Execution Risks



The information contained on this page is intended to inform prospective and current traders of some of the features and risks associated with off-exchange retail forex trading. The content is primarily geared towards the Friedberg Direct Trading Station II functionality, but it may also be used for general information regarding execution in the forex market. Order types and execution procedures may vary depending on which platform is utilized. Please be advised, no single document can completely address each and every risk associated with transactions in a financial market.


Friedberg Direct aims to provide clients with the best pricing available and to get all orders filled at the requested rate. However, there are times when the expected price on an order is different than the executed price. On the most basic level, slippage occurs when there is insufficient liquidity at a desired price. The size of a client order, the Time In Force on the order, and the volume available at the quoted price are key factors that influence final execution.


The "Market Range" market order allows traders to manage the amount of potential slippage they are willing to accept on a market order. Zero indicates no slippage is permitted. When zero is selected, the trader is telling Friedberg Direct his order may only be executed at the exact price requested. The Time In Force will also affect the execution of a market range order. If Fill or Kill ("FOK") is utilized then liquidity for the entire order must exist for the trade to be filled. If Immediate or Cancel ("IOC") is utilized then liquidity must exist for at least some of the order to be filled. Additionally if the size of the IOC order exceeds available liquidity then only the portion of the order that can be filled will be executed and the remaining amount will be rejected.

The "At Market" orders do not prevent slippage or limit slippage to a specified range. An At Market order with a time in force of FOK indicates the order is to be filled immediately and entirely at an available market price. An IOC At Market order indicates the order is to be filled immediately, but not entirely, at an available market price. A GTC At Market order can be filled partially multiple times until the order is filled completely or the client cancels the remaining amount. The size of the market order, significant news announcements and rapidly changing market prices can result in execution at a different price than desired. If the size of the At Market order exceeds available liquidity then the order can be split into smaller orders at different prices.


Limit orders will be filled at the desired price, better than desired price, or not at all. There is no execution guarantee with limit orders as client orders are filled at a first come first serve basis and may remove available liquidity. It is possible a limit price will be touched and the order will not fill. Limit orders will not be executed at a worse price than the desired price.


Stop Orders behave like GTC At Market orders. The order is designed to limit a trader's losses but a stop order can be slipped from the desired price. The size of the order will also play a role in determining what price the order is filled at. If the size of the Stop order exceeds available liquidity then the order can be split into smaller orders at different prices.


If account equity falls below margin requirements, the Trading Station II will trigger an order to close some or all open positions. When positions have been over-leveraged or trading losses are incurred to the point that insufficient equity exists to maintain current open positions, a margin call will result, and open positions must be liquidated. In most cases, the Trading Station II will close all open positions when a margin call is triggered. However, this is subject to liquidity, and in some illiquid scenarios, some positions may remain open. The size of the order(s) being liquidated play a significant role in the speed of execution and prices received. The larger the order being liquidated the greater likelihood of slippage and partial fills.

There is no price certainty on a margin call and there may be instances when liquidity does not exist at the exact margin call rate. As a result, account equity can fall below margin requirements by the time orders are filled, even to the point where equity account becomes negative. Clients should be cognizant that all funds on deposit in an account are subject to loss. Friedberg Direct also recommends that traders use stop orders to limit downside risk in lieu of using a margin call as a final stop.

Friedberg Direct's Margin Call System is designed to alert clients whose account equity drops below margin requirements which can potentially give clients extra time prior to all open positions being liquidated due to a margin call.

Please click here to view more information on when a margin warning or margin call is designed to be initiated.

Friedberg Direct's Margin Call System is designed to alert clients to the fact that their account equity has fallen below margin requirements by the presence of a "W" in the "MC" column in the Trading Station. Up-to-date margin requirements are displayed in the "Simplified Dealing Rates" window of the Trading Station Platform by currency pair. This feature is designed to alert clients via email as well. However, clients should not rely on receiving this form of alert and should monitor their account at all times as Friedberg Direct shall not be liable for any communication failures or delays.

After a warning is initiated, client's account will be locked from opening any new positions and will have approximately five calendar days from 5 PM ET on the day that the margin warning is initiated, to bring account equity back above the Maintenance Margin Requirement Level. There are a few ways to accomplish this; 1) Deposit more funds. 2) Close out existing positions 3) Beneficial market movements; in the event of a beneficial market movement, the client will need to call the Trading Desk to reset the Margin Warning Level.

