At FXCM, the financing cost for your CFD trade is referred to as ‘rollover.' This is the interest paid for holding a position past 5 PM EST and is based on the size of the position. The formula for financing…
Learn More
Fair Value is a calculation that factors various things that tend to affect the price of a stock index futures contract, such as interest and dividends. A Fair Value Rate adjustment is often applied by many media outlets when quoting market index prices based on futures contracts.
A pip is the increment FXCM uses to account for profits and losses. It is the standard used in the Forex market, in place of "points" or "ticks". On Forex instruments, the "pip" is the second-to-last digit in a price…
Learn More
The Spread is the difference between the Buy Price and the Sell Price for any instrument, and is displayed in pips. FXCM quotes tight spreads, which you can view at any time in the Dealing Rates window of your Trading…
Learn More
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…
Learn More
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…
Learn More
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,…
Learn More
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…
Learn More
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…
Learn More