FXCM offers over a dozen stock indices allowing traders to trade their opinion of the US, European, Asian, and Australian markets. Up-to-date margin requirements are displayed in the "Simplified Dealing Rates" window of the Trading Platform by instrument.
Why trade global indices through FXCM?
- No Re-Quotes:1 on all index products, giving you fast, efficient trade execution without expensive re-quotes.
- Competitive Pricing: Competitive spreads enable you to gain exposure to global markets.
- No Commission:2 Trade commission free on all index products at FXCM unlike other markets.
- Generous Leverage:3 Generous leverage on all products that are clearly detailed on the FXCM Trade Station.
- Benefit from Dividends: Hold a long position overnight and receive dividend payments.
- Hedging Capability: You can go long or short in a single index trade.
- No stop and Limit Trading Restrictions: Place stops, limits and entry orders without any minimum distance restrictions for many of our Stock Indices.
Trading Indices on lot based system
FXCM utilises a "lot-based" trading system. This simply means that all FXCM products are aggregated into standardised trade sizes. These sizes generally replicate the underlying reference instrument (the futures or cash instrument) or are a fraction of that figure. This simplifies trading by allowing clients to trade in lot increments, and also provides a price for each lot size rather than averaging open and close prices when multiple positions are taken in the same instrument.
The lot size for all indices is in fact one contract (i.e., 1 US 30, 1 UK 100, etc). However, in order to effectively reflect the movement and profit/loss implications of their underlying futures, FXCM has established a minimum/incremental trade size as detailed on page 3.
All open positions at 5 p.m. (New York time) are rolled forward to the next trading day. If you hold a long (buy) position then you will be charged financing (LIBOR +3%) to roll the position, and if you are short you may receive financing (LIBOR -3%). For further details, please review our product guide here.
Please note that the Roll S and Roll B displayed in the dealing rates are the costs per contract. Since such is the case, the client will pay or earn whatever the charge is, multiplied by the size of the position the client is holding.
Client is long 10 US 30. Current Roll B is -$0.88 (as displayed in the dealing rates window). Assuming the client is a holder of this position through 5 p.m. (New York time), they will be assessed a charge of $8.80 for that particular trading day.