CFDs provide a linear payoff: a rise or decline in the underlying asset will result in an equivalent rise or decline in a trader's account balance. Also, unlike options, there are no initial premiums that need to be paid. Another…
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Clients of FXCM can trade Stock Indices, Oil, and Precious Metals from their FXCM Trading Station using CFDs. CFD stands for Contract for Difference. CFDs are specialised and popular Over The Counter (OTC) financial products that allow traders to easily…
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Like most markets, traders can experience slippage when trading CFDs. The level of slippage experienced will depend on liquidity in the market and the position size.
Trading with higher leverage means there is a greater risk of loss, as well as potential for profit. Depending on the amount of leverage used, small moves in a CFDs price could generate significant changes in an account balance. However,…
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FXCM has no limits on maximum order sizes but there is a maximum limit per ticket. The Trading Station platform allows for order sizes up to 50 million per trade for forex positions. A trader has the ability to trade…
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Yes. CFDs are regulated in most countries in which they are traded.
CFDs currently trade in Australia, the United Kingdom, throughout the Euro Zone, Japan, Canada, South Africa, Switzerland, New Zealand, and other countries.
Yes, margin requirements can periodically change to account for changes in market volatility and currency exchange rates. Any margin changes will be shown in the MMR column in the Simple Dealing Rates window of the Trading Station. Margin requirement changes…
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No. The CFD merely tracks the underlying price. However, it does give the trader rights or dividends associated with the underlying asset.
Initial margin for each position can be seen in the Create Order window. Please be advised that trading on margin carries a significant risk of loss and is not suitable for all investors.
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Since a CFDs price is based on the price of the underlying asset, peak trading hours are typically the hours when the exchange for the underlying asset is open. There are also off-peak trading hours for several CFD products when assets trade in the electronic markets.
Yes, there are. CFDs give traders a lot of options that he or she would not otherwise have, allowing the trader to be flexible. CFDs are traded with leverage, allowing a trader to control a large market position while employing…
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