Main Client Screen Dealing Software User Guide Version 4.1 1 2 3 4 5 6 7 8 The main client screen of the dealing software is intuitive and ergonomic. All trading functions can be performed from the main screen, including executing a trade, leaving an order, position and order management, and margin analysis. Main Screen - Quick Key 1. Dealing Boxes: one per currency pair; view real time bid/ask rates; click on the BUY or SELL to instantaneously execute a trade 2. Currency Checkbox: select the dealing boxes you wish to view 3. Rate Comparison: quick snapshot of current bid/ask, today s high/low, etc. by currency pair 4. Position Management: real time, summary view of all open positions 5. Margin Analysis: real time information about margin, P&L and account balances 6. Activity Log: lists each action completed or attempted in your account 7. Order Management: enter orders and view all open orders; 8. Deal Blotter: pertinent details on all trades entered into the system System requirements: We strongly recommend the use of Internet Explorer 5.0 or higher with the dealing software. For best viewing, expand the window to full screen by depressing the F11 function key on your keyboard or selecting View -> Full screen in the IE menu. 1
System Login/Logoff You must login to the dealing applet before each session. The applet automatically prompts you for a User ID and Password. User ID/Password: Enter your user ID and Password in the appropriate fields to log in to the dealing software. Please note that both are case sensitive. User Configurable Auto Logoff - The applet also features a user-configurable timeout feature. Click on the Auto Logoff drop down box and select your preference from 15 minutes to 3 hours. Auto Stop Loss Enabled - If Auto Stop Loss is enabled (checked), upon successful execution of a NEW position (meaning there was no existing position in the currency pair just traded), you will be automatically prompted to enter a stop loss order to cover a new position. Simply deselect this box to disable the auto prompt. Color Palette Choose your preference, Default (Blue) shown - or Classic (Grey). Note that you must log out of the dealing software if you wish to switch between color palettes. Important note: Do not attempt multiple logons to the dealing software. The software security will immediately lock out any user who has logged on more than once using the same login ID and password. If you are experiencing difficulty logging on to the software, please contact a client services associate immediately. When you wish to exit the system, you must logoff by clicking the disconnect button; otherwise you will remain logged into the server 2
Executing a Trade The ability to trade directly from real time, streaming quotes is the centerpiece of our service. The current bid/ask prices appear in the dealing boxes seen below, and clients can at any time click on the current bid or offer and instantaneously execute a trade. More importantly, the dealing desk publishes ONE price to the entire client base and allows any client to deal on that available price. By offering instantaneous execution from live, two-way prices, clients are always certain that the available prices are "at the market". Dealing from live quotes offers traders the advantage of anonymity and faster execution. Normal execution times are sub-one second, currently the fastest execution available from ANY online Forex platform. Current Bid/Ask Step 1: Enter number of lots to trade. Use the pull down list or type in the number of lots (1 lot = 100,000 of the first currency) you wish to trade. Click to SELL at the current Bid Click to BUY at the current Offer Step 2: Deal. Click Sell or Buy button to execute the trade. # of Lots to be traded Notional Amount of trade Step 3: Confirmation Once you execute the trade, the buy/sell buttons will then be replaced with a system response, typically within one second. A green box confirms the deal was executed, with a you bought, you sold statement confirming the precise details of the trade and a confirmation number. A red box will say deal not accepted followed by the reason. 3
Step 4: Enter Stop Loss Upon successful execution of a NEW position (meaning there was no existing position in the currency pair just traded), you will be automatically prompted to enter a stop loss order to cover the new position. Auto stop loss can be disabled in the logon window. The stop loss can be entered for the full amount of the preceding deal (default) or any lesser number of lots. You may enter in ANY rate other than the current spot rate. Position Management The position management window provides a summary view of all current positions. The information in this window is updated in real time, changing tick by tick as the market moves. Currency: The column lists all available currency pairs, even if you don't have an open position in that pair. Net: Lists the net total of all your positions in that currency pair. It represents the amount of the currency in which lots are traded. For example, if you were long 300,000 AUD at one rate and sold 500,000 AUD at a different rate, your Net total would be 200,000 AUD. Average Rate: The average rate of your open positions. Represents the rate at which you would have to close your position to end up flat. Reval Rate: The current rate at which you could close out your position. If you are long, the system uses the current bid rate (and vice versa) to determine your unrealized gain/loss and P&L. 4
