FAQs: CFD Trading
Q: What are CFDs?
A:
Contract for Difference (CFD) is an over-the-counter trading instrument that allows trading on markets such as indices and commodities. Visit the CFD Trading section of our Website for more information & trading examples.
Q: What CFD instruments are offered through FX Solutions?
Q: What are the CFD Spreads and Charges?
A:
FX Solutions offers fixed tight spreads & highly competitive charges. Please visit the CFD Spreads & Charges page.
Q: What is the difference between an "intraday" and "overnight" position?
A:
Intraday positions are positions that have been opened at some time during a particular 24-hour period, and then closed by the close of that trading day (at 17:00 Eastern Time). An overnight position is one that stays open past the end of normal trading hours (17:00 Eastern Time). FX Solutions automatically rolls clients' overnight positions over to the next day's price, at competitive rates.
Q: What happens to my open positions at the end of the trading day?
A:
Trades that are held open at the end of the trading day (17:00 Eastern Time) do remain open, but they are subject to a daily "cost-of-carry" adjustment as per standard interbank market protocol. This adjustment is calculated from the interest rate differential between the two currencies in the trade, and on the movement of spot value dates.
A trader who is long (has bought) the instrument bearing the higher interest rate will generally receive a credit to their account at 17:00 Eastern Time. If they are short (have sold) the higher yielding instrument, their account will be debited.