Losses can exceed deposits
Contracts for difference let you trade forex based on prices derived from the underlying market. Trade CFDs on over 90 currency pairs – including major, exotic and emerging markets – with spreads starting from just 0.6 pips.
Spreads vary depending on the volatility of the underlying market. We quote our minimum spread whenever possible, when the market is narrow. At other times you’ll generally find our average spread applies.
Bitcoin funding will be 0.0444% daily for short positions and 0.0277 for long positions.
IG policy on blockchain forks
We base the price of our bitcoin and ether contracts on the underlying market, made available to us by the exchanges and market-makers with which we trade.
There is currently one accepted decentralised ledger which records all bitcoin transactions – as well as an equivalent for ether – called the blockchain. When the software of different miners becomes misaligned, a split, or ‘fork’, in the blockchain may occur, resulting in the existence of two different blockchains.
In the past, cryptocurrency users have quickly agreed which version to accept as valid and continue to use, causing minimal disruption. In these instances, the old version of the blockchain has then been discontinued.
In the event that one version isn’t discontinued – known as a hard fork – we will generally follow the blockchain that has the majority consensus of cryptocurrency users, and will therefore use this as the basis for our bitcoin and ether contracts. IG reserves the right to determine which blockchain and cryptocurrency unit has the majority consensus behind them.
When a hard fork occurs, there may be substantial price volatility around the event, and we may suspend trading throughout if we do not have reliable prices from the underlying market.
Our foreign exchange transactions are a special form of cash-settled CFD that provide exposure to changes in exchange rates, but cannot result in the delivery of the underlying currencies.
1. Normal dealing hours for all pairs are from 21.00 (London time) on Sunday until 22.00 (London time) on Friday, with the exception of emerging-market pairs, which operate on different schedules. All dealing times listed are London times. Please note that Daylight Savings Time in the UK or the country of origin may cause the times shown to be imprecise.
2. The minimum transaction size is one contract. Transactions above this minimum size, can be in fractions of a contract.
3. Spreads are subject to variation, especially in volatile market conditions. Our quotations are derived from quotes in the underlying market available to us from the banks and liquidity providers with which we trade. We monitor the liquidity available in the underlying market, offering our minimum spread when the market spread is particularly small. In most other conditions, our typical spread applies. If spreads move wider in the underlying market, we may match this. We do not apply any weighting or biases to our pricing sources.
4. For limited-risk trades a limited-risk premium is charged if your guaranteed stop is triggered. The potential premium is displayed on the deal ticket, and can form part of your margin when you attach the stop. Please note that premiums are subject to change, especially going into weekends and during volatile market conditions.
5. Margin requirements represent a percentage of the overall position value. You can find the tiered margins from the Get Info dropdown section within each market in our trading platform. Please note that higher margins may be required for large positions. Please see our tiered margining page for more details.
6. When you trade in a currency other than your default currency, your profit or loss will be realised in that currency. As standard practice, we will then immediately convert this back to your default currency. You can change this at any time via the trading platform.
7. For foreign exchange transactions (excluding bitcoin), adjustments are made to calculate the cost of funding a position, and these are posted to your account daily. The adjustments are calculated as follows: A = V x R Where:
A = the funding cost
V = the number of contracts x contract size
R = the current tom-next rate, including an administrative charge not exceeding 0.3% (0.8% for mini contracts) per annum. If the tom-next rate is less than zero, you will be debited for running a short position and credited for running a long position. If the tom-next rate is greater than zero, you will be credited for running a short position and debited for running a long position. The funding charge is calculated for any position opened before 22.00 that is still open after 22.00 (London time). Note: For any position opened before 22.00 Wednesday that is still open after 22.00 Wednesday, the daily interest credit or debit will be made for three days as opposed to one. This three-day adjustment covers settlement of trades over the weekend period. This will not always apply to emerging-market pairs. Emerging pairs are priced using one-month pricing, so the funding charge for these will depend on the three-day adjustment that is made in the underlying market. 8. On FX markets where a commission is charged we will not charge additional commission unless we notify you in writing. 9. Bitcoin funding will be 0.0438% daily for short positions and 0.0274% for long positions.
* Average spread (Monday 00:00 - Friday 22:00 GMT) for the twelve weeks ending 26 June 2017.