Commodity CFDs, which include UKOil, USOil, NGAS, SOYF, WHEATF and CORNF, Treasury CFDs, like BUND, and Copper, the only metal with an expiration, are among our products with an expiration date. This can occur monthly, every two months or quarterly…
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The financing cost for your CFD trade is referred to as ‘Rollover.' Rollover is the interest paid or earned for holding a position overnight, any client holding an open position at the end of the trading day (5pm EST) will…
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Dividends may impact the amount of overnight costs you pay or earn on your Index CFD position. Index CFD's are made up of a group of stocks that may pay dividends throughout the year. When a dividend is paid on…
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When you place a CFD Trade with FXCM, you are using leverage* to control more money than you actually have to put down for the trade (margin). For example, if you place a trade on GER30 (DAX) today – let’s…
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How are Index CFD dividends? For information on Index CFD Dividends please click here. How can I see when future dividends may impact my positions? For each index below, the dividend will be displayed as ‘High’, ‘Medium’, or ‘Low’. For…
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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…
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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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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.
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…
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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.
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.