Tuesday 21st May 2013 08:41 AM
IMPORTANT: Did you know that you have options to consider regarding the way a forex broker executes your trades? These options could mean the difference between:
Being profitable or not
Being allowed to scalp or not
Being allowed to trade the news or not
Learn about "No Dealing Desk" and how other brokers can work against you - click here
FXCM utilises a "lot-based" trading system. This simply means that all FXCM products are aggregated into standardized trade sizes. These sizes generally replicate the underlying reference instrument (the futures or cash instrument) or are a fraction of that figure. This simplifies trading by allowing clients to trade in lot increments, and also provides a price for each lot size rather than averaging open and close prices when multiple positions are taken in the same instrument. The lot size for all indices is in fact one contract (i.e., 1 US 30, 1 UK 100, etc). However, in order to effectively reflect the movement and profit/loss implications of their underlying futures, FXCM has established a minimum/incremental trade size as detailed on page 3.
No deficit balances on your account. It is FXCM's policy to credit accounts to a zero balance when deficit balances occur as a result of trading.
All open positions at 5 p.m. (New York time) are rolled forward to the next trading day. If you hold a long (buy) position then you will be charged financing (LIBOR +3%) to roll the position, and if you are short you may receive financing (LIBOR -3%). For further details, please review our product guide here. Please note that the Roll S and Roll B displayed in the dealing rates are the costs per contract. Since such is the case, the client will pay or earn whatever the charge is, multiplied by the size of the position the client is holding.
EXAMPLE: Client is long 10 US 30. Current Roll B is -$0.88 (as displayed in the dealing rates window). Assuming the client is a holder of this position through 5 p.m. (New York time), they will be assessed a charge of $8.80 for that particular trading day.