P/L ($): The profit or loss in USD that you would realize if you closed your position now, at the rate currently available. ($) Value: The USD value of your position. If USD is the first currency in the pair, this value will be in lot denominations. If USD is the second currency of the pair or neither currency is USD, this amount will fluctuate as the quoted rate changes. The position management window is user configurable. To rearrange the column order, click and drag the header right or left until it shifts. To adjust the column width, hold the cursor over the cell dividing line to get a double arrow. Click and drag right or left to adjust width. Click on a column heading to sort the rows by that category. Margin Analysis The margin analysis window provides traders with real time information about their trading account, including: Account Balance: The sum of all deposits, interest income, and realized gains less all withdrawals, realized losses, and incidental fees. Account Balance equals posted margin + excess margin deposit. Realized Gain/Loss: The net (sum of all gains and losses) P&L on positions that have been closed out today. At the end of the business day, all realized Gains/Losses are posted to the client s account balance. Unrealized Gain/Loss: The net P&L of all open positions, calculated at the current rate. This amount changes as the rates fluctuate. Margin Balance: Represents Account Balance plus the sum total of current realized and unrealized gains/losses. Total Available Position: The total position, in US dollars, that your margin balance will allow you to put on. Does not reflect your current positions. Under normal market conditions, this is 50x your current margin balance. Open Position: The total USD value of all open positions. Max Deal Available: Total available position less the current gross position. This is the amount available for new trades. 5
Leaving an Order For a single order To place an order, complete the appropriate sections: Currency Pair: chose a currency pair from the drop down list Type: Single or One Cancels the Other (OCO) Expiry: Choose one of the following: For an OCO order, fill out both sections End of day (EOD): Order will expire at 17:00 ET at the end of the trading day you placed it Good Til Canceled (GTC): Order will remain active until you highlight it and click the cancel button. If you chose One Cancels Other (OCO) order type: the lower half of the form will be highlighted, allowing you to enter both sides of the order at the same time. Remember, if one side of your OCO is filled, the other is automatically canceled. Buy/Sell: select buy or sell from the drop down list Lots: Number of lots can either be entered manually (system only accepts numeric form) or selected from the pull down list. The field next to Lots, which has already changed to reflect the first currency of your pair, will now show the total amount of that currency. Order Basis: Choose either limit or stop loss. Order Rate: The rate at which the trade will be executed. You may enter in ANY rate other than the current spot rate. Fill this in manually. Confirm: When all the fields are completed and you have checked your order, click Place and your order will placed, and appear on your activity log. Abort: Choose Abort to return to the order management window, where your order will now appear. **If you click Abort before clicking Confirm, you will return to the order management window and no order will be placed. 6
Order Management The order management window is a summary view of all open orders. Orders within 10 pips of being executed are highlighted, allowing traders to easily track order status. Trade Ref # Currency Pair Order Type Buy/Sell Deal Amount Order Rate Current Price Difference b/w live price and order rate. Confirm Number Expiry Two trades with the same number indicates an OCO Sort Orders by Currency Pair Total # of Open Orders To place a new order To cancel an Open Order Ref: Each order is assigned a reference number. Both sides of a One Cancels Other (OCO) order will have the same number. Buy/Sell: Order type based on the first currency in the pair Ccy Pair: The currency pair of the trade Deal Amount: The first currency value of your order. Basis: Order type, i.e. Stop Loss, or Limit. Order Rate: The trigger rate at which you want the trade executed. Live Price: The current rate at which the trade could be executed Points Dif: The difference between the order rate and the live price. Conf: The order confirmation number generated by the system upon placement of your order. Expiry: The point at which the order becomes invalid, even if the market reaches your rate. Enter either End of Day (EOD) or Good Till Cancelled (GTC). Currencies: This pull-down menu allows you to sort the view to show orders by individual currency pair or all orders at once. Orders in listing: The number of orders posted in the category you have selected in the currency field. Not the overall total of orders, unless you are viewing all currency pairs at once. Particularly useful when not all orders appear on your screen at once. 7
