FAQs: CFD Trading
Q: What are CFDs?
A:
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 and trading examples.
Q: What CFD instruments are offered through FX Solutions?
A:
FX Solutions offers 11 CFD instruments for online CFD trading.
For a full list, visit our CFD Trading Global Markets page.
Q: What are the CFD Spreads and Charges?
A:
FX Solutions offers fixed tight spreads and 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 opened anytime during a given 24-hour period and closed by the close of the trading day (17:00 Eastern Time). An overnight position is a position which stays open past the end of normal trading hours (17:00 Eastern Time). FX Solutions automatically rolls overnight positions at competitive rates to the next day's price.
Q: What happens to my open positions at the end of the trading day?
A:
Trades held open at the end of the trading day (17:00 Eastern Time) remain open but are subject to a daily "cost-of-carry" adjustment as per standard interbank market protocol. The adjustment is based on the interest rate differential between the two currencies in the pair being traded and on the movement of spot value dates.
A trader who is long (has bought) the currency 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 currency, their account will be debited.