What are Insta Futures (hereinafter referred to as IFs)? IFs enable traders to make deals with each other shaping the price of an underlying asset. The price could vary from zero in case of the wrong forecast up to 1 in case of the right prediction. For example, one trader reckons that EUR/USD will grow by the week close. Another trader thinks that the currency pair will close the week with a decline. Thus, the first trader buys IFs at the current price that is formed through demand and supply. The second trader sells an IF instrument.
Importantly, traders make buy/sell only among themselves. A profit of those who won a deal always equals the same amount of a loss of those who lost minus a 0.5% commission charged by the company. In other words, on Forex you endeavor to compete with the whole market. Unlike Forex, trading IFs you are capable of earning more efficiently than other forumers as you predict a direction which an underlying asset (in particular, EUR/USD) will follow at the end of the week.
It is possible to trade an IF instrument both at a market price and or by means of pending orders (for those who are unwilling to pay a market spread). In the course of such trading, we can evaluate the market depth looking at the order book of a security, which consists of a list of pending orders to buy or sell at various price levels. So, we can judge the actual price though the order book. A trader can sell IFs within a week (the expiry term of IFs is one week), if he/she thinks that the accuracy of his/her prediction gets worse and it is better to fix gains/losses generated since the moment of opening a deal.
According to paragraph 5.5 of the Bonus for posting campaign, trading IFs is the mandatory condition to withdraw profits gained from trading non-withdrawable bonuses.
Trades to sell at a price lower than 0.1 and buy at a price higher than 0.9 are not taken into account when calculating the volume processing required under the terms of the Money for Posting Campaign.
If opposite deals are made according to the locking method, such deals are not valid when trading the bonus funds.
Overview of main features and trading algorithm
A weekly trading session (under the time set in the trading platform) lasts from 00:00 on Monday until 21:00 on Friday. On a weekly basis, trading finishes 3 hours before the market closes.
The order book is available to watch on this web page. If you don’t see any changes for long, it is recommended to refresh the web page.
Traders are invited to try one’s hand at trading IFs on EUR/USD for a one-week(EURUSDweek) and one-month(EURUSDmonth) term. The broker is going to add more instruments as long as the service is gaining more popularity.
If EUR/USD finishes the week higher than at the moment of opening the week, all trades that aren’t closed until 21:00 on Friday will be closed at the price of 1.0000. If the pair closes lower, then its closing price will be 0.0000. If the price coincides, the closing price will be 0.5000. The evaluation is made though comparing the first opening candle of the week with the closing candle.
A lot size is 100 futures. The minimum deal is 0.01 lot with no swaps. A margin is calculated for sell deals through a special formula bearing in mind the highest risk. For example, a trader opens a sell position at the price of 0.2000. He is running a risk that in case of the wrong forecast, IF will be closed at the price of 0.9999, i.e. for every open 0.1 lot, he will lose: 100 * 0.1 (0.9999 – 0.2000) ≈ $8. Therefore, the margin requirement to sell 0.1 lot at the price of 0.2000 equals $8.
With a view to curbing risks, the system will request 150% of the basic margin to open a deal. In the example above, the margin requirement will be $8 * 150% = $14. The basic margin for sell deals will be calculated as follows: 100 * deal size in lots * price.
In essence, the higher the price, the more margin is needed to open buy deals and less margin is needed to open sell deals and vice versa. To provide a better visual picture and simplify calculations of the required margin and risks, you can use a special calculator.
Every Friday when the market closes, the term of IFs expires and relevant deals are closed. A trading result is computed as follows:
If at 23:59 on Friday, EUR/USD closes at a higher price than it opened at 00:00 on Monday, all deals on the IF instrument shall be closed at the price of 0.9999. The opening and closing price difference doesn’t matter. Hence, buyers will make a profit that equals (0.9999 – closing price) * size in lots * 100. At the same time, sellers lose the same amount which is frozen in their accounts as a margin on the deal.
If the closing price is lower, such deals are closed at 0.0001. So, those who kept sell deals are winners.
