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Trading Basics

What is rollover?

Rollover is the interest paid or earned for holding a position overnight. Each currency has an overnight interest rate associated with it, and because…

What happens if I have a position open on the expiration date?

Clients that hold an open position at the time of an FXCM expiration will have their positions closed at our rate during the market break. When a product…

How much default leverage does FXCM offer? When does this change?

  RETAILS CLIENTS Available leverage is determined by ESMA and not by FXCM. FXCM UK offers different leverage for different tradeable instruments. 30:…

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…

How does the Cryptocurrency Daily Margin Update work?

Cryptocurrency Margin Requirements are updated shortly after market open (Sunday 18:00 ET) and then updated daily during the market break (Between 16:…

What is a pip?

The word “PIP” stands for Percentage in Point. In forex, a pip is what you would consider a “point” for calculating profits…

What is usable margin?

Usable Margin: is the amount of account equity that is currently not being used to maintain open positions. Usable Margin should be thought of as two…

Where can I view FXCM's up-to-date margin requirements?

You can view up-to-date margin requirements listed by currency pair in the MMR column of the "Simple Dealing Rates" window within the Trading…

How do I avoid a margin call?

A Margin Call will occur on a trader's account when: Usable Margin is less than 0 When a trader's Equity is less than Used MarginWhen…

Why trade on margin?

Trading on Margin (Trading with Leverage) is a common attraction of the Forex market. It allows you to open trades that are larger than the capital…

What leverage do you recommend?

As a general rule of thumb, we recommend limiting total account leverage to a maximum of 20:1. For example, if you have an account balance of $10,000, you…

Where can I monitor my available margin in Trading Station?

The usable margin column in the accounts window of the Trading Station shows the amount of funds you have remaining in your account to open new positions…

What platform is right for me?

FXCM offers several account types to meet your trading needs including mobile trading, automated trading, or Mac-compatible platforms. You can compare the…

Do rollover rates and policies vary from broker to broker?

Yes. In addition to our policy of transparency in reporting rollover, due to the average notional trading volume that FXCM generates to the liquidity…

Can you provide an example of rollover on a forex pair?

When you buy the EUR/USD pair, you are buying the euro, and selling the U.S. dollar to pay for it. If the euro interest rate is 4.00%, and the U.S. rate…

Why does FXCM encourage lower leverage?

When you use excessive leverage, a few losing trades can quickly offset many winning trades. To clearly see how this can happen, consider the following…

Why did my trade open/close?

At the top of your trading platform click on the Report button to view your Combined Account Statement. On the statement the “Condition column…

How do orders execute over the weekend?

If the requested price of a stop or stop entry order is reached at the open of the market on Sunday, the order will be filled at the next available price…

What is slippage and why does it happen?

Slippage is a factor when trading any financial market. Slippage occurs when the market gaps over prices or because available liquidity at a given price…