The Currenex trading platform is an institutional-level trading platform that provides Electronic Communication Network (ECN) access to all market participants. It is a trading platform that enables traders to get direct access to many liquidity providers, thus giving traders access to the most transparent pricing possible in the markets.
The company producing this trading platform was originally known as Waldron Management. It was founded in 1994 as the first multi-dealer exchange platform. It became known as Currenex in 1999 and since then, the trading platform has been made available to brokers for use of their clients ever since. In this short trading tutorial, we will go over the necessary functions which every trader who intends to use MT5 must be familiar with.
ECN trading with platforms such as Currenex differs from MT4/MT5 trading in the sense that traders are getting prices DIRECTLY from the liquidity providers and not from broker dealing desks acting as the counterparty. That way, latency is reduced and orders are more quickly executed. This bypasses the problems of slippages and re-quotes experienced by MT4 traders.
Let us look at how the Currenex platform works.
Opening Orders on Currenex Platform
The process of opening orders on the Currenex platform is not so user-friendly. You need to really know what you are doing before you can do this. Let us see how to place orders on Currenex. Six types of orders can be opened on the Currenex platform. These are:
- Limit Buy
- Limit Sell
- Market Buy
- Market sell
Pending orders are used when current prices of a currency pair is unattractive (either too costly or there is a chance that the trade will go against the trader) and there is an expectation of the trader that conditions in future will favour a profitable trade. A typical example is when a trader is looking to sell a currency, but the price action may still advance northwards before it reverses. This can be seen when the price is not yet at the nearest resistance. In a situation when the trader feels that the price may advance before it reverses in his expected trade direction, a Limit order is used. If the trader intends to buy, a Buy Limit is used and if he intends to sell, a Sell Limit is used.
Currenex Platform – Market Sell
- From the displayed currency pairs, click on the “Offer” box as shown in the diagram below:
- Several prices from liquidity providers will display. Choose the price you want and click on “Create Order” (appears on bottom of prices displayed). Not shown.
- A pop-up will appear. Click on “Advanced” at the bottom left corner of the pop-up. Another pop-up appears as shown:
- Click “Market” to set your order type to instant executions at market price.
- Enter the volume you want to trade. On currenex, trade volume is not expressed as lots the way it is done on MT4/MT5. It is rather expressed as amount that you will trade. The amounts and corresponding lot sizes are shown in the diagram.
- Click on “Place Order” button to execute the trade.
A buy trade works in the same way. The difference is that in step 1, you click on “Bid” and not Offer. Then follow the same process as in sell orders.
Setting Stop Loss and Profit Target in Currenex
This is done using the One Cancels Other (OCO) trade type.
- Follow the Order process above until you get to the second pop-up
- Click on the “One Cancels Other” tab (located below the Market, Limit and Stop buttons) on the top-left corner of the pop-up
- Set the stop loss in the space shown as above
- Set your Take Profit as shown
- Click on “Place Order” to complete the order process
Changing Order Types
The trader has the option of using three order types:
- Good till Cancelled (GTC)
- Market Orders
- Immediate or Cancel (IOC) orders
GTC orders are used for pending orders and these orders stay valid until the trader cancels them. Market orders are self-explanatory, while IOC orders are instructions to cancel any order portions not fulfilled at market price.
Adding New Currenies to the Screen
In the Currenex platform, this is known as adding market tiles. This is a button marked “CCY” at the top left corner of the platform screen. Simply click on it and a pop-up with the list of available currencies will display. Click on the currency you want to add to the screen and it will be done.
Checking your positions
Your profit/loss position on active trades can be viewed by clicking on the “Margin Position” tab, just below the currency tiles on the screen.
The Currenex platform requires that a trader must demo-trade it thoroughly to understand the workings of the platform. It is a more difficult platform to use than MT4/MT5, but of course, this platform was built for professional traders with a high degree of proficiency. So study it and show yourself proficient in its use.