CFD Guide

Contracts For Difference

RISK WARNING

Leveraged contracts for difference (CFD) and foreign exchange (forex) trading carries a high degree of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade CFDs and/or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with CFD and forex trading, and seek advice from an independent financial advisor if you have any doubts.

Circle Markets CFD products are not offered in any way in connection with, or with the endorsement of the relevant underlying exchange. The use of the word futures contract and relevant exchange by Circle Markets. is simply in order to indicate the characteristics of the product on offer and the characteristics of the service.

A contract for difference (“CFD”) allows you to potentially profit or loss from the fluctuations in the price of the underlying instrument. The price of a CFD is based on the price of the underlying instrument and is not traded on an exchange, despite the status, or location of the underlying instrument. Therefore, CFD’s are an over-the-counter (OTC) product.

Please note that commensurate with the opening/closing of the market for the underlying instrument, traders may experience gaps in market prices. Due to the volatility expressed during these time periods, trading at the open or at the close can involve additional risk and must be factored into any trading decision. These time periods are specifically mentioned because they are associated with the lowest levels of market liquidity and can be followed by significant movements in prices for both the CFD, and the underlying instrument.

There is a substantial risk that stop-loss orders, left to protect open positions held overnight, may be executed at levels significantly worse than their specified price.

CFD INDICES

NSTRUMENTSNAMEMIN TICKET SIZE – LOTSMAX TICKET SIZE – LOTSTRADING STEPSTICK SIZETICKET VALUEMARGIN NEEDED
GER_30Germany 30 Cash Index110010.01EUR 0.010.01
FRA_40France 40 Cash Index110010.01EUR 0.010.01
ESP_35Spain 35 Cash Index110010.01EUR 0.010.01
GBR_100UK 100 Cash Index110010.01GBP 0.010.01
AUS_200Australia 200 Cash Index1010010.1AUD 0.10.01
JPN225JPN22510100101JPY 100.01
EUR_50Euro 50 Cash Index10100100.1EUR 0.10.01
NAS100NAS10010100100.1USD 0.10.01
SPX500SPX50010100100.1USD 0.10.01
US30US3010100100.5USD 0.10.01

1. TRADING HOURS

Circle Markets Index trading hours are based on when their underlying reference markets are open or the times, liquidity-providing partners are streaming prices. Circle Markets. indices will not be open for trading during holidays in which the reference markets are closed. You may also note that some indices have an intraday break in addition to a daily closing. You will not be able to adjust or close existing positions or open new positions. All trading functionalities will cease upon the end of week closing.

2. CONTRACT/TRADE SIZE

Circle Markets utilizes a lot based trading system. Therefore, you are only able to trade in the ‘Minimum Ticket Size’ or multiples thereof. Whenever a trade is opened, a tick or pip value is associated with each lot to provide precise profit and loss calculations in real time. The tick Value associated with each instrument is automatically converted to the currency of your account.

3. TICK VALUE

As profit and loss is converted into the account currency, a Tick Value is associated with each product. For example, if the trading account is dominated in USD, then all of the profit and loss will be calculated in USD. If a client traded in the GBR_100, which is priced in GBP, Circle Markets. will automatically convert profit and loss into USD. The Tick Value details the conversion rate, which, in this example, would be the GBP/USD exchange rate.

4. MINIMUM MARGIN REQUIREMENTS (MMR)

Circle Markets Margin Rates are displayed in the table above and all indices are set to a margin of 1% of the contract value. The margins detailed are Circle Markets Ltd. default margin requirements.

5. FINANCING COSTS

Cost of carry and dividends make up the overnight credits/debits. The value of these two variables is independent of one another. The overall credit/debt that is applied to your account will depend on the size of the open trade.

5.1 FINANCE CHARGES

Interest rates are a factor in any market. Circle Markets daily interest debit or credit amounts (hereafter “rollover”) are based on the total face value of the position. Index positions that are open at the close of business on Friday will incur 3-day rollover.

