to talk about the recent FTMO events and inform you in advance about the future updates. Without further ado, let’s get straight to today’s topics.
Important news for all traders who like to trade also less popular indices: due to the Summer bank holiday in the United Kingdom, UK100.cash will close early today (Friday 27th August 2021) at 23:00.
The instrument will remain closed throughout the whole Monday (30th August 2021) and reopens on Tuesday, 31st August 2021, at 3:00 platform time (GMT+3).
I would also like to remind everyone about the recent actions performed on all CHF assets. On the 23rd of August, the leverage on all CHF pairs was reduced to 1:33 (margin percentage requirement has been increased to 3%) for normal account types and 1:10 for Swing account types. For more details, kindly refer to my previous post above.
There is no scheduled weekend platform maintenance break for the upcoming weekend, so those of you who trade crypto can take advantage of the weekend-open market.
That’s it for the updates, we actually had a really smooth week, you may notice that our email responses are truly swift.
Speaking of responses, there are a few comments I would like to react to and answer your questions. As usual, please see my responses below…
DislikedHello, I have a question to people who trade on the new Swing account of FTMO. Do they have a lagging server around high impact news, because now you can trade the news with the swing account (still 30:1 leverage which is ok) and you are trading on their own demo server ? Do they simulate slippage when executing on fast markets then or do they have such lightning fast quotes on their demo server that this is not required ? Or do you get the quote you see with no slippage regardless of order size too ? Is there a difference here using MT4 or cTrader...Ignored
Generally, we’re aspiring to provide our traders with the best trading conditions on the market. But instead of taking my word for it, testing the condition yourself on the Free Trial account will give you the full picture.
DislikedHi Vitek, Just a quick question regarding max daily loss on swing account, If I have positions opened overnight and they are on in loss does this impact the max daily loss? Support explained me this (TBH couple messages until I caught how it works) that to calculate what's the Max Daily Loss it does only take into consideration opened/closed transaction from certain day. In this case I had positions at -$4000 opened at the begining of the day, this means, according to support, The Max Daily Loss will be triggered as soon as those position reach...Ignored
Let’s take the $100,000 normal risk FTMO Account (whether it would be a normal account type or Swing account type, the Trading Objectives are the same for both of them) for instance.
When it comes to Max Daily Loss, the trader must not lose more than $5,000 in one day counted from the midnight (CE(S)T) balance.
If your balance at midnight would be $99,000, then your equity must not drop below $94,000 on the following day. That ensures that the trader does not lose more than 5% of the initial balance in one day.
On the other hand, let’s see what could happen if we would not use the midnight balance, but rather the midnight equity in this rule.
Imagine the following scenario: you did well and brought your $200,000 FTMO Account to a balance of $220,000. Later on, you would open another trade and its floating loss would increase by -$9,000 every day. Assuming you would not open any other trades, you could close the trade 4 days later with a -$36,000 loss.
Your balance would drop from $220,000 to $184,000 in one day and the Max Daily Loss rule would remain unexceeded.
From the investor’s point of view, we naturally want to prevent such sudden drops and we also want to prevent our traders from overtrading.
And therefore according to this rule, one must not lose more than 5% of the account size (normal risk setup) in one day from their midnight balance.
I hope you can understand our position a little better. Feel free to drop a comment if there would be something you would like to discuss
Alright, and we've finished another week. I hope my responses brought some clarification to your questions and as mentioned above, I'll gladly respond to any relevant question posted.
Thank you for your attention everybody, and don't forget to enjoy the weekend.
-Vitek
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