The Easy Markets Deal Cancellation review found the following five key strengths:
- It provides the ability to undo a losing trade within 60 minutes
- If your stop-loss is reached within the period the trade is automatically undone
- It can be applied to selected currencies, gold, silver and even oil trading
- It works well with Easy Markets 400:1 leverage as a ‘safety-net’
- Traders don’t need to use the feature on all trades
The same Easy Markets Deal Cancellation review found the following key weaknesses:
- It is not available for traders using the MetaTrader 4 Platform
- Only a limited number of currency pairings offer Deal Cancellation
- You can’t add the feature to any open trade
- It leads to additional trading costs set by market volatility
- It doesn’t apply to Expert Advisors (EAs) – Automatic Trading
The full feature review is discussed below but overall, for beginner traders or those looking to reduce their risk profile when forex trading, Deal Cancellation has real benefits. The feature though has no benefits for traders who want wish to use MetaTrader 4 or expert advisors (EAs) which Deal Cancellation isn’t compatible with. So understanding if your happy to use Easy Markets platform and are likely to trade the most popular pairing conventionally and this feature should lead you to choose Easy Markets as your preferred forex broker.
What Is Deal Cancellation?
Deal Cancellation (which Easy Markets words DealCancellation) allows forex traders to undo a trade within 60 minutes of placing an order. This means that if a trade is moving in the wrong direction leading to a loss, the trader can undo the trade avoiding the loss.
The feature can’t be subsequently enabled after a trade is made. The 60 minute countdown will only occur if the feature is selected when a buy or sell order based on a non-confirmed price level enter the market is triggered. At that time, the countdown clock will begin to tick.
The feature was developed by ORE which is Easy Markets platform provider. This means that the feature only works on the easyMarkets platform, not the MetaTrader 4 platform that the forex broker also offers.
The Markets Available With Deal Cancellation
Easy Markets Deal Cancellation is primarily designed for currency markets.
Additional markets though are available for day trading in gold, silver and oil. The trade must have the Easy Markets deal cancellation icon displayed on the trading ticket if the feature can be applied to the deal.
Key factors that may decide is deal cancellation is available include recent market volatility and popularity of the trade. This means exotic currencies will rarely be available using this feature.
Fees Associated With The Feature
Fees are not fixed for this features and is based on 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.
Required Trade Sizes
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. Our easy markets deal cancellation review wants to point out that 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 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 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 labelled “Cancel Deal” must be clicked in order to have the money lost returned to the trader’s trading account. Our Easy Markets deal cancellation review found 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 Easy Markets Deal Cancellation review wants to point out this 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.