Trading conditions¶
Many of the conditions you experience while using cTrader are influenced by your broker, and each broker may apply different settings. This section helps you understand trading conditions in more detail and the factors that influence them.
Stop out¶
Think of a stop out as a specific margin level (expressed as a percentage) at which your broker will begin automatically closing your open positions. Stop outs (smart or fair) are triggered when the margin level of your account falls to or below the designated stop-out level. This level is determined solely by your broker. cTrader supports two stop out types (smart and fair).
You can view your account margin levels and stop-out levels in the balance bar of Trade Watch.
Fair stop out¶
When your account margin level falls below the designated stop out level, a fair stop out automatically closes the position that uses the largest amount of margin. This position is closed in full. Any unrealised P&L generated by a position does not affect whether it is closed when a stop out is triggered.
Example
To illustrate how fair stop outs work, consider a case where a trader opens 3 positions in 3 different symbols.
- The trader's account deposit currency is USD.
- The trader's initial account equity is 1,500 USD.
- The stop-out level of the account is 30%.
- At the start of trading, the EURUSD, GBPUSD and CADCHF exchange rates are 1.0085, 1.1594 and 0.7466, respectively.
These are the 3 positions opened by the trader.
| Initial account equity | 1,500 USD | ||
|---|---|---|---|
| Stop-out level | 30% | ||
| Position 1 | Position 2 | Position 3 | |
| Symbol | EURUSD | GBPJPY | CADCHF |
| Open volume | 100,000 units | 150,000 units | 150,000 units |
| Leverage | 1:500 | 1:300 | 1:200 |
| Used margin | 201.7 | 579.8 | 559.95 |
| Total used margin | 201.7 + 579.8 + 559.95 = 1,341.45 | ||
| Equity required to avoid a stop out | (1,341.45 * 0.3) = 402.44 USD | ||
| Account margin level | (1,500 / 1,341.45) * 100% = 111.82% | ||
Following market movement, the 3 positions generate the following unrealised P&L.
| Net unrealised P&L | |
|---|---|
| Position 1 | -200 USD |
| Position 2 | +200.17 USD |
| Position 3 | -1117.04 USD |
The following events then occur.
| Account equity | 1,500 - 200 (position 1) + 200.17 (position 2) - 1117.04 (position 3) = 383.13 USD |
| Account margin level | (383.13 / 1,341.45) * 100% = 28% < 30% (stop out level). Fair stop out triggered. |
| Fair stop out | Position 2 is closed wholly as it has the largest used margin (579.8). |
The trader ends up facing the following conditions.
| Account equity | 383.13 USD | ||
| Position 1 | Position 3 | ||
| Symbol | EURUSD | CADCHF | |
| Open volume | 100,000 units | 150,000 units | |
| Leverage | 1:500 | 1:200 | |
| Used margin | 201.7 | 559.95 | |
| Unrealised P&L | -200 USD | -1117.04 USD | |
| Total used margin | 201.7 + 559.95 = 761.65 | ||
| Account margin level | (383.13 / 761.65) * 100% = 50% | ||
| Equity required to avoid a stop out | 761.65 * 0.3 = 228.50 USD | ||
| The next fair stop out will partially close position 3 as it now has the largest used margin. | |||
Smart stop out¶
Smart stop outs are triggered when your account margin level falls below the stop-out level specified by your broker. However, smart stop outs prioritise closing positions that use the largest amount of margin, rather than those generating the lowest unrealised P&L.
Unlike fair stop outs, smart stop outs do not close positions entirely. Instead, the selected position is closed partially – just enough to restore the account margin level above the stop-out threshold. The smallest possible portion is closed and rounded up to the minimum volume step of the symbol associated with the position.
Example
To illustrate how smart stop outs work, here is an example where a trader opened 3 different positions.
- The trader's account deposit currency is USD.
- The trader's initial account equity is 1,500 USD.
- The stop-out level of the account is 30%.
- At the start of trading, the EURUSD, GBPUSD and CADCHF exchange rates are equal to 1.0085, 1.1594 and 0.7466, respectively.