New: Clicking New will take you to the order form to place a new order. Cancel Order: In the order status window, highlight the order you wish to cancel by clicking on it with your mouse, and then click Cancel. Charting Launching the charting tool Click on the Charting tab on the right side of the menu bar. Default is set to EUR/USD 5 min. data. Users may configure and deploy multiple charts and toggle between them as desired. Click here to launch charting tool 8
Using the Tool Bar Display Data Block Zoom View All Zoom Out Zoom In Draw Trend Line Delete Studies Bar Chart Change Background Candle Chart Line Chart Currency Pair Time Intervals Launch chart in a new window Configuring a Basic Chart You can easily view different chart types for the selected currency pair and interval by clicking on the chart type icons on the tool bar. The example shown below is a 1 hour USD/JPY chart. Available Currencies All currency pairs currently traded on the dealing platform are available for technical analysis. EUR/USD GBP/USD USD/JPY USD/CHF USD/CAD AUS/USD Available intervals Tick 5 min. 15 min. 1 hour 1 day 1 week. 9
Adding a Study 1. Click on the Studies button (see tool bar above), and a list of available studies appears. 2. Select the study you wish to use. In this example, the MACD study is selected 3. Click OK, and another dialog box will appear, in which you will add the appropriate study parameters. The default is set to the most commonly used parameters. 4. Click OK and the new study will appear stacked under the basic chart and any other existing studies. 10
Drawing Trend Lines In the example below, multiple Bollinger Bands have been added to the USD/JPY 1 hour bar chart. To add a trendline, click on the trendline icon in the tool bar. The cursor now appears as a crosshair, '+ ', in the active window only. Move the cursor to the desired starting point of the trend line. Click, hold, and drag the cursor to the desired ending point of the trend line. Release the mouse cursor. The window re-draws with the defined trend line displayed. The ' + ' cursor is still present to draw more trend lines. Deleting Chart Elements To delete a study or trendline, click the Delete button on the tool bar, and a Remove From Chart dialog box will appear. In it you will find listed all studies and trend lines. This will vary depending on the contents of the chart. Click on the item you want to remove and click OK. Repeat as necessary. 11
Display Data Function Display Data displays a list of the chart s numerical values according to the screen position of the mouse cursor. To engage Display Data, click on the Display Data icon on the tool bar. A small window will appear in the upper left corner of the screen, and a crosshatch will appear in the active chart window. Move the mouse and the values immediately change to match the new cursor position. In the example below, the Display Data box shows the field values of the current cursor position at the intersection of the crosshatch, as identified in the example below. If the cursor is on a study window, the study values also display. Move the cursor to different periods to see each desired period field values. To disengage Display Data, simply click once more on the Display Data icon. 12
Definitions of available studies: ATR - Average True Range. Shows how the current price compares to the average of the day s highs and lows of each time group. Bollinger Bands This combines a moving average with the instrument s volatility. The bands gauge whether prices are high or low on a relative basis. They are plotted two standard deviations above and below a simple moving average. They indicate a sell when above the moving average and a buy when below it. The bands are used in conjunction with other analyses, including RSI, MACD, CCI, and Rate of Change. CCI - Commodity Channel Index. The difference between the mean price of the currency and the average of the mean price over a predetermined period time. MACD - Moving Average Convergence/Divergence Consists of two exponential moving averages that are plotted against the zero line. The zero line represents the times the values of the two moving averages are identical. Momentum Designed to measure the rate of price change, not the actual price level. Consists of the net difference between the current closing price and the oldest closing price from a predetermined period Moving Average The average of a number of prices over a given time period divided by the number of entries. Parabolic SAR Parabolic is a time/price trend following system that automatically sets stops (trade exit prices) and assumes either long or short position at all times. This study type is also known as "SAR" which stands for "stop and reversal", meaning that the protective stop triggers a position reversal. Rate of Change The oldest closing price divided into the most recent one. RSI - Relative