FAQ

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Trading with MPT Max

Why Trade Spot Forex?

There are a number of reasons to trade spot forex. It represents a unique investment and speculative opportunity. And this is important - the spot forex market removes the traditional barriers that exist in other markets. This business is open day and night, which means that you can make a trade at absolutely the right time without having to wait for the shop to open its doors.

When is the Market Open?

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Since spot forex is traded worldwide, the market operates 24 hours a day from Sunday night to Friday night anywhere in the world. This means that a spot forex trader can basically choose his or her own hours to trade.

Why do you have a 5-pip spread?

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For two reasons; first of all because we do not move the spot forex rate against you when you have placed a trade, like most other companies do, we call that cheating. You will in fact end up paying a far higher spread that way. Secondly, it is from the spread that we pay out commission and as an Ambassador this is how you can make more money.

See also ‘Will I make money in my sleep?’

Why is there sometimes a difference
in the spot forex rate between MPT Max and others?

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There are a number of reasons to trade spot forex. It represents a unique investment and speculative opportunity. And this is important - the spot forex market removes the traditional barriers that exist in other markets. This business is open day and night, which means that you can make a trade at absolutely the right time without having to wait for the shop to open its doors.

Other brokers or feed providers may have other ways of presenting a rate, which is why you will sometimes see a difference of a few pips between brokers.

What is the Overnight Fee?

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All positions kept overnight are subject to a maintenance fee equal to one Pip Value on open trades. This fee is added to applicable trades at 22:00 UTC (GMT). If you don’t have any open trades at this time, there is no fee.

The Overnight Fee reflects our costs in keeping trades open overnight on the international Interbank Market.

When applicable, the overnight fee shows in the Prm (Premium) column in the WebTrader.

What is a Swap?

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During the hours when the spot forex market is closed each weekend, all open trades will be closed and reopened as new trades. This means that all open Profit or Loss will be transferred from ‘Open Profit’ to your 'Balance' once a week, during the weekend.

This means that the new open trades will not have any open profit or loss at the time the market opens on Sunday evenings.

It is important to know that this operation does not change the amount of money you actually have on your account, i.e. the 'Equity'.

If the trades closed by the automatic swap process, resulted in a profit or a loss, you have not made any actual profit or loss. The "equity" is the same as no money has been added to or deducted from your account during this process.

The new trades opened by the system during the swap each weekend are therefore simply a continuation of the trades you left open when the market closed on Friday evening. Likewise, any movement after the market reopens on Sunday evening will therefore be shown as normal profit or loss on these trades.

In the spot forex industry this is normally done as often as every day, and is called a "Rollover". At MPT Max, we do perform this operation to balance our accounts at the end of each week.

Lastly, the trades closed due to a swap do not count as 'normal trades' (with regard to a requirement for a minimum number of closed trades to avoid the Autoship fee), nor is any commission paid out on these swap trades until you close them yourself.

What is the ‘High Risk Reward’?

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In spot forex trading it is possible to earn a lot of money in a matter of minutes or hours. But beware; there is also a risk of losing. When you are able to understand how to manage the high risk that is involved in spot forex trading, the reward is an enormous profit potential. It is not uncommon to double an investment in a single week when experience is put to work the right way.

Trading spot forex involves risk, and you should only trade with money you can afford to put at risk. Your risk is strictly limited to how much you have in your account. Before investing in spot forex trading you should carefully consider your investment objectives, level of experience, and risk appetite.
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