These are the 3 positions opened by the trader.
| Initial account equity | 1,500 USD | ||
|---|---|---|---|
| Stop-out level | 30% | ||
| Position 1 | Position 2 | Position 3 | |
| Symbol | EURUSD | GBPJPY | CADCHF |
| Open volume | 100,000 units | 150,000 units | 150,000 units |
| Leverage | 1:500 | 1:300 | 1:200 |
| Used margin | 201.7 | 579.8 | 559.95 |
| Total used margin | 201.7 + 579.8 + 559.95 = 1,341.45 | ||
| Equity required to avoid a stop out | (1,341.45 * 0.3) = 402.44 USD | ||
| Account margin level | (1,500 / 1,341.45) * 100% = 111.82% | ||
The market moves, resulting in the following net unrealised P&L for positions 1–3. These values are identical to those in the fair stop outs example.
| Net unrealised P&L | |
|---|---|
| Position 1 | -200 USD |
| Position 2 | +200.17 USD |
| Position 3 | -1117.04 USD |
The following conditions now take effect.
| Account equity | 1,500 - 200 (position 1) + 200.17 (position 2) - 1117.04 (position 3) = 383.13 USD |
| Account margin level | (383.13 / 1,341.45) * 100% = 28% < 30% (stop out level). Smart stop out triggered. |
| Smart stop out | Position 2 is closed partially as it has the largest used margin (579.8). The minimum volume step for GBPJPY is 1,000 units. Position 2 is closed partially by 28,000 units to free 108.23 in used margin. This is calculated as follows: (28,000 / 150,000) * 579.8 = 108.23. Position 2 now takes 471.57 in used margin. |
This is the final state of the trader's account and their 3 positions.
| Account equity | 383.13 USD | ||
| Position 1 | Position 2 | Position 3 | |
| Symbol | EURUSD | GBPJPY | CADCHF |
| Open volume | 100,000 units | 122,000 units | 150,000 units |
| Leverage | 1:500 | 1:300 | 1:200 |
| Used margin | 201.7 | 471.57 | 559.95 |
| Unrealised P&L | -200 USD | + 169.59 USD | -1117.04 USD |
| Total used margin | 201.7 + 471.57 + 559.95 = 1,233.22 | ||
| Account margin level | (383.13 / 1,233.22) * 100% = 31% | ||
| Equity required to avoid a stop out | (1,233.22 * 0.3) = 369.97 USD | ||
| The next smart stop out will partially close position 3 as it now has the largest used margin. | |||
Leverage¶
cTrader supports leverage of up to 1:1000 for all symbols and accounts. However, the maximum leverage available to you is determined by your broker. Brokers typically offer a range of leverage options, allowing you to choose a lower rate if preferred. Different markets are often provided with different maximum leverage rates.
Note
Check the information for each market to confirm the exact leverage available. Do not assume all markets offer the same leverage as your account.
Credit¶
Credit is an amount of money that traders can use for trading even without their own funds in cTrader. Like a real deposit, credit can be lost through unsuccessful trading. If your account includes both balance and credit, the balance is used first, followed by the credit. The displayed balance includes any credit, but if the credit amount is zero, it will not appear in the cTrader interface.
Credit is deposited and withdrawn by your broker, and you will receive a notification email each time. While you cannot withdraw credit itself, you can withdraw any profits earned using it.
Example
If you receive a credit of 100 USD and deposit 40 USD of your own funds, your balance will total 140 USD. As long as there is no unrealised net P&L, your equity will also be shown as 140 USD. If no margin is being used, your free margin will also be 140 USD.
cTrader displays your credit at the bottom of Trade Watch.
Commissions¶
Commissions in cTrader are charged based on the volume of the deal. Your broker determines whether commissions apply, how much is charged and the method of calculation (USD volume, lots or basis points).
Note
If commissions are charged in a currency different from your account currency, they will be converted into your account currency.
Swaps¶
Swap rates are applied by your broker. When you hold a position overnight, your broker also incurs fees from their liquidity provider, and the fees you are charged reflect these costs.
For more information about your broker’s swap rates, it is recommended that you contact them directly.
Latency¶
While cTrader can process orders within milliseconds, this does not guarantee your orders will be filled in that time. Latency is influenced by your broker’s liquidity provider, particularly if the counterparty filling your order is located far from the broker’s cServer (for example, if the liquidity provider is in New York, the cServer is in London, and you are in Auckland).
Brokers may configure proxies differently using the cTrader proxy cloud, selecting from dozens of key locations worldwide. While proxies help improve latency and connection quality, the main factors affecting latency are your location and internet speed.
Slippage¶
cTrader fills orders using the volume-weighted average price (VWAP), meaning your order may not be executed at the top-of-book price shown on the charts, as execution depends on order volume.
Slippage is a genuine and expected aspect of trading in a true STP environment, particularly when using market orders. It is generally unavoidable and not something your broker can control, as it results from market conditions such as high volatility or rapid price movements.
To avoid the likelihood of slippage, use market range orders or limit orders.
Trading sessions¶
Trading sessions can vary between brokers depending on their location, local public holidays or the trading hours of their liquidity providers. These differences may affect when the trading day or week begins and ends, as well as any gaps between sessions.