Sellers make a profit that equals (opening price – 0.0001) * size in lots * 100. On the other hand, buyers lose the same amount.
IFs are labeled on MT4 with the week suffix like EUR/USDweek. To find this trading instrument, right-click on the Market Watch, then choose "Show all". IF instruments come at the bottom of the list.
Variety of comments
In view of specifics of how the exchange mechanism processes deals, the service incorporates temporary orders, breakdown of orders, and a system of comments meant to help traders figure out the trade archives and ongoing deals.
a)Market participants working through MT4 should turn on a display of comments on ongoing deals. Right-click on the Trade tab and tick Comments. These comments provide extra information on trading operations.
b)The Comments field to every IF deal executed through an exchange mechanism contains identifier(s) and details on opening a deal, its closing or cancellation.
An identifier of an open (active) deal consists of three components described below:
1. ”X” is a general comment to confirm that the a deal is executed through the exchange mechanism.
2. A letter code denotes the source of opening a deal:
“M” means a deal that was opened as a result of executing a market order.
“L” means a deal that was opened as a result of executing a pending limit order
“S” means a deal that was opened as a result of executing a pending stop order.
3. A unique digital number is assigned to every open order inside the service. It is common for all deals that were opened within this order, including a market order, a limit or stop pending order with a zero trading result. This number is kept in the archives of trade operations with comments attached as “R”, “LP”, and “SP” accordingly.
For a closed deal, its ID includes extra information.
4. A letter code denotes a reason why a deal was closed:
“M” means that a deal was closed because a market order was executed.
“TP” means that a deal was closed because a take profit was triggered.
“SL” means that a deal was closed because a stop loss was triggered.
5. A unique digital number is assigned to every order closed inside the service. It is common for all deals that were opened within this order.
After opening or executing any order in the history of a certain account, the system generates a technical record with a zero trading result. The comment contains information on a request type and number:
“R” is a trading record including original details of an executed market order to open a deal.
“LP” is a trading record including original details of an executed limit order.
“SP” is a trading record including original details of an executed stop order.
In case an order is rejected by the exchange mechanism due to the lack of funds for its execution, this order is recorded in the trading history with the appropriate comment [No Margin].
Contractual transactions are strictly prohibited. As soon as such cases come to light, the forum member is removed from trading this instrument forever.
Feel free to reach out to Moderators about IFs. When making a request, don’t forget to specify your account number. The text should be precise, brief, and without dramatic words.
Contact E-mail: firstname.lastname@example.org (please indicate your trading account number in your mail. The text must be specific, concise, without emotional coloring).
FAQ about IFs
1. What funds credited can be used to trade IFs? You can trade IFs only with non-withdrawable funds. Prize funds credited for winning contests like the Best answer cannot be used to trade IFs.
2. How much time are non-withdrawable funds available to trade IFs? Non-withdrawable funds are available indefinitely, even a year after such funds are credited. The only condition is that you should trade IFs before submitting a request for withdrawal of gains.
3. Am I allowed to withdraw a profit from trading IFs? Yes, you can.
4. How long should be a duration of a deal with IFs? Are IFs subject to “the five-minute rule” which is applied to trading currency pairs? No restrictions are imposed on the duration of a deal with IFs. You are free to close a deal a second later after it was opened.
5. Is it possible to trade IFs forward? For example, I will receive non-withdrawable funds from now on, but after the first credit I intend to trade IFs in such a volume that will exceed a minimum requirement. So, can I rely on further credits? Yes, you can.
6. Am I allowed to trade the only instrument, i.e. IFs? Yes, you are.
To the attention of traders!
From 04.01.2021 is available new monthly Insta Futures EURUSDmonth for everyday trading (including on weekends).
Expiration will follow the same rules as for weekly futures. Expiration date - 01/29/2021 (the quotation with which the comparison will be made: today's market opening is 01/04/2021).
All other rules and trading features are completely similar to EURUSDweek.
Last edited by MT5 Administrator; 01-08-2021 at 06:24 PM.
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