CFD Trading - FXCM Support

CFD Trading

Do CFD's expire?

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…

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 Margin?

Margin can be thought of as a good faith deposit required to maintain open positions. This is not a fee or a transaction cost, it is simply a portion of…

What are your trading hours?

FXCM's trading hours vary by product. For forex, trading opens on Sundays between 5:00 PM ET and 5:15 PM ET and closes on Fridays around 4:55 PM ET.…

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…

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,…

What are your typical spreads?

At FXCM, the forex spreads you have access to are determined by the forex execution you choose. FXCM offers two types of forex execution, No Dealing Desk…

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 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 "…

Are multiple accounts required to trade different types of CFDs?

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

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.…

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 there initial and maintenance margin levels for CFDs?

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

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…

Are there requotes?

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…

Do palladium trades expire?

Palladium does not expire. Copper is the only metal which has an expiration. All other metal trades will remain open until such time the client closes the…

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.…

Will my margin requirement be lowered should I attempt to hedge with similar products?

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…

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…

What is FXCM's leverage on CFD products?

The required margin and specific leverage for CFD products vary.  To view the most up-to-date margin requirements for CFD products, visit the FXCM…

How can I see CFDs on my live account?

Depending on the FXCM entity your account is set up with, certain products are available.  To see which entity your account is set up with: Log…

Is there a government regulator for CFDs?

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

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…

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 standardized trade sizes, simplifying…

What are CFDs?

Clients of FXCM LTD. can trade Stock Indices, Oil, and Precious Metals from their FXCM Trading Station using CFDs. CFD stands for Contract for Difference.…

How quick is CFD execution?

Execution in CFDs is comparable to the underlying market. …

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…

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. …

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…

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 would not otherwise have, allowing him to be flexible. CFDs are traded with leverage, allowing…

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…

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…

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…

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…

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 CFD profits unlimited?

FXCM will impose no limits to profit. …

Are CFD profits unlimited?

FXCM will impose no limits to profit. …

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…

Where does FXCM derive the prices for CFDs?

CFD prices are derived from the underlying index or spot product. For FXCM Ltd. Index CFD products, the quoted price is based on the relevant futures…