The "MC" column within the Trading Station will be automatically reset in real time to "N" (meaning that client is no longer in margin warning status), should client decide to deposit more funds or close out open positions in an attempt to free up available margin. Please note that while most credit card deposits are processed instantaneously, some credit cards deposits may take up to 24 hours.

There will be a daily maintenance margin check at 17:00 ET. If the market has moved back in your favor at that time such that your Usable Maintenance Margin (Usble Maint Mr) is greater than 0, your Margin Status will be reset (MC = N). Margin Status will only be checked at 17:00 ET.

Note that it is also possible that beneficial market movements during this period may also bring your account equity above the required Maintenance Margin level; however this will not automatically reset your Margin Call Warning Status. You may contact Friedberg Direct if you wish to have your margin reset. If you fail to do so, your positions will be triggered to liquidate at the end of the fifth day. Should your equity continue to fall to the Liquidation Margin Level, your positions will be automatically liquidated. Contact Friedberg Direct Powered by FXCM Technology.

If, after five calendar days, client's margin remains below the requirement level, all positions will be liquidated at approximately 6 PM ET. Please note that weekends and bank holidays will count against the five days given to bring the account equity above the Maintenance Margin Requirement.

Please click here to view more information on when accounts in "Warning Status" will have positions liquidated.

If at any time, client's account falls to the Liquidation Margin Level; the Margin Call System is designed to trigger the liquidation of all open positions. The liquidation process is entirely electronic, and there is no discretion on Friedberg Direct's part as to the order in which trades are closed.

It is important to note that an entry order which should have been triggered while a client's account is in Margin Warning Status, will be deleted and not executed unless that order is meant to close out any open positions (acting as a Stop or Limit) as long as the order's trade size is equal to, or less than, the open position's trade size. If the order to close is larger than the open position, the entire entry order will be deleted and the open position will not be closed out.


A delay in execution may occur for various reasons, such as technical issues with the trader's internet connection or by a lack of available liquidity for the currency pair that trader is attempting to trade. Due to inherent volatility in the markets, it is imperative that traders have a working and reliable internet connection. There are circumstances when the trader's personal internet connection may not be maintaining a constant connection with the servers due to a lack of signal strength from a wireless or dialup connection. A disturbance in the connection path can sometimes interrupt the signal and disable the Trading Station, causing delays in the transmission of data between the trading station and the server. One way to check your internet connection with the server is to ping the server from your computer.

If at any time you are unable to manage your account via the Trading Station, you may call toll free at (888) 296-5012 or visit FXCM.com/ca for contact information


Friedberg Direct strives to provide traders with tight, competitive spreads; however, there may be instances when spreads widen beyond the typical spread. Spreads are a function of liquidity and in periods of limited liquidity, at market open, or during rollover at 5:00 PM ET, spreads may widen in response to uncertainty in the direction of prices or to an uptick in market volatility, or lack of available liquidity. It is not uncommon to see spreads widen particularly around rollover. Trade rollover is typically a very quiet period in the market, since the business day in New York has just ended, and there are still a few hours before the new business day beings in Tokyo. Being cognisant of these patterns and taking them into consideration while trading with open orders or placing new trades around these times can improve your trading experience. This may occur during news events and spreads may widen substantially in order to compensate for the tremendous amount of volatility in the market. The widened spreads may only last a few seconds or as long as a few minutes. Friedberg Direct strongly encourages traders to utilise caution when trading around news events and always be aware of their account equity, usable margin and market exposure. Widened spreads can adversely affect all positions in an account.


Greyed out pricing is a condition that occurs when market is thin for particular currency pairs and liquidity therefore decreases. Friedberg Direct does not intentionally "grey out" prices; however, at times, a severe increase in the difference of the spread may occur due to an announcement that has a dramatic effect on the market that limits liquidity. Such greying out of prices or increased spreads may result in margin calls on a trader's account. When an order is placed on a currency pair affected by greyed out prices, the P/L will temporarily flash to zero until the pair has a tradable price and the system can calculate the P/L balance.



The trading desk opens on Sundays between 5:00 PM ET and 5:15 PM ET. The trading desk closes on Fridays at 4:55 PM ET. Please note that orders placed prior may be filled until 5:00 p.m. ET and that traders placing trades between 4:55 p.m. and 5:00 p.m. may be unable to cancel orders pending execution. In the event that a Market GTC Order is submitted right at market close, the possibility exists that it may not be executed until Sunday market open. Please use caution when trading around Friday's market close and factor all the information described above into any trading decision.

