Easy Markets Deal Cancellation
No legitimate source of Forex information, no honest and reliable Forex broker, or any expert tasked with helping all levels of Forex traders gain the necessary expertise to trade the Foreign Exchange currency markets successfully, will deny the reality that speculating on the value of one currency compared to another is risky.
The most successful currency traders in the world will admit to making poor and costly trading decisions as beginners. They will acknowledge that after they found profitable trading strategies as they advanced to the intermediate skill level, the currency market never lost its ability to prove unpredictable and therefore costly to those traders’ accounts.
Even when they achieved a level of expertise that permitted them to be consistently successful and make considerable profits, they still had a certain percentage of their trades that lost money, sometimes from simply making a human error, such as selecting the “sell” command on their trading platform when their intention had been to choose the “buy” command.
The pure reality of Forex trading is that the Forex market does not care how carefully it is analysed, how many times it has acted in a certain way, or how conservatively a trade was set up. Without this uncertainty regarding the future value of one currency compared to another, the Foreign Exchange currency market would cease to exist. The real financial and psychological risks of Forex and other types of trading often represent major obstacles, especially for new traders, which is why a new feature of Forex broker Easy Markets called easyMarkets deal cancellation is extremely appealing.
What does Easy Markets Deal Cancellation mean?
Easy Markets has made it possible for traders to cancel a trade that is losing money. Incredible as it sounds, it is true! With easyMarkets deal cancellation, any margin funds at risk from a losing deal will be returned to the trader’s account.
Is Easy Markets Deal Cancellation feature available for Forex markets only?
Not at all. Easy Markets Deal Cancellation is applicable to other financial instruments offered by the brokerage. Day trading in gold, silver and oil are all eligible for easyMarkets deal cancellation. Any transaction where the easyMarkets deal cancellation icon is displayed on the trading ticket can have the feature applied to the trade.
Does Easy Markets charge anything for the feature?
Yes. There is a fee based on the market volatility level in effect at recent times around the trade involved. This fee is variable and is clearly shown when the command to “close” a trade is chosen. From there, it is a simple matter of comparing the fee to the potential loss from the losing trade. If the fee is higher than the loss, traders can let the trade continue if they choose.
Is there a time limit on the feature?
Yes. The time limit to use the easyMarkets deal cancellation option is 60 minutes. The nice aspect of this is that the trading ticket displayed by the Easy Markets trading platform shows a countdown timer with the number of minutes remaining until the easyMarkets deal cancellation option expires, so it is not necessary for the trader to manually time the trade.
Can the feature be enabled subsequently to entering the market?
As appealing as that idea sounds, the feature must be enabled at the time the trade is established. In the case of a buy or sell order based on a non-confirmed price level, the feature is enabled as soon as the order to enter the market is triggered. At that time, the countdown clock will begin to tick.
Is there any fee associated for trades that are closed for a profit that had the easyMarkets deal cancellation feature invoked?
No. That would defeat the purpose. The feature is a safety measure in addition to any stop loss orders that are put in place to limit the total exposure of the trade. Profitable traders make more trades, so it would be counterproductive to charge them anything beyond the normal brokerage spread fees applied to every trade.
Is there any minimum trade size in order to qualify for the feature?
No. There are minimum trade sizes for trading with Easy Markets, but they are independent and apply to trades regardless of whether or not the trade cancellation feature is enabled. The key things for traders to determine in using the deal cancellation feature is to analyse market volatility at the time of the trade and understand what is the typical price movement over the course of an hour for the instrument being traded, and then structure the trade size accordingly. Of course, account size must be considered first with regard to a traders’ acceptable level of risk. Simple math is all that is required for this purpose.
Is it the same process to close a trade that it is to use easyMarkets deal cancellation?
No. While using the feature will require a trader to select the close deal function to see the trading ticket, a large blue button labeled “Cancel Deal” must be clicked in order to have the money lost returned to the trader’s trading account. This is a nice option, in that if the fee for cancelling a losing trade is higher than the amount of the loss on the trade, the trader can simply close the trade as he or she would do with any broker. Having this option is worthwhile and should be thoroughly understood.
All traders, new and experienced alike, know the nervous physical sensation that precedes every trade. Even those who have traded extensively over the long term feel this sensation. It is actually a valuable genetic survival trait. Those with many trades behind them do not experience this primal fear as intensely, but it never really goes away entirely. Having the safety net feature of easyMarkets deal cancellation has two primary benefits, but it is not meant to encourage reckless disregard for the risk of speculative trading of financial instruments of any kind.
The feature not only helps traders to minimise the inherent intimidation factor of the markets, which is the primary benefit, but it also, by reassuring the trader that trading is not life-threatening, assists in invoking an atmosphere where trading decisions are made from a less emotional, more objective perspective.