Insta Futures trading

FAQ

• What is ZeroSpread?
  ZeroSpread is a new trading account with zero spread and low commissions. It allows InstaTrade traders to increase their income level, as well as to have an accurate forecast of trading profits. You can trade all types of assets, without hidden margins and additional transaction costs.
  
  The account is suitable for traders who are used to working with high speeds and trading volumes, as well as those who are taking their first steps in the Forex world and want to keep trading costs under control.
  
  Trading is carried out on the MT4 terminal
• Why does InstaTrade provide such conditions?
  We are constantly developing, taking into account the needs of customers and strive to meet quality standards. It is important to us that InstaTrade traders can have an accurate trading forecast and plan their income. Therefore, we have developed a new type of account with zero spread.
• How does trading on the ZeroSpread account differ from the usual one?
  The first difference is zero spread and minimal commissions, which is the uniqueness of the ZeroSpread trading account. This makes it easier to enter and exit trades without worrying about overhead costs, and also eliminates the possibility of sudden expansion of spreads on trades. The second fundamental difference is the minimum lot size of 0.01. With ZeroSpread, traders trade all types of assets from one account, can trade on any strategy and use Expert Advisors.
• What is the benefit of trading on the ZeroSpread account?
  The ZeroSpread account allows you to save on trading costs, namely on spreads (the difference in the purchase and sale price of an asset) and commissions charged by the broker. This is beneficial to traders who take a large volume of transactions or trade as scalpers. Since trading fees in this case are quite high, the ZeroSpread account allows you to significantly save on trading costs, as well as predict the amount of profit. ZeroSpread also helps beginners adapt to the trade market and earn income without additional trading costs.
• What is the duration of an InstaFutures contract?  Are InstaFutures subject to the 5-minute rule applied when trading currency pairs?
  No strict rules are set out for the duration of an InstaFutures contract. A trader is free to close a deal in a second after its opening.
• How is a spread with InstaFutures contacts formed?
  A spread is the difference between the buy price or the ask and the sell price or the bid. The bid price is always slightly lower than the ask price. In the case of InstaFutures, a spread is formed by market participants as a natural difference between the best buy and sell offers. A spread exists because the buyers and the seller are not ready to give in to each other and do not insist on an immediate purchase or a sale. This is the rock-solid principle of trading on exchanges that will be true forever. InstaTrade does not charge any spread and does not interfere in its formation.

  Let’s figure out how a spread is formed.

  Imagine that one trader wants to buy 1 lot of EUR/USD InstaFutures at the price of 0.6525. For this, he sets a buy limit order at this level. This is how the bid price is formed, i.e. someone can make a sell deal with the size of up to 1 lot at this price. Another trader wants to sell 1 lot of EUR/USD InstaFutures but thinks that the price of 0.6525 is too high. So, he sets a sell limit order at 0.6550. This is how the ask price appears. In other words, someone can make a buy deal with the size of up to 1 lot. To sum up, the current market quote of InstaFutures is 0.6525/6550, so a spread equals 25 pips.
• What commission does InstaTrade charge for trading this instrument?
  A commission of 0.5% is charged from all trades of all participants in favor of the broker.
• Where are InstaFutures traded?
  This instrument can be traded on MetaTrader 4 (MT4) as well as on the special Gear.
• How can I estimate my would-be profits trading InstaFutures?
  Trading InstaFutures, you can earn as much as from trading any other financial instrument. You can buy or sell these contracts, albeit there are some specifics.

  The price of InstaFutures is determined by supply and demand. In the order book, one can look up current buy/sell orders.

  If a weekly candlestick closes above the opening price, buyers will gain a profit calculated as follows: (0.9999 – the price of opening a buy deal) * trade size in lots * 100. Sellers lose the same amount which was frozen in their accounts as a margin to secure a deal. Trading InstaFutures, remember that a margin amounts to 150% of the highest loss per deal.

  The special calculator is available for traders’ convenience.
• What is an order book and what should I do with it?
  All trades on an exchange are executed in an order book which displays ask and bid prices as well as a volume of an asset which a trader wants to buy/sell at that price.
• What is a limit order (pending order)?
  A limit order is a kind of order to buy or sell an asset at a specified price. If investors do not want to buy/sell an asset immediately at any price, they send a market order which will be executed only at the pre-set price. Market orders are not displayed in an order book.
• Why is a margin required to place limit orders?
  If a trader places a limit order, current limit orders freeze a margin in an account to enable their execution. This is done so that the order book is not clogged with fake orders, i.e. orders that cannot be actually fulfilled by a trader.

  The lot size is 100 futures contracts. The minimum contract is 0.01 lot without any swaps. A margin for buy trades is calculated in a special way, bearing in mind the highest risk.  For instance, opening a sell position at 0.2000, a trader is running a risk that InstaFutures will be closed at 0.9999 in case his forecast comes wrong. In other words, he will lose 100 * 0.1 * (0.9999 - 0.2000) ~ $8 per every 0.1 lot open. Therefore, to sell 0.1 lot at 0.2000, the margin will be $8.

  To reduce risks, the trading platform will require 150% of a margin size to open a position. In the example above, a trader will be required to provide the following margin: $8 * 150% = 12$.

  A basic margin for buy positions will be calculated as follows: 100 * trade size in lots * market quote.