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.
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…
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…
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 is compensated by a markup which is added to the spreads it receives from its liquidity providers which is most traders' main cost of trading. The Spread is the difference between the Buy Price and the Sell Price for…
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.
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…
No. Since the underlying is held through a different account, there is no way to confirm an accurate hedge.
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…
No. Due to the imperfect nature of hedging, hedging with different assets is still prone to considerable risk, and hence does not figure into margin calculations. Please be advised that trading on margin carries a significant risk of loss…
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…