Swap rate is an interest paid or earned for holding a position overnight. In currency trading, swap rate is determined by the direction of your trade (short or long) and the overnight interest rate differential between the two currencies. In Share or Index CFDs trading, holding costs are based on other factors such as the interbank interest rate for the currency of the relevant asset. Positive swaps are only paid on “Buy” positions but a considerable number of instruments have negative swap rates on both “Buy” and “Sell” positions.

Leverage is the mechanism by which you can control a large amount of money using a small Deposit currencies:t. For example, if your trading account has a 1:30 leverage, every 1 currency unit controls 30 units in the market. Assuming that you have $1000 in your account, 1:30 leverage would allow you to control a $30,000 position, magnifying your exposure and therefore the probability of profits or losses. Fondex enables you to trade with leverage from 1:2 up to 1:30. The level of leverage you may use depends on your trading experience, your balance and the maximum leverage given for the instrument you wish to trade.

Trading volume is the amount of a financial asset that you take on a trade. For example, in Forex, trading volume refers to how many lots or currency units you take on a particular trade. When trading currencies on Fondex cTrader, the minimum trading volume is 0.01 lots or 1000 currency units.

When trading Shares, trading volume or position size is how many shares you buy or sell on a particular trade. In Fondex cTrader, position size is measured either in lots or share units. The minimum trade size for Share CFDs is 1 lot, which equals to 1 share. For more information regarding trading volume, please choose the market you are interested to trade and view the relevant question under the FAQ section.

The spread is the difference between the quoted Bid and Ask price. The Bid price is the price that you sell an instrument for, while the Ask price is the price you buy an instrument at.

Margin is a good faith deposit, a necessary amount of funds that you must maintain to keep your positions open. Margin requirements increase as your trading volume increases, and in order to prevent margin calls, you should regularly monitor your margin and adjust your positions accordingly.

Used Margin is the total amount of account equity used for all your open positions.

Free Margin is the difference between your equity and margin. In simple terms, it is the amount of equity you have available to trade and is not attached to any of your positions. Free margin fluctuates according to your floating profit and loss; when you are profiting and your equity increases, your free margin increases too. When you are losing, your equity decreases and so does your free margin.

Margin Level is a percentage ratio of the available equity versus used margin.

Once your account equity drops below 50% of the required margin, we will notify you with a margin call that you do not have enough funds to keep your positions open. At that point, you may rectify the situation by either depositing additional funds or closing some of your positions.

With regular platforms, if your margin is not enough to maintain your open positions, the position with the largest loss gets automatically closed. On Fondex cTrader, your position gets closed only partially, just as much as it's needed to restore your required margin. In that way, your trading account is protected for as long as possible.

Deposit currencies: EUR, USD, GBP, CHF, RUB, JPY, YEN, AED, BRL, CAD, CZK, MYR, PHP, RON, SAR, SGD, ZAR, THB.