The EMBasket (“Emerging Markets Index”) is an Emerging Markets benchmark and is designed to reflect the change in value of the USD against a basket of minor world currencies. The Index was developed by FXCM.
The EMBasket began on January 2, 2019, with a value of 10,000. It represents an equivalent $2,500 position in each of the currencies that make it up. It rises when these currencies strengthen against the US Dollar and lowers as they weaken.
The EMBasket is a great way to speculate on often volatile instruments while lowering the risk of taking exposure on just one currency.
Margin Requirement's may differ depending on account type and can be viewed in the Dealing Rates and create order windows on the trading station or by clicking here.
FXCM's trading hours vary by product. For forex and EMBasket, trading opens on Sundays between 5:00 PM ET and 5:15 PM ET and closes on Fridays around 4:55 PM ET.
Maximum Contract Size
The maximum number of contracts per click (trade) for the EMBasket is 200.
Minimum Pip Cost (Value)
EMBasket has a minimum value of $1 per point (Your per point value may be different if your account is denominated in a different currency. Please refer to the Simple Dealing Rates Window in Trading Station for this value). The pip/point location is shown below.
The EMBasket does have financing cost (Rollover). The Rollover is taken directly from the variable rollover rates of the individual FX components and then multiplied by that components current weighting in the Index. To see today’s rollover rate please view the Dealing Rates in the trading station.
EMBasket has a minimum stop distance of 5 pips.
In the event that one of the individual components of the Basket does not receive a price update for 1 minute, the EMBasket will become temporarily untradeable. This may result in hanging orders on TS2 or Rejected orders on MT4. We recommend trading with caution around Market Open and Close and any other period of low liquidity.