CFDs and Trading Fundamentals

Updated 1 week Ago

1. What is a Contract for Difference (CFD)?

A CFD (Contract for Difference) is a derivative product that allows you to trade the price movements of assets or indices on local and international markets. Features include:

Leverage: Open positions with only a fraction of the asset value, magnifying potential profits and losses.
Two-way trading: Go long (buy) or short (sell) to profit from rising or falling prices.
No ownership required: You can trade without holding the underlying asset.

Tradeable assets include forex, stocks, indices, precious metals, commodities, and cryptocurrencies. CFDs have no fixed expiry and can be held short- or long-term.

2. Forex Market Trading Hours

The forex market operates 24 hours a day, 5 days a week. Opening hours vary by region.

3. Swap and Overnight Interest

Swap is calculated based on interest differences between old and new contracts and is reflected in account records.
Overnight interest applies to open positions and can be positive or negative, depending on interest rate differentials.
Charged at server time 00:00 (New York time 17:00).

4. Bid, Ask, and Spread

Bid: Price to buy
Ask: Price to sell
Spread: Difference between buy and sell prices

5. Demo and Live Accounts

Demo Account: Uses virtual funds, ideal for practice and strategy testing.
Live Account: Trades with real funds.

Demo accounts expire after 90 days of inactivity. Initial funds can be adjusted via customer support.

6. Micro Lot Trading and Maximum Lot Size

All MT4 and MT5 accounts support micro lot trading.
Maximum lot size varies by product; please check the lot size specifications.

7. Margin Call and Stop-Out

Margin at 100%: Notification email is sent.
Margin at 50%: Automatic closure begins with the largest loss position.

8. Leverage Information

Leverage is visible by hovering over the account in the platform navigation panel. You can request leverage changes via the client portal.

9. Automated Trading (EA) and VPS Service

EA: Enables automated trading with up to 5,000 actions per 24 hours, including open, close, pending orders, and modifications.
VPS: Provides low-latency, stable environment for automated trading.

10. Tradeable Products

Via MT4/MT5, CFDs include forex, stocks, indices, precious metals, commodities, cryptocurrencies, and bonds.