Below is the updated leverages as per new ESMA’s guidelines.
||Updated default Leverage
|Major FX pairs (The major currencies are currency pairs comprising any two of the following currencies: USD, EUR, JPY, GBP, CAD or CHF)
|All other currencies
|Major Indices (The major indices are any of the following equity indices: FTSE 100, CAC 40, DAX, DOW, S&P 500, NASDAQ, Nikkei 225, ASX 200, EURO STOXX 50)
|All other indices
|Commodities (other than Gold)
Some examples to better illustrate what the trading conditions mean is provided below.
- Average Spreads are applicable under normal trading conditions. It is possible that during high volatility, news time or outside regular trading hours that the spreads may be increased.
- Swap charges for each instrument can be found in the trading platforms. If you need any further information on how to find them please feel free to contact us.
- Please note that the indicative spreads as shown in the trading platforms are only relevant for top of the book. For ticket size greater than $1m, execution spreads can get significantly widened by two or three times.
- Any commissions or fees are rounded up to the maximum accuracy available by the client’s platform.
- Expiry contracts will not automatically be rolled to the new contracts. Once a contract expires it will be manually closed as per the expiry rate provided by our Liquidity Provider. Please note that the expiry rate in the Liquidity Provider can differ from the expiry rate as shown in the trading platform.
- Accounts created under Fixed Spreads Groups can face rejections when trying to open/close trades in periods when the spread in the market is higher than the fixed spreads they have.
- Swap charges and trading hours for each instrument can be found in the trading platforms. Please note that on certain day swaps charges are triple.If you need any further information on how to find them please feel free to contact us.
- Take profit orders are sent as Fill-or-Kill (FOK) orders, meaning there is a chance not be executed, even when are triggered, due to low liquidly in the market at that rate at that time or due to reaching that rate only for some milliseconds which was not enough to fill the order. Therefore, if the order will not be able to get fully filled when is triggered, then it will be rejected (Fill or Kill).
Assume the commission on EURUSD is $10 per lot and the Roll charge for EURUSD is:
Long= -0.00009 Short=0.00002.
I opened a 50,000 EURUSD short position on Monday and closed it on Wednesday. If 1 lot=100,000 then the commission I paid in total for opening/closing this trade is $5.
Also, for this trade I received $2 as rollovers which are calculated as the trade size multiplied by the roll charge (short in this case) multiplied by the nights the trade is open (50,000*0.00002*2).
Please note that for most Forex, triple swaps are paid on Wednesdays.
For more information, please check the specifications of each instrument in the trading platform
The spreads mentioned in the trading conditions represent the difference between the Bid and the Ask price.
1) Dividends of shares are received/paid via swaps.
Assuming I have an open position on share X, and on a specific date, X would distribute $0.50 as dividend, this amount would be received/paid through swaps on the ex-dividend date.
I have 100 shares of stock X of $500 each share. That stock will distribute $1 dividend per share.
Assuming I have an open buy position, on the ex-dividend date I will receive $100 as swaps.
Assuming I have an open sell position, on the ex-dividend date I will pay $100 as swaps.
2) Profit & Loss
Assuming I have a EUR account with a balance of EUR 10,000.
I open a BUY position of 1 lot EURUSD at 1.18000 and close it at 1.18100. I gain 10 pips.
Therefore my profit is 100,000*0.0010= $100, which is translated in (100/1.1810=) 84.67 euro.
Therefore my new balance will be 10,084.67 euro.
Assuming I have a USD account with a balance of $10,000.
I open a BUY position of 1 lot EURUSD at 1.18000 and close it at 1.17900. I lost 10 pips.
Therefore my loss is 100,000*0.0010=$100.
Therefore my new balance is $9,900.