-
What is a CFD (Contract for Difference)?
A CFD (Contract for Difference) is a contract between two parties. One party is described as “buyer” and the other is described as “seller”. The contract stipulates that the seller pays the buyer the difference between the current value of a certain asset and the assets value at the contract time (if it happens that the difference is negative, then the buyer is the one to pay instead of the seller). When you choose to invest in CFDs along with it comes the word “difference” which means that you aren’t buying the physical asset. Instead, you are choosing to take a position on the value of the underlying asset. Contracts for Difference are actually financial derivatives which allow traders to benefit from prices that are moving up (long positions) or moving down (short positions) via a futures contract. Therefore, the differences which occur are made through cash payments, not by delivering physical goods or securities. This actually means that a trader’s profit or loss results from the difference between the price an asset had when you entered a transaction and the price the same asset has when you exit the transaction. For example, if you believe that the price of Euro (EUR) will increase against the US dollar (USD), you will buy Euro and sell USD for a certain price. But at any moment you won’t be the possessor of Euro.
-
What is “Leverage”?
When you trade on leveraged capital you may open a position with a value that is significantly higher that the funds that you have invested, which only serve as the Margin. When trading with Leverage you increase your chances of potential return, but also the potential losses. Basically, when you trade with leverage you can pay less than the full price for a trade. Thus, you can enter larger positions than you could, using only your account funds. Leverage is expressed as a ratio, for example if your leverage is 1:3, this means that you can hold a position that is the triple of the value of your trading account.
-
What is a Margin Call?
If your equity falls under the maintenance margin amount, then Clicktrades can appeal to a Margin Call or can give you a certain grace period so that you have the time to add funds to your account or to close your position. If you didn’t meet the maintenance margin requirement by the end of the time frame or if your account went into negative equity, the position(s) will be closed at the price available on our platform at the specific time.
-
How can a Margin Call be avoided?
To avoid a Margin Call you should check your account’s balance at all times and make sure you have sufficient funds in your account so that you can maintain your open positions.
-
What are Trading Hours or Market Hours?
Trading Hours (Market Hours) are the specific time frame in which a trading instrument can be traded. Each instrument has its own information on the dedicated page, but you can also see the time frames directly on our trading platform. Trading Hours are displayed in GMT (Greenwich Mean Time).
-
Does Clicktrades charge any transaction fees?
No, Clicktrades does not charge any transaction fees or commissions. The broker makes a profit from the difference between the BID and ASK prices, a difference that is called the bid-asked Spread.
-
Can I have a negative balance in my account?
No, you cannot lose more than the amount you have decided to risk on your trades.
-
Does Clicktrades charge an overnight fee?
If you leave a position open overnight, then Clicktrades adds or subtracts a “swap” fee to/from your account. This amount will vary as it is linked to interbank interest rates. You will see the charge at the end of the trading day.
-
Why is it not possible to close my position?
If you wish to close your position you can do so only during the specific instrument’s trading hours. Even more, it might happen that some instruments are unavailable to be traded for a certain time frame, for example when market events put a restriction on price feeds. These events might be: illiquidity, extreme volatility, etc.
-
How can I get more information about the financial situation of my account?
The current state of your trading account is given by the following: Balance: deposits – withdrawals + P&L (profit/loss) of closed positions; Equity: balance + P&L (profit/loss) of open positions.
-
What is the Future Rollover and how does it affect me?
Most of the instruments offered by Clicktrades have a rollover date as they are based on a futures contract. During the last weekend (before the official expiration day) CFDs are rolled over to the next underlying Future Price. This process is known as expiration rollover. When there is a significative price difference between the two Futures, there will be an adjustment made to the balance of your account, which you can see under Rollover Charge and it won’t affect the real value of your Equity. If you do not wish to be affected by CFD rollover, then you must close your position(s) and/or cancel Orders before the rollover date and open a new position after that date.
-
Why do rollover rates triple on Wednesdays?
If you place a trade on the Forex market, you must keep in mind that the actual value date is two days forward. What does that mean? For example, if you do a deal on Thursday it will be for value Monday, if you do a deal on Friday it will be for value Tuesday, etc. Therefore, on Wednesday, to compensate for the following weekend (as rollover isn’t charged then because trading is stopped on weekends) the rollover amount is tripled.
-
How are corporate actions handled?
An action made by a corporation is an event that is initiated by a public company. Usually, such an event (rights issue, stock split, takeover, etc.) can affect the shares/equities issued by the company. Because you don’t own the physical share or equity, you don’t have any rights to it. Still, when a corporate action takes place, we make sure to take every measure in order to minimise the impact on your position(s). Thus, we apply a relevant adjustment to your account.
-
What input do you have on trading robots?
When you use our platform, you can access Trading Central and/or automated trading systems. Although this is the case, we do not encourage you to use Expert Advisors (Robots) as they come with a greater risk and must not be considered a way to trade carefully.
-
What do I do if I cannot log into my account and I want to close an open position?
At Clicktrades you may open or close a position or you may also place an order by phone 24 hours a day. Just give a call to our Dealing Desk or contact the Customer Support Department. Once you call us you will be asked to provide some personal information before we proceed with your request due to security purposes.
-
When does my account become inactive and do any inactivity fees apply?
An inactivity fee of thirty (30) USD or its equivalent in the currency of the trading account will apply if there hasn’t been any trading activity during a period of three (3) months or more.
