FAQs: Trading with FX Solutions
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 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 forex or CFD 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 currency trading account at 17:00 Eastern Time. If they are short (have sold) the higher yielding currency, their account will be debited.
Q: How are Forex and CFD prices determined?
A:
Forex and CFD prices fluctuate with economic, social and political events. Interest rate changes, inflation, political instability, and other events may create forex news. FX Solutions leverages its proprietary interbank market price feed for price discovery and risk exposure. Our price feed uses algorithms to respond to changes in the marketplace within milliseconds, allowing us to maintain fixed spreads so our forex day trading and CFD clients know the transaction costs they will be paying at all times during normal market conditions.
Q: Can I trade Forex or CFDs over the phone?
A:
FX Solutions customers may place foreign exchange or CFD trades by phone. However, please note that the GTS platforms are designed for rapid, efficient global trading online, and phone dealing should be used only in case of internet outages.