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. CFDs are regulated in most countries in which they are traded.
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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Retail traders, speculators and hedge funds are the typical market participants for CFDs. CFDs are complex, leveraged products that can put clients at risk of losing more than their original investment. CFDs may not be suitable for all investors. Please…
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Execution in CFDs is comparable to the underlying market.
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.
No. The CFD merely tracks the underlying price. However, it does give the trader rights or dividends associated with the underlying asset.
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.
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…
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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.
FXCM will impose no limits to profit.