6. CASH INDEX CONTRACT EXPIRATION

All cash index positions will remain open until they are closed by the client or the position is liquidated due to insufficient margin. There is no expiration for these contracts.

7. CORPORATE ACTIONS ON INDICES

When a Corporate Action (CA) takes place from an individual stock which is constituent of a stock index, Circle Markets will book an adjustment to your account to reflect the effect this corporate action has on the stock index. If an individual stock goes ex-dividend, long positions will be credited and short positions will be debited with a cash adjustment for positions held in the relevant index at rollover. Long positions and short positions will be adjusted by using 100% of the relevant stock-index-adjustment.

The adjustments will be made on a timely basis, however, as we are dependent upon notification from an external third party, Circle Markets shall not be liable for the consequences of any delayed adjustments.

ENERGY CFDs

INSTRUMENTSNAMEMIN TICKET SIZE – LOTSMAX TICKET SIZE – LOTSTRADING STEPSTICK SIZETICKET VALUEMARGIN NEEDED
CL_BRENTCrude Oil Brent Cash110010.1USD 0.10.01
USOILWest Texas Intermediate Crude Oil cash1010010.01USD 0.10.01
NGASNGAS110010.001USD 0.10.01

1. TRADING HOURS

Circle Markets index trading hours are based on when their underlying reference markets are open or the times, liquidity-providing partners are streaming prices. Energy products will not be open for trading during holidays in which the reference market is closed. Similar to many indices, Energy products have a daily break in addition to a daily closing. You will not be able to adjust or close existing positions or open new positions. All trading functionalities will cease upon the weekend closing.

2. CONTRACT SIZE/TRADE SIZE

Circle Markets utilizes a ‘lot-based’ trading system. This means that all Circle Markets products are aggregated into standardized trade sizes. 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. A tick or pip value is associated with each lot for precise calculations, and profits and losses on a position are automatically converted into the currency of the particular account.

3. TICK VALUE

Pip cost is determined in the same manner as it is done for the various indices offered. Please refer to page 6 for the detailed explanation.

4. MINIMUM MARGIN REQUIREMENTS (MMR)

Circle Markets Margin Rates have displayed in the table above and all indices are set to a margin of 1% of the contract value. The margins detailed are Circle Markets default margin requirements.

5. OVERNIGHT CREDITS/DEBITS

Overnight (rollover) cost will be charged or credited as mentioned in the symbols details available through your MT4 platform.

6. EXPIRATION AND CONTRACT ROLLOVER FEE

Energy products (NGAS, USOIL) have a monthly expiration (please see the table below). Clients that hold an open position on the

‘Circle Markets Expiration’ will be debited or credited by the price difference from the closed contract to the newly opened contract along with a 20% contract rollover fee. Circle Markets Ltd. official monthly expirations are based on the market close of the expiration date.

SymbolExpiration
US Oil19-Apr-18
NGas25-Apr-18
US Oil21-May-18
NGas28-May-18
US Oil19-Jun-18
NGas26-Jun-18

METAL CFDs

INSTRUMENTSNAMEMIN TICKET SIZE – LOTSMAX TICKET SIZE – LOTSTRADING STEPSTICK SIZETICKET VALUEMARGIN NEEDED
CopperCopper110010.001USD 0.100.01
XAGUSDXAGUSD110010.01USD 50.01
XAUUSDXAUUSD110010.01USD 10.01
XPTUSDXPTUSD110010.01USD 0.010.01

1. TRADING HOURS

Metal trading is available to trade 23 hours per day. During these hours you are able to set pending orders, to open and close trades and to adjust price levels. When the market is closed you will not be able to take any action on positions or pending orders

2. METAL PRICING

It is our aspiration to provide you with very competitive transaction costs—tight bid/ask spreads on every metal product.

