Trading Information

At NFXMarkets, registered traders have access to a variety of stocks. For your convenience, we have provided definitions of commonly used trading terms.

Leverage

Leverage allows you to open a much larger position than the amount of capital you have in your account. At NFXMarkets, you can trade positions with up to 1: 400 leverage, or 0.25% margin. This leverage is expressly reserved for professional clients. Given the margin requirements, you can effectively use $250 initial margin to trade contracts up to $100,000 in value. As a retail client, you can trade positions with leverage of 1:30. This means that a $100 margin allows you to trade contracts valued at $3,000.

Spreads

At NFXMarkets, all traders have the added advantage of fixed spreads. This means you can trade the small commissions that brokers take on all new positions.

It’s easy to calculate the spread: Simply subtract the difference between the Ask Price and the Bid Price.

The Ask Price is determined by the broker. It’s the price the broker is prepared to sell the Base Currency (the first currency in the pair), in exchange for the Counter Currency (the second currency in the pair).

The Bid Price is determined by the market. It’s the price buyers are prepared to pay to purchase the Base Currency in exchange for the Counter Currency.

Rollover

A Rollover is the term used to describe holding a trade from the close of trade on one day until the next day, and the fees involved. NFXMarkets charges clients the industry-standard fee for rollovers, otherwise known as overnight swaps. These apply to trades that are left open past 00:00 GMT.

Rollovers Explained:

When you roll a financial position from one trading day to the next trading day, you may incur interest rate charges that must be paid, or you may be the recipient of interest-rate receipts on those positions. Every single forex pair features a unique interest-rate, which you the trader will either Pay or Receive if the position is left open overnight.

Rollover Example:

If you’re trading the GBP/USD currency pair, and the interest rate on the GBP is 0.08%; and the interest rate on the USD is 3.00%, the following applies:

Note that the British pound is the main currency in the pair. It is known as the base currency. The interest rate of the base currency is lower than that of the counter currency – the US dollar.

If you buy the GBP, you’ll be charged the rollover, and if you sell the GBP, you will receive the rollover fee of 0.08%.

Rollover Schedule & Fees:

  • Sunday Night – Monday: Regular Rollover
  • Monday Night – Tuesday: Regular Rollover
  • Tuesday Night – Wednesday: Regular Rollover
  • Wednesday Night – Thursday: Rollover fees are charged for three days of rollover interest (Wednesday, Friday, and Saturday)
  • Thursday Night – Friday: Regular Rollover applies
  • Friday Night: No Overnight Fees Incurred
  • Saturday Night: No Overnight Fees Incurred

Slippage

Trades don’t always execute at the prices we expect. Slippage occurs in online trading when there is a difference between the expected price of the trade, and the actual price at which it is executed. Slippage typically occurs when markets are volatile. If slippage takes place, it is normally between trading sessions, or once the market opens.

Trading Times

Trading times may change if markets have low levels of liquidity, during holidays, or after trading hours.

For holiday trading hours, please click here.

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