The word “PIP” stands for Percentage in Point. In Forex, a pip is what you would consider a “point” for calculating profits and losses. On Trading Station, you can see the value of a pip for each of your trades when entering…
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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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Liquidity for CFDs is comparable to the underlying. Different indices and commodities experience different levels of volatility and liquidity. To see the full specifications for each asset, see the CFD Product Guide.
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Under most conditions, the minimum price movement for each CFD is similar to the underlying. To see the full specifications for each asset, see the CFD Product Guide.
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On our low-spreads-plus-commissions accounts (Standard and Active Trader CFD trading accounts), we charge competitive commissions to trade forex. Commissions are based on instrument and trade size, and start as little as $0.05 per 1K lot. With spreads-plus-commissions trading, your platform…
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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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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.
The "underlying asset" is the instrument that a CFD is based on. For example, the underlying asset for the SPX500 is the S&P 500 Index of US stocks.
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.
Yes. CFDs are regulated in most countries in which they are traded.
Friedberg Direct uses a "lot-based" trading system. This allows our platform to aggregate all client positions into standardised trade sizes, simplifying the process of trading in several different markets on one account. It also allows the platform to track profits…
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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.