The open or close times may be altered. Outside of these hours, most of the major world banks and financial centers are closed. The lack of liquidity and volume during the weekend impedes execution and price delivery.


Shortly prior to the open, Friedberg Direct refreshes rates to reflect current market pricing in preparation for the open. At this time, trades and orders held over the weekend are subject to execution. Quotes during this time are not executable for new market orders. After the open, traders may place new trades, and cancel or modify existing orders.


Please be aware that during the first few hours after the open, the market tends to be thinner than usual until the Tokyo and London market sessions begin. These thinner markets may result in wider spreads, as there are fewer buyers and sellers. This is largely due to the fact that for the first few hours after the open, it is still the weekend in most of the world.

Learn more about spread costs and market hours and activity:


Sunday's opening prices may or may not be the same as Friday's closing prices. At times, the prices on the Sunday open are near where the prices were on the Friday close. At other times, there may be a significant difference between Friday's close and Sunday's open. The market may gap if there is a significant news announcement or an economic event changing how the market views the value of a currency. Traders holding positions or orders over the weekend should be fully comfortable with the potential of the market to gap. One of the great things about trading at Friedberg Direct is that outside of announced major holidays, the trading hours routinely close only once a week on the weekends, which corresponds with the hours of liquidity providers. In contrast, most stock exchanges close five times each week, and can gap significantly on each day's open.


Traders who fear that the markets may be extremely volatile over the weekend, that gapping may occur, or that the potential for weekend risk is not appropriate for their trading style, may simply close out orders and positions ahead of the weekend. It is imperative that traders who hold open positions over the weekend understand that the potential exists for major economic events and news announcements to affect the value of your underlying positions. Given the volatility expressed in the markets it is not uncommon for prices to be a number of pips away on market open from market close. We encourage all traders to take this into consideration before making a trading decision.


It is important to make a distinction between indicative prices (displayed on charts) and executable prices. Indicative quotes are those that offer an indication of the prices in the market, and the rate at which they are changing.

These prices are derived from a host of contributors such as banks and clearing firms which results in multiple levels of pricing and liquidity, therefore the charts (which can only reflect one level of pricing) may not reflect where all of Friedberg Direct's liquidity providers are making prices at any given time. In the event that a quote is withdrawn or liquidity is depleted at the indicative rate displayed on the chart, it is possible that executions may occur at an executable price that is different from the indicative price that appears on the chart.
Because the spot forex market lacks a single central exchange where all transactions are conducted, each forex dealer may quote different prices. Therefore, any prices displayed by a third party charting provider, which does not employ the market maker's price feed, will reflect only indicative market prices and not actual dealing prices where trades will be executed.


There are a series of inherent risks with the use of the mobile trading technology such as the duplication of order instructions, latency in the prices provided, and other issues that are a result of mobile connectivity. Prices displayed on the mobile platform are solely an indication of the executable rates and may not reflect the actual executed price of the order.

Mobile TS II utilizes public communication network circuits for the transmission of messages. Friedberg Direct shall not be liable for any and all circumstances in which you experience a delay in price quotation or an inability to trade caused by network circuit transmission problems or any other problems outside the direct control of Friedberg Direct. Transmission problems include but are not limited to the strength of the mobile signal, cellular latency, or any other issues that may arise between you and any internet service provider, phone service provider, or any other service provider.

Please note some features of the Trading Station II will not be available on the Mobile Trading Station. Key differences include, but are not limited to, charting packages will be limited to five minute charts, daily interest rolls will not appear, and the maintenance margin requirement per financial instrument will not be available. Also, Micro account holders will be charged and debited a service fee of $0.10 per 1,000 unit lot for each trade entered using the Mobile TS II. It is strongly recommended that clients familiarize themselves with the functionality of the Mobile Trading Station prior to managing a live account via portable device.


Individuals should review the information below carefully which details the differences regarding execution, trading features, and platform settings specific to the Friedberg Direct FXCM MT4 platform.

Feature Details
Tradable Currency Pairs 56
GMT Offset 0
Default Lot Size 0.01 (micro lots)
Stop Loss and Take Profit Restrictions None
Pending Order Restrictions None
Scalping Restrictions None
Default Order Type Fill or Kill
Hedging Yes
Close Part of a Position Yes
Max Deviation Yes
Default Deviation 10 (1 pip)
Order Execution Type Instant Execution

Orders to open and close trades, as well as take profit (TP) orders execute Fill or Kill. These orders only execute if they can fill in their entirety at the requested price. These orders cannot be broken up and filled at multiple prices.

