What Are Trading Conditions?
Understanding the Trading Environment
Trading conditions refer to the terms and factors that apply when opening, maintaining and closing CFD positions.
They can influence trading costs, required margin, market exposure and the financing that may apply to certain positions.
Applicable conditions can vary depending on the account type, instrument and prevailing market environment.
The essentials
Key Trading Conditions
Spreads & Commissions
The costs associated with entering and managing certain CFD positions can include spreads and, where applicable, commissions.
Leverage
Leverage determines the relationship between the margin required for a position and the total market exposure.
Margin
Margin represents the amount of capital required to open and maintain a leveraged position.
Swap Rates
Financing adjustments may apply when certain CFD positions remain open beyond the applicable trading day.
Trading Conditions Can Vary
Different Markets. Different Conditions.
Trading conditions are not necessarily the same across every account, instrument or market environment.
Several factors can influence the conditions that apply to a position.
Account Type
Different account structures may have different applicable trading conditions.
Instrument
Conditions can vary depending on the financial instrument being traded.
Market Liquidity
Changes in available market liquidity can influence pricing and trading conditions.
Market Volatility
Periods of significant price movement can affect market conditions.
Trading Hours
Conditions can vary across trading sessions and periods of lower market activity.
Market Events
Economic announcements and significant global developments can contribute to changing market conditions.
How Trading Conditions Connect
Throughout a Trading Position
Applicable trading costs and margin requirements come into consideration.
Market exposure and available margin continue to affect the position.
Applicable financing may be relevant when certain positions remain open overnight.
The position result reflects market price movement together with applicable trading costs and adjustments.
Why Trading Conditions Matter
Know Before You Trade
Understanding applicable trading conditions can help clients better evaluate the costs, exposure and requirements associated with a CFD position.
Before participating in CFD trading, clients should understand the conditions associated with their account and selected instruments, as well as how changing market conditions may affect their trading activity.
Before you trade
Important Risk Information
CFDs are leveraged products and involve significant risk. Leverage increases market exposure and can magnify both gains and losses.
Trading conditions may vary according to the account, instrument and prevailing market environment. Market conditions can change rapidly, particularly during periods of increased volatility or significant economic events.