CFD Trading Conditions

• Order Types: All order types can be used for CFDs.
   
• Market Hours: CFDs are traded based on the exchange hours of the underlying instrument. For details refer to the specific instrument.
   
• Spreads: CFD spreads are based on exchange spreads of the underlying instrument. Spreads are variable and may change according to market conditions.
   
• Currency Conversion:For all instruments not originally quoted in U.S. dollars, profit or loss (P/L) and pip value will be converted immediately and online to U.S. dollars. For example, a profit of 20.0 points from trading 100 lots of the DAX30 will immediately be converted into U.S. dollars, according to the present EUR/USD rate.
• Interest Rate Differential is the difference in the interest rate between the product being traded and the currency in which the product is denominated.

• Overnight Rollover:Any CFD positions left open overnight will be charged or credited against the size of the position. Rates are based on the Markets Financing Charge set by Finexo and the Interest Rate Differential between the underlying product and the currency in which it is traded.

  Please Note: the MT4 platform calculates overnight rollover at 21:00 GMT and the rollover charge/credit is debited or credited to and from the trading account. On Wednesday at 21:00 GMT, overnight rollover fees are multiplied by three (x3) in order to compensate for the upcoming weekend.

• Interest Rate Differential is the difference in the interest rate between the product one is trading and the currency in which the product is denominated.

How to calculate overnight rollover

• Formula: (Interest Rate Differential – Financing Charge)/36000 x Base Value x Units per Lot x Relevant Exchange Rate.

Finexo’s Markets Financing Charge is 1.5%. As commodities and stocks bear no interest, rates are derived from the denomination of the CFD’s currency. For example, NASDAQ is denominated in dollars, so the interest rate is set by the US Federal Reserve. The interest rate of a particular currency is set by that country’s central bank. Presently, the European Central Bank has set the interest rate for the euro at 1.0%. Interest Rate Differential represents the gap between the interest rate of the currency and of the underlying product. A greater difference between the two interest rates results in a greater difference between the overnight rollover for long and short positions.

The size of the position is measured in units per 1 lot, e.g. 10 barrels = 1 lot of Crude Oil. Each CFD also has a base value determined by Finexo. In the case that a CFD is priced in a currency other than USD, an exchange rate determined by Finexo is used to calculate the rollover in USD.

Overnight rollover values for a particular CFD can be found in the instruments window on the trading platform.

Rollover values vary depending on whether the position held is short or long. Rollover values are calculated based on individual lots and the final rollover charge or credit will be for the total amount of lots held in a position.

Example of the Crude Oil CFD Overnight Rollover Calculation:

Crude Oil Base Value is $77.40.
U.S. Federal Reserve Interest rate: 0.25%
Finexo Financing Charge: 1.5%

The CFD Overnight Rollover Formula:
(Interest Rate Differential – Financing Charge)/36000 x Base Value x Units per Lot x Relevant Exchange Rate.

A short position of 1 Lot (10 barrels) in the Crude Oil CFD will be charged -$0.03 overnight, based on the following calculation:

0.25% - 1.5% = -1.25%
-1.25%/36000 x $77.40 * 10 = -$0.03

Thus a short position of 10 lots in Crude Oil would be charged -$0.30 overnight:
10 x -$0.03 = - $0.30.

Example of the FTSE 100 CFD Overnight Rollover Calculation:

FTSE 100 Base Value is £4970.
Bank of England Interest rate: 0.50%
Finexo Financing Charge: 1.5%
GBPUSD Exchange Rate: 1.6320

The CFD Overnight Rollover Formula:
(Interest Rate Differential – Financing Charge)/36000 x Base Value x Units per Lot x Relevant Exchange Rate.

A long position of 1 Lot (1unit) in the FTSE 100 CFD will be charged -$0.45 overnight, based on the following calculation:

- 0.50% - 1.5% = -2.0%
-2.0%/36000 x £4970 x 1 x 1.6320 = -$0.45

A short position of 1 Lot (1 unit) in the FTSE 100 CFD will be charged -$0.23 overnight, based on the following calculation:

0.50% - 1.5% = -1.0%
-1.0%/36000 x £4970 x 1 x 1.6320 = -$0.23

A short position of 20 lots in the FTSE 100 would be charged -$4.60 overnight: 20 x -$0.23 = - $4.60.

Expiration of a CFD on the MT4 platform: The future contract on which a CFD is based has an expiration date, and clients will be able to close their CFD positions until this date. Positions not closed by clients by this date will be closed by Finexo at the last available price. Approximately 3-5 days before expiring, a new CFD based on the next future contract will begin trading. During this period, no new positions can be opened in the old CFD contract.

Margin Requirement: All CFD positions carry margin requirements between 2% and 5% (depending on the individual CFD). The transaction amount of each CFD must be guaranteed by funds in your account.

It is necessary to maintain the required margin in order to keep your position open. If the equity value of your account drops below the minimum margin requirement, you must add additional funds.

Margin Calls:

• If the equity at any time equals or falls below 100% of the Used Margin customers logged in to the trading platform will receive an automatic margin call notification. Finexo will do its best to notify the customer about this drop below minimum margin requirements by phone, email, SMS or popup within trading platform.
• Finexo will liquidate any part of or all of the open positions in an account if the total equity equals or falls below 20% or the Used Margin. Positions will be closed based on best execution prices available to FInexo at that time.
• Stop Loss Orders, used to guard against losses, are the customer’s responsibility.
• In the interests of the customer, Finexo may request a deposit of additional funds to secure the customer’s contracts. This call for additional margin does not preclude the future call or future waiver of liquidation rates by Finexo.