Spliced futures, what’s the difference?
FX24 uses splicing for futures CFDs. The main feature of spliced futures is that it doesn’t specify a month, as a result, after each expiration, when the liquidity period ends, the contract won’t be renamed and and price feed won’t be changed to the new contract, which is very convenient for trading and analysing quotes. We recommend you to take this feature into account, since the quoted futures prices may differ from the quotes of futures contracts in certain periods.
Why is commission charged for trades with CFD?
The broker’s income from operations with CFD is formed either based on the commission, or by expanding the spread. FX24 uses the first option, giving its clients the opportunity to trade with the tightest spreads.
In which currency are CFDs expressed?
CFD is expressed in the currency of the relevant country. For example, CFD on AUS200 is expressed in Australian dollars. Profits or losses, as well as margin, are automatically converted into the deposit currency (US dollars) at the current exchange rate.
Do CFDs have expiration dates and if they do, what are they?
The expiration date for CFDs on commodities, indices and bonds, coincides with the expiry date of the relevant futures. For example, a contract for Brent crude oil for delivery in April 2018 expires on 9 March 2018. Expiration time is 00:00 EET. However, FX24 offers so called “spliced” futures, which means that clients’ trades won’t be closed automatically on the day of expiration, allowing clients to successfully hold long -term positions.
How is margin for a specific CFD position calculated?
You have to multiply the volume of this position by the size of the contract, then multiply the result by the current market price, then by the percentage of margin. For example, if you sell 1 lot of TNOTE at 126.91, the margin will be: (1 (lot) x 1000 (contract size) x 126.91 (asset price)) x 1% (margin deposit) = 1269.10 US dollars.
How is trading profit calculated?
You have to subtract the opening price from the closing price of the position, multiply it by the number of lots and the size of the contract and subtract commission. For example, purchasing 3 lots of Brent (UKOIL) oil at 122.50 and selling at 124.00, your trading profit will be calculated фs follows: (124.00 (closing price) – 122.50 (opening price) x 3 (lot) x 1000 (contract size) – $ 30 (commission) = $ 4,470.
In order to calculate your profit on trades with Bitcoin (BTCUSD), you have to subtract the opening price from the closing price of the trade, then multiply it by the number of lots and the size of the contract minus commission. For example, if you bought 0.5 lot of Bitcoin at $ 7000 and sold at $ 9350 with 1% commission, your profit will amount to: ($ 9350 (closing price) – $ 7000 (opening price)) x 0.5 (lot) x 1 (contract size) – $ 35 (commission) = $ 1140.
What are CFDs based on?
CFDs on indices offered by FX24, are based on corresponding stock indices, CFD Commodities – on futures for relevant commodities: oil, gas, metals, cotton, etc.; Cryptocurrencies CFDs – on corresponding cryptocurrencies; Bond CFDs – on stock exchanges.
Why is it profitable to trade CFDs with FX24?
- Absence of swaps.
- More than 200 different contracts for differences: indices, bonds, metals, commodities, stocks, cryptocurrencies, investment portfolios in MetaTrader 4 and SIRIX.
- Low commissions. Futures contracts expiration without forced closure of positions.