US Stock Baskets
FXCM’s Stock Baskets contain 5 individual stocks relating to a specific sector.
At the time of the Baskets inception, each stock had equal exposure in Dollar terms. The baskets will from that point forward measure the collective performance of each of the 5 correlated components.
FAANG’s original price was $2,000, therefore at inception for each of its 5 components the amount of shares available for $400 is used as a constant weighting.
If today that same amount of shares that were worth $400 is now worth $415, that stocks contribution to FXCM’s FAANG price will be 415.
The contribution of each of the 5 stocks will formulate the current rate of a Stock Basket.
Margin Requirements are updated daily during the market break.
Most Stock Baskets are leveraged at approximately 20:1 and the new margin requirement will be the equivalent of approximately 5% of the notional value of 1 contract
For E.G if the FAANG rate is 2000.00 during the market break, the Margin Requirement for one contract will be updated to $100.00 USD
Note: CANNABIS currently requires approximately 15% and ESPORTS requires approximately 10%.
Please click here for trading hours.
Please note, however, that hours are subject to change based on Daylight Savings Time. Also, FXCM’s Stock Baskets do not expire, but will not be open for trading during holidays in which the reference markets are closed.
Maximum Contract Size
The maximum number of contracts per click (trade) for all Stock Baskets is 200.
Minimum Pip Cost (Value)
Stock Baskets have 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.
Stock Baskets do have financing cost (Rollover).
For more information on financing costs, please refer to:
Dividends and Withholdings
Dividend adjustments will apply on the eve of the ex-dividend date of the constituent members of the relevant Basket. The adjustment will appear on your statement and the amount of the adjustment per contract can be seen in the simple dealing rates window of the Trading Station platform in the day prior to the debit/credit.
As per Section 871 of the US tax code. A 30% tax applies on dividend adjustments to traders of equity derivatives of US stocks. In accordance with FXCM’s obligation under this US tax regulation, 30% of all Dividend credits are withheld and passed on by FXCM to the IRS.
When your account is debited, you are debited the full amount. However FXCM subsequently pass on 30% of that debit to the IRS.
In the event that one of the individual components of a Basket does not receive a price update for 1 minute, the Basket will become temporarily untradeable. This may result in hanging orders on TS2 or Rejected orders on MT4. We recommend trading with caution around any period of low liquidity.