Strength Index Measures the relative changes between the higher and lower closing prices, based on a 0 to 100 scale. Stochastic Stochastic studies are based on the premise that as prices rise, closing prices tend to be near the high value. Conversely, as prices fall, closing prices are near the low for the period. Stochastic studies are made of two lines, %D and %K, that move between a scale of 0 and 100. The %D line is the moving average over a specified period of time of the %K line. The %K line measures where the closing price is compared to the price range for a given number of periods. Slow Stochastic Variation on the Stochastic where the new slow %K line is the original %D line. Then the new slow %D line is calculated off the new %K line. Standard Deviation Calculates intervals around the mean (red line) for the selected time period. One line above and below the mean represent one standard deviation, two lines above and below represent two standard deviations. Ninety-five percent of moves should fall within two standard deviations of the mean. Regression This measures how far the current price is from the mean defined by the selected time period. Reference: Cornelius Luca, Trading in the Global Currency Market. Paramus, NJ, Prentice Hall, 1995 13
Deal Blotter The Deal blotter provides pertinent details on all open trades, as well as trades that have been closed out during the current trading day. All information may be sorted by clicking on a specific column header, or by using the drop down list on the lower loft of the window. Action taken Currency Pair Deal Amount The rate at which the deal was filled System- generated confirmation number USD value of deal Deal Time Stamp Sequence # Select view All deals or specific currency pair Number of deals in selected view 14
Activity Log The activity log lists each action completed or attempted in your account. Each time a trade is executed a deal request message will appear, followed by an order executed confirmation with details of the trade or a deal failed message followed by the reason. When pending orders are either filled or fail they will also appear in your activity log. This log will list actions continually from the time the trader logs onto the dealing system until he logs off. Transactions made in a previous session can be viewed in an activity report in the report section Rate History The rate history window is a summary view of today's prices, listed by currency pair. This window can be customized according to user preference. The columns may be sorted and rearranged in the same manner as the Position Management window. Quoted Currency Pair Current Bid/Ask Prices Today s highest & lowest quote The difference between today s opening rate (midnight GMT) and the current rate The time at which the current price was posted 15
Reports The dealing software tracks all trading activity in real time, allowing clients to view current open positions, real-time profit and loss, margin availability, account balances, and all historical transaction details directly on-screen. In addition, by clicking on the reports tab on the menu bar, clients may access two ad hoc reports: Account Value Summary and Detailed Transaction Listing. Both reports may be generated for a specific date range, or to date and printed for your records. Please note that account statements are mailed to trading clients at the beginning of each month, listing all deposits/withdrawals during the statement period, realized P&L, and current account balance as calculated at the close of business on the last business day of the month Account Value Summary Client D/W: Lists all deposits and withdrawals made within the selected time period. Realized P/L: Sums and lists all profits and losses realized by the closure of open positions. Interest: Lists all interest charges made within the selected month. Balance: Displays the balance at the end each day where movement of monies occurred Totals: Sums up each column within the AVS and displays the balance at the end of the selected month. 16
Detailed Transaction Listing (DTL) Confirmation No. Displays the confirmation number allocated to each trade upon execution Buy/Sell: Indicates whether the Base Currency was bought or sold Base Currency: The first currency in a currency pair Amount: Displays the amount of Base Currency that was bought or sold Cross Ref: Displays the confirmation number of any offsetting trade. NOTE: An offsetting trade is one that closes an open position Counter Currency: The second currency in a currency pair Amount: Displays the amount of Counter Currency that was bought or sold Rate: Displays the rate at which the trade was executed $ Realized P/L: Displays the profit or loss resulting from the closure of an open position Position: Displays the open position at the end of the business day Roll Adjustment: Displays the points applied to the open trades upon execution of the over night roll Open Position: Displays the open position for the start of the next business day Total Daily $ Realized P/L: Displays the total profit or loss that was realized on closure of open positions prior to the close of the trading. 17