In the event that sufficient liquidity is not immediately available to execute a Fill or Kill order in its entirety, execution ceases.

Stop Loss (SL) orders, and orders submitted due to margin call do not execute Fill or Kill. These orders do fill in their entirety at the same price; however, execution will not cease if sufficient liquidity is not immediately available. Execution will continue until a price becomes available to fill the entire order.

The maximum number of open orders is capped at 500 individual orders per account. This restriction includes both open orders and pending orders. The MT4 platform will display an error message if traders attempt to open more than 500 individual orders. Stop Losses and Take Profits are exempt from this restriction.


When positions are over-leveraged or trading losses produce insufficient equity to maintain current open positions, a margin call results and open positions must be liquidated.

Friedberg Direct's Margin Call System is designed to give you extra time when you are below margin requirement but above the auto-liquidation level.


When free margin reaches 0 (and margin level drops to 100%), a margin warning initiates. You then have approximately five calendar days from 5 PM ET on the day the margin warning is initiated to bring account equity back above the Maintenance Margin Requirement Level.

  • Deposit more funds
  • Close out existing positions

You can also wait out the warning for beneficial market movements. A daily margin maintenance check is performed based on a snapshot of your equity at 16:00 ET. If at the time of the check your equity is above the Used Maintenance Margin requirement, your Margin warning will be reset between 16:45 and 18:00 ET. If the market moves in your favor during the trading day and you would like to remove the warning manually you are able to call the Trading Desk to reset the Margin Warning.


While all positions liquidate after the five-day grace period, if equity passes below the auto-liquidation level (25% of required margin), trades close by size of loss, from largest to smallest, as recorded in the Profit column at the time of auto-liquidation. These liquidations occur automatically until the account is out of auto-liquidation status. The five-day grace period is not reset until account equity is above the maintenance margin level.


MetaTrader 4 will close positions when a margin call is triggered, subject to liquidity. In some illiquid scenarios, some positions may remain open. The size of the orders play a significant role in the speed of execution and prices received. The larger the liquidated order, the greater likelihood of slippage and partial fills.

There is no price certainty on a margin call, and there may be instances when liquidity does not exist at the exact margin call rate. As a result, account equity can fall below margin requirements by the time orders are filled, even to the point where equity account becomes negative. All funds on deposit are subject to loss. Use stop orders to limit downside risk in lieu of a margin call as a final stop.

After five calendar days, if your margin remains below the requirement, all positions are liquidated at approximately 6 PM ET. Weekends and bank holidays count toward the five days.

Learn more about margin warnings and margin calls.


Interest rates are not displayed on the MetaTrader 4 Platform; however, traders will pay or accrue interest in accordance with the current Friedberg Direct rates. To obtain the rollover rates traders can view them on the Friedberg Direct Trading Station II platform or call Friedberg Direct customer service for current rates. Please be advised that interest rates are provided to Friedberg Direct by multiple liquidity providers. Every effort is made to display rollover rates one day in advance on the Friedberg Direct Trading Station II. However, during times of extreme market volatility, rates may change intraday.

Any positions that are open at 5 p.m. ET sharp are considered to be held overnight, and are subject to rollover. A position opened at 5:01 p.m. is not subject to rollover until the next day, while a position opened at 4:59 p.m. is subject to rollover at 5 p.m. ET.


Expert Advisor's (EA) are automated trading tools that can perform all or part of a trading strategy. While FXCM offers proprietary EAs, there are others developed by third parties. FXCM does not vouch for the accuracy or reliability provided by the EAs not in its control. Traders utilizing an EA do so at their own risk. Additionally, many EA's employ the use of micro lots and do not account for fractional pip pricing. On the MetaTrader 4 platform the smallest lot size increment is 1k and fractional pips are used. Prior to trading, please contact your EA provider to discuss the lot sizes used in the program and any potential issues that may arise from fractional pip pricing.

Friedberg Direct does not provide Expert Advisors and does not vouch for the accuracy or reliability provided by any EAs.


With Friedberg Direct MetaTrader 4, all orders execute using instant execution. This MetaTrader 4 execution type enables the maximum deviation ("max deviation") feature.

The maximum deviation feature was designed to control slippage - both negative and positive - in the following way. When creating an order, a number is specified in tenths of a pip (≥0) in the max deviation field. This number is the maximum amount of slippage the order can receive. If the market price moves beyond this amount while the order is executing, the order will cancel automatically. This is how the maximum deviation feature was designed to function.