3. CONTRACT SIZE/TRADE SIZE

Circle Markets utilizes a ‘lot-based’ trading system. This means that all Circle Markets products are aggregated into standardized trade sizes. 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. A tick or pip value is associated with each lot for precise calculations, and profits and losses on a position are automatically converted into the currency of the particular account.

4. TICK VALUE

Tick value is determined in the same manner as it is done for the various indices offered.

5. MINIMUM MARGIN REQUIREMENTS (MMR)

Circle Markets Margin Rates have displayed in the table above and all indices are set to a margin of 1% of the contract value. The margins detailed are Circle Markets default margin requirements.

6. OVERNIGHT ROLLOVER

All open metal positions are rolled automatically to the next trading day. Depending on whether you are long (buy) or short (sell) you could either be debited or credited rollover interest on a daily basis. You can find details of Circle Markets rollover rates (rolls) on the Trading Station or on our homepage in a transparent manner. Please note that all open positions at the close of business on Wednesday incur a 3-day rollover debit/credit, and bank holidays will affect the number of days that a position is rolled forward.

7. EXPIRATION AND CONTRACT ROLLOVER FEE

Copper is the only metal to have an expiration. All other metal trades will remain open until such time the client closes the position or there is insufficient margin to support the open position. For Copper, the open position will be rolled by Circle Markets and the client will be debited or credited by the price difference between the old and the new contract along with a 20% contract rollover fee.

INSTRUMENTENAMEMINITICKETGRÖSSE - LOSMAX TICKETGRÖSSE - LOSTRADING-SCHRITTETick ​​GrößeTICKETWERTMARGE ERFORDERLICH
BTCUSDBitcoin gegen USD110010.01USD 10.1
BTCEURBitcoin gegen EUR110010.01USD 0.010.1
ETHUSDEthereum gegen USD110010.01USD 0.010.1

CRYPTOCURRENCIES

INSTRUMENTSNAMEMIN TICKET SIZE – LOTSMAX TICKET SIZE – LOTSTRADING STEPSTICK SIZETICKET VAULEMARGIN NEEDED
BTCUSDBitcoin vs. USD110010.01USD 10.1
BTCEURBitcoin vs. EUR110010.01USD 0.010.1
ETHUSDEthereum vs. USD110010.01USD 0.010.1

1. TRADING HOURS

Circle Markets Cryptocurrencies trading hours are based on when their underlying reference markets are open or the times, liquidity-providing partners are streaming prices. Circle Markets. Cryptocurrencies will not be open for trading during weekends. You will not be able to adjust or close existing positions or open new positions. All trading functionalities will cease upon the end of week closing.

2. CONTRACT SIZE/TRADE SIZE

Circle Markets. utilizes a ‘lot-based’ trading system. This means that all Circle Markets. products are aggregated into standardized trade sizes. 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. A tick or pip value is associated with each lot for precise calculations, and profits and losses on a position are automatically converted into the currency of the particular account. Please note, that due to the different price notation the minimum ticket sizes and the trading steps may vary. For the products quoted in US cents the minimum ticket size is 1 and you can just trade multiples of one, while for the rest it is 0.01.

3. TICK VALUE

Pip cost is determined in the same manner as it is done for the various indices offered.

4. MINIMUM MARGIN REQUIREMENTS (MMR).

Circle Markets. Margin Rates are displayed in the table above and all Cryptocurrencies are set to a margin of 10% of the contract value. The margins detailed are Circle Markets. default margin requirements.

5. OVERNIGHT ROLLOVER

All open positions in Commodity CFDs are rolled to the next trading day. Depending on whether you are long (buy) or short (sell) you will either be debited or credited rollover interest on a daily basis. You can find details of Circle Markets. rollover rates (rolls) on the Trading Station or on our homepage in a transparent manner. Please note that all open positions at the close of business on Friday at 17.00 EST incur a 3-day rollover debit/credit, and bank holidays will affect the number of days that a position is rolled forward.