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Trading Conditions

Most traders at some point will find themselves in a discussion with their broker unhappy about the outcome of a particular trade. The unhappiness usually will stem from a misunderstanding of the terms of the trade, or the conditions surrounding them. In order to avoid these disputes or be in a position to use them to your benefit, it’s key to understand the various trading conditions set by brokers and the wider marketplace.

What Are Trading Conditions?

Trading conditions are intended to act as specifications and in some cases parameters. Each broker depending on type will offer a set of conditions that a trader must follow or at least understand to avoid conflict. Trading conditions help create a structured environment for brokers to be able to manage all traders and trades accordingly. For traders, this is used to understand what can and cannot be done. Some strategies like scalping aren’t allowed by some brokers, so a trader would need to be aware of this condition beforehand deciding which broker to trade with. 

We have created a list of the main trading conditions and brokers who offer each.  

Examples of how trading conditions will affect me?

Stop-Loss (guaranteed) :

Usually provided by some market makers a guaranteed stop loss helps ensure that regardless of huge swings in the market your position will be closed at your requested level.

Read more about Margin Call vs Stop Out Level here!

Scalping :

These are very short term and fast-moving trades where you may be able to profit from swift moves in a market. If restricted by a broker, you may not be able to use such strategies.  

CFDs:

CFDs allow you to speculate the price movements without owning the underlying market and comes with high leverage meaning you need less capital to be apart of the market. If a broker doesn’t offer CFDs you will likely need larger sums of capital to be able to trade.

News Trading: 

In volatile markets, some brokers are better than others in providing fast execution speeds and low spreads. Mainly markets makers, these brokers give traders the ability to capitalize on trading the news. Opportunities they may otherwise miss if the broker doesn’t execute their trades in time. 


If you are looking for your broker to tick several pieces of criteria, then see our other lists of broker categories and how we rank certain brokers:

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