Friedberg Direct trading policy allows for unlimited positive slippage on all order types. Therefore, Friedberg Direct has developed a way to override the restriction that the maximum deviation feature places on positive slippage. All orders placed on the Friedberg Direct MetaTrader 4 platform fill with the greatest amount of positive slippage possible.

In the event that an order fills with positive slippage beyond the maximum deviation, the platform logs a message in the "Journal" tab. The message has the following format: $ {Amount} - Positive Slippage - {Order Number}. $ {Amount} is the positive slippage the order received beyond the maximum deviation.

If the market price moves negatively beyond the maximum deviation, the order cancels automatically. When this occurs, an "Off Quotes" message is displayed. This is a standard MetaTrader 4 message notifying the user that an order canceled because the market price deviated beyond the order setting.

Please note: dependent upon market conditions, a lower maximum deviation amount can increase the likelihood that an order will be rejected due to the market price moving outside of the maximum deviation.


The Friedberg Direct MetaTrader 4 platform uses Net Stops and Net Limits. When you have multiple positions open in the same currency pair, a stop loss (SL) or take profit (TP) functions as a Net Stop or a Net Limit. Changing the stop loss or take profit price on any individual trade overrides all existing SL and TP prices in the same currency pair.


You cannot use a pending order to close a trade or a portion of it. Pending orders can only be used to open new trades. For example, assume that an account is long 0.2 EUR/USD. A trader then creates a pending order to sell 0.1 EUR/USD. If the pending order price is reached, the order will trigger for execution. However, because the pending order is attempting to trade in the opposite direction of the existing long trade, the pending order will automatically cancel, leaving the long trade unaffected.

When closing a trade, MetaTrader 4 users can use stop loss and take profit orders as an alternative to pending orders.


Friedberg Direct MetaTrader 4 login credentials grant a user with access to the Friedberg Direct Trading Station platforms. Therefore, Friedberg Direct MetaTrader 4 account holders can place and manage trades and orders through the Friedberg Direct Trading Station platforms. Account details for retail clients (e.g. orders, trades, P/L, margin, equity) will match on all of these platforms and their statement of records. However, please note that some functionality available on the Friedberg Direct Trading Station platforms may not be available on the Friedberg Direct MetaTrader 4 platform.


A 0.1 pip mark-up is added to spread for the use of MT4. The 0.1 pip is in addition to the regular mark-up Friedberg Direct adds to the spreads it receives from liquidity providers. Friedberg Direct MetaTrader 4 allows for order sizes up to 50 million per trade. Traders have the ability to trade incremental sizes (multiple orders of 50 million for the same pair). The Friedberg Direct MetaTrader 4 Platform does not show pip costs.


Under rare circumstances it may be necessary to type in a server address when logging into Friedberg Direct MetaTrader 4. So long as you download Friedberg Direct MetaTrader 4 here and install it on your computer or VPS, you will not need these server addresses.

If you need to enter the server address when logging in, be sure to use the one that corresponds to your trading account's denomination. As an example, if your account is denominated in U.S. dollars, you would use "mt4r01.fxcorporate.com."

US Dollars mt4r01.fxcorporate.com
Euros mt4r02.fxcorporate.com
Japanese Yen mt4r03.fxcorporate.com
British Pounds mt4r04.fxcorporate.com
Australian Dollars mt4r05.fxcorporate.com
US Dollars mt4d01.fxcorporate.com
Euros mt4d02.fxcorporate.com
Japanese Yen mt4d03.fxcorporate.com
British Pounds mt4d04.fxcorporate.com
Australian Dollars mt4d05.fxcorporate.com

Order Execution Only

Order Execution Only

Regulatory Documents:
IIROC Brochure: How Can I Get My Money Back, How IIROC Protects Investors, IIROC Complaints Brochure, CIPF Brochure, CIPF Coverage Policy

The relationship between Friedberg Direct and FXCM was formed with the purpose to allow Canadian residents access to FXCM's suite of products, while maintaining their accounts with a regulated Canadian firm. All accounts are opened by and held with Friedberg Direct, a division of Friedberg Mercantile Group Ltd., a member of the Investment Industry Regulatory Organization of Canada (IIROC). Friedberg customer accounts are protected by the Canadian Investor Protection Fund within specified limits. A brochure describing the nature and limits of coverage is available upon request or at www.cipf.ca.