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…
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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…
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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.
FXCM will impose no limits to profit.
Energy CFDs, which include UK Oil, US Oil, and NGAS have a monthly expiration. Treasury CFDs, like Bund, have a quarterly expiration. Copper, the only metal with an expiration, expires every two months. All other CFD contracts will be treated…
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The hours for each CFD are determined by FXCM's Trading Desk based on the schedule for trading on the exchange for the underlying market, commodity, or asset. A CFD can only be traded during its designated trading time Please refer…
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CFD prices are derived from the underlying index or spot product. For FXCM Index CFD products, the quoted price is based on the relevant futures price minus a commonly used Fair Value. For Commodity CFD products, the price is based…
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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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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. Please be advised…
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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 and is not suitable for all investors.
CFDs currently trade in Australia, the United Kingdom, throughout the Euro Zone, Japan, Canada, South Africa, Switzerland, New Zealand, and other countries. FXCM is regulated in the UK by the Financial Conduct Authority (FCA).