CFD Trading

What is the CFD financing cost?

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…

What are the CFD Holiday Hours?

Due to the global nature of CFDs, traders should be aware of special holiday trading hours observed in each market. FXCM has provided a monthly calendar…

Is there a maximum order size per trade ticket?

FXCM has no limits on maximum order sizes but there is a maximum limit per ticket. The Trading Station platform allows for order sizes up to 50 million…

In what countries is CFD trading allowed?

CFDs currently trade in Australia, the United Kingdom, throughout the Euro Zone, Russia, Japan, Canada, South Africa, Switzerland, Canada, New Zealand,…

What is the liquidity like in CFDs?

Liquidity for CFDs is comparable to the underlying. Different indices and commodities experience different levels of volatility and liquidity. To see the…

When I trade a CFD, how much am I trading?

FXCM uses a "lot-based" trading system. This allows our platform to aggregate all client positions into standardised trade sizes, simplifying…

How do I calculate the Notional Values for a CFD?

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,…

Will I receive credit for holding the underlying product when margin is calculated?

No. Since the underlying is held through a different account, there is no way to confirm an accurate hedge. …

Who primarily trades CFDs? Small investors or large institutions?

Retail traders, speculators and hedge funds are the typical market participants for CFDs. CFDs are complex, leveraged products that can put clients at…

What is the underlying asset?

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…

What is Fair Value?

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…

What are the benefits of using CFDs to hedge exposure to an underlying asset rather than using options or futures?

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.…

Do margin requirements change for CFDs?

Yes, margin requirements can periodically change to account for changes in market volatility and currency exchange rates. Any margin changes will be shown…

Are CFD profits unlimited?

FXCM will impose no limits to profit. …

Is CFD trading limited to certain hours?

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,…

What is a "pip" for CFDs?

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 "…

What are the costs and fees involved with trading CFDs?

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.…

What are the upcoming dividends for FXCM's Index CFDs?

Dividends may impact the amount of “Rollover” you pay on your Index CFD position.  Index CFD's are made up of a group of stocks that…

Is there slippage for CFDs?

Like most markets, traders can experience slippage when trading CFDs. The level of slippage experienced will depend on liquidity in the market and the…

What are CFDs?

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…

Is there a government regulator for CFDs?

Yes. CFDs are regulated in most countries in which they are traded. …

Is there more risk involved in trading a CFD over trading 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…

What are FXCM Australia’s CFD margin requirements?

FXCM CFD margin rates for each instrument are displayed in the dealing rates window on the Trading Station and in the CFD Margin Requirements PDF. …

Do I have control of the underlying asset when trading CFDs?

No. The CFD merely tracks the underlying price. However, it does give the trader rights or dividends associated with the underlying asset. …

Are there initial and maintenance margin levels for CFDs?

Initial margin for each position can be seen in the Create Order window.   On Standard and Mini accounts there are no set maintenance margin levels.…

Are there certain hours where CFDs are more active?

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…

Are there any benefits to trading a CFD over trading the underlying asset?

Yes, there are. CFDs give traders a lot of options that he or she would not otherwise have, allowing the trader to be flexible. CFDs are traded with…

Are multiple accounts required to trade different types of CFDs?

No. An FXCM Trading Account provides access to trading in Forex, Equity Indices, and Commodities. …

What is the smallest amount a CFD price can move?

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…

Are there expirations for CFDs?

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…

Where does FXCM derive the prices for CFDs?

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…