Forex Trading Conditions
Target Bid/Ask Spreads
Our target bid/ask spreads listed are our best possible target spreads used in normal market conditions. In quiet market conditions, the spread may be even narrower but in periods of volatile markets, the spread may be increased and auto-execution disabled. For certain categories of clients, the spreads may in general be wider by up to 2 pips. The spreads applicable to your account will be displayed in your GoBulling Pro . Please consult GoBulling to obtain further information about our spread range and its implications to your account.
Margin Requirements
Forex is traded on margin, enabling you to leverage a small margin deposit for a much greater market effect where:
- First USD 25K margin rates apply to the first USD 25,000 (or equivalent) of your investment collateral
- Normal margin rates apply to all investment collateral over USD 25,000 (or equivalent)
Auto-executed Trades
Major currency trades can be auto-executed for amounts below the auto-execution limit. Auto-executed trades are automatically accepted. For trade sizes over the auto-execute limit and in volatile market conditions, the trade must first be approved by a dealer. This process normally takes just a few seconds.
Note: These are typical auto-execute limits that can change over the day, depending on market conditions and available liquidity.
Ticket Fees
For Forex trades below the Ticket Fee Threshold listed, a small ticket fee of USD 10 is added to the trade to cover administration costs.
Margin Calls
You must maintain the margins listed in your account at all times. If the funds in your account fall below this margin, you will be subject to a margin call to either deposit more funds to cover your positions or close positions – normally you will be notified through our trading platform and via email. If your margin situation is not remedied, we may close positions on your behalf.
Forex Trading Hours
Your GoBulling trading account is open for Forex trading from Monday 05:00 Sydney local time to Friday 17:00 New York local time.
SWAP RATES
Swap Rates: Forex positions held until their Value Date, and Interest on Unrealised Profit/Loss
TOM/NEXT ROLLOVER:Time of roll-over:
- Open Spot Forex positions held at the end of a Trading Day at 17:00 New York local time will be rolled over to a new Value Date on a Tom/Next basis immediately after the change of trading day, approximately at 03:00 CET*.
*Currencies subject to special market conditions will be rolled over to a new Value Date on a Tom/Next basis approximately at 10:00 CET.
The Tom/Next credit/debit:
- As part of the Tom/Next rollover operation, FX positions are subject to a swap charge or credit. The calculated swap charge or credit are referred to as “Swap Point” and are added to/deducted from each FX position’s original traded rate.
The Swap Points are calculated as follows:
- A proprietary Tom/Next swap rate is calculated based on a number of factors, including the interest rate* differential between the traded currencies and a Tom/Next swap feed from a Tier-1 bank. The relevant mark-up/down applicable to the client relationship is subsequently added/subtracted. The final rate is used to adjust the original traded rate.
* = Daily market overnight interest rates are used.
INTEREST ON UNREALISED PROFIT AND LOSS:
Any unrealised profit or loss on the position being rolled is subject to an interest credit or debit.
Calculation of profit or loss:
- The unrealised profit and loss is calculated as the difference between original trade rate (possibly corrected for previous Tom/Next rollovers) and the rate of the traded currency cross at 17:00 New York local time.
* For currencies subject to special market conditions the rate of the traded currency cross at 08:15 CET will be applied.
Applicable rate:
- The rate is calculated based on daily market overnight interest rates (Reuters Contribution feed) plus/minus the mark-up/down applicable to the client relationship. The final rate is used to adjust the original traded rate.
TOTAL TOM/NEXT OVERNIGHT CHARGE:
The total Tom/Next overnight credit/debit is the sum of the two above final rates.