Execution in CFDs is comparable to the underlying market.
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…
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.
Yes. In addition to our policy of transparency in reporting rollover, due to the average notional trading volume that FXCM generates to the liquidity providers it deals with, FXCM is able to pass to its clients' attractive rollover rates on…
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 "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.
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…
FXCM will impose no limits to profit.
No, FXCM maintains a no re-quote policy for forex orders, indices, metals, and oil. Circumstances may exist based on order size, trading pattern, and/or market conditions when individuals may not receive execution at the requested rate. In such cases, orders…
Yes, there are. CFDs give traders a lot of options that he would not otherwise have, allowing him to be flexible. CFDs are traded with leverage, allowing a trader to control a large market position while employing a smaller amount…
FXCM 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 and…