SPREADS & MARGINS - TRADING CONDITIONS

Currency Conversion: when assets are stated in currencies that are not USD, the profit or loss and value of the pips will be changed to US dollars instantaneously.

Interest Rate Differential: The variance in the interest rate between the product being traded and the currency in which the product is being traded.

Market Hours: Trading of all CFD’s is according to the primary assets exchange hours. For a full list of exchange opening hours, click here.

Order Types: It is possible to trade CFD’s in all order types – Market Orders (MKT), Limit Orders (LMT) and Stop Orders (STP). Click here to go to the ECMarkets Glossary for a full list of order type definitions.

Overnight Rollover: All CFD positions remaining open overnight will suffer a charge or obtain a credit aligned with the position size calculated on the ECMarkets financing costs and the variance in the interest rate with regards to the primary product and the currency traded.

Method: (Variance in Interest Rate– Cost of Financing)/36000 x Base Value x Units per Lot x Relevant Exchange Rate.

ECMarkets Cost of Financing is 1.5%. As stocks and commodities bear no interest, rates are derived from the value of the CFD’s currency. An example being the, NASDAQ, which is in dollars, so the rate of interest 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 rate of interest for the euro at 1.0%. The variance in Interest Rates shows the gap between the interest rate of the currency and of the primary product. A greater variance between the two interest rates results in a greater variance between the overnight rollover for long and short positions.

The amount of the position is calculated in units per 1 lot, for example with Crude Oil 10 barrels is the equivalent of 1 lot. Every CFD also has a base value calculated by ECMarkets. In the case that a CFD is priced in a currency other than USD, an exchange rate set by ECMarkets is used to calculate the rollover in USD.

The values for Overnight rollover for an individual CFD are located in the assets window within the trading platform.

Rollover values vary depending on if the position is maintained long or short. The values of Rollover are calculated based on individual lots and the concluding credit or charge of rollover shall be for the cumulative amount of lots maintained within a position.

Example of the Crude Oil CFD Overnight Rollover Calculation:

Example of the FTSE 100 CFD Overnight Rollover Calculation:

 The primary instrument of a CFD has an expiration date. Please be advised that until the precise date of the primary assets expiration, CFD’s are not traded. In its place, CFD’s are rolled over to the next primary Future Price during the last weekend before the exact cessation date; called the expiration rollover. If there were to be a significant price differential between the two Futures, a modification will be Credited or Debited from your account balance depending on the amount of open position in expiring CFD.

The modification will be presented in your account as Rollover Charge and the actual worth of your Equity will not be affected. Conversely, be advised that the exchange amongst the 2 Future prices of the primary CFD may result in a significant price differential. Consequently, Entry Orders may be completed on market rates as opposed to recalculated rates. To not acquire the adjustment in price or any repercussion of the primary CFD rollover, it is possible to close your position and/or cancel Orders prior to the date of the rollover and open a new position afterwards. At its best effort, ECMarkets, will notify clients of any expected expiration of assets by email or Popup via the website.

The future contract on which a CFD is calculated has a date of expiry, with customers having the ability to close their CFD positions until this date. ECMarkets will close positions at the last available price should clients not close their positions by this date. Approx 3 to 5 days prior to expiry, a new CFD calculated on the next future contract will commence trading. No fresh positions will be able to be opened in the previous CFD contracts during this period.

Margin Requirement of ECMarkets:

Every CFD position carries between 2% and 5% margin requirements dependent upon on the particular CFD. The transacted amount of all CFD’s must be covered by monies in the account.

It is necessary to maintain the required margin to have your position remained kept open. If the value of your account falls beneath the margin requirement minimum, a request for extra funds will be made and will need to be exacted.

Margin Calls:

• If the Equity drops beneath 100% of the Used Margin, customers will receive an automated margin call warning when signed in to the ECMarkets website. ECMarkets will contact the client about the contravening Equity below the margin requirements minimum by telephone, sms/text, email, or by pop-up in the ECMarkets website.
• Should the equity fall below or equal 20% of the Used Margin for a client’s account in the aggregate, ECMarkets will dissolve any part of, or all of the Open Positions in a client’s account. Positions will be closed on the premise of best execution prices available to ECMarkets at that particular time.
• When making Stop Loss Orders to reduce losses; clients have full responsibility for their own orders.
• ECMarkets may occasionally and with best efforts, contact a client and ask the client to deposit additional security to protect their commitments. Any request for extra margin will not be considered standard for further calls nor future waivers of liquidation rights by ECMarkets.