gopalakrishna

* Trading Hours
* Quoted Currencies
* FX Pricing and Dealing Size
* Leverage
* Margin Levels
* Transacting a Deal with FXDD
* Types of Orders
* Rollovers

Trading Hours

FXDD's hours of operation are from 5:00 PM EST Sunday to 4:00 PM EST Friday.
Quoted Currencies

FXDD offers two-way prices in the following 20 currency pairs: EUR/USD, USD/JPY, GBP/USD, USD/CHF, EUR/JPY, EUR/GBP, GBP/JPY, EUR/CHF, USD/CAD, AUD/USD, CHF/JPY, GBP/CHF, EUR/AUD, EUR/CAD, AUD/CAD, AUD/JPY, AUD/NZD, NZD/USD, USD/MXN, and CAD/JPY.
FX Pricing and Dealing Size

As with all market makers, the spreads quoted by FXDD are dictated by market conditions. Standard spreads during normal markets are typically two to three pips wide on the major currency pairs. Deal increments are for notional lots of 100,000 of the base currency. For example, a purchase of one lot of EUR/USD at a price of 1.300 would be equivalent to a $130,000 USD notional position. The prices shown live are for amounts up to $3 million. The minimum deal size is one lot or 100,000 of the base currency.
Leverage

FXDD allows maximum leverage of 100:1 for a regular account and 200:1 for a mini account. For example, if you had a $10,000 account value, you could control a maximum position equal to 100 times $10,000 (or $1,000,000). Trading in a currency where the base currency is USD, you could take a position equal to ten, 100,000 lots. Working the numbers another way, if you purchase 1 lot of EUR/USD at 1.3000, you would control a position equal to $130,000 (100,000 euros x 1.300 exchange rate = $130,000). The cash margin required to hold that position would be equivalent to $130,000/100 or $1,300.
Margin Levels

For each lot of 100,000 purchased, a 1% margin must be pledged against the position. The 1% is another way of representing the 100:1 leverage (1% is 1/100th of 100%). FXDD has three additional margin levels: maintenance, margin call and liquidation margin levels.

Maintenance Level: The first level is the maintenance level and represents the account level you will need to have deposited with FXDD in order to continue to maintain the current position. Clients who have account values that are above the maintenance level are liquid and have ample leverage available for trading.

Margin Call Level: The second level is the margin call level. You would need to deposit additional funds up to the maintenance level if an existing position results in an unrealized loss that brings the account value below the margin call level.

Liquidation Margin Level: The final margin level is the liquidation margin level. If during a trading day the account value goes below the margin call level and the liquidation margin level, FXDD will automatically liquidate the position at the best available price.
Transacting a Deal with FXDD

With FXDD you have two ways of transacting a deal. Choose from the FXDD Trader or MetaTrader platforms.
Types of Orders

There are several types of orders:

Market: Market orders are the most basic order. A market order is an order to buy or sell a specified currency pair at the current ask (or offer) exchange rate if buying or the bid exchange rate if selling. FXDD defaults to a market order and automatically enters the current ask/bid exchange rate in the deal ticket.

Limit: A limit order is an order to buy or sell a specified currency pair at a user specified exchange rate.

Stop/loss: A stop/loss order is an order to buy or sell at a client-specified foreign exchange rate in order to liquidate a position or initiate a new position that has declined in value (from the time the order is placed).

OCO (one cancels order): OCO orders are when two linked orders are entered simultaneously. True to the description, if one of the orders is executed, it will automatically cancel the other linked order.
Rollovers

When a position is held past the close of business, the position is automatically rolled-over to the next available spot date by FXDD. The rollover needs to occur because all deals done with FXDD are for foreign exchange. Therefore, the old position must be closed and a new spot position established.
Deals done on FXDD are not for delivery but for hedging and speculative purposes, so open positions at the end of the business day must be rolled over to the next spot date. For FXDD, the rollover will occur on all open positions at 5:00 p.m. EST.

When a position is rolled over, all open positions are in effect closed and reestablished for value the next business day (in FX terms, the next available spot date). The interest rate differential of the base currency versus the counter currency will determine whether a net debit or credit is applied to the client's account.

For example, if a client is long EUR/USD currency pair, it implies owning EUR and being short USD. If short-term interest rates are higher for the EUR versus comparable US interest rates, a holder of EUR would earn that higher rate and pay the lower US rate when rolling over a spot position.

As a result, being long on a currency that has higher interest rates will result in a credit adjustment to a client's account. Conversely, being long on a currency with a lower interest rate will result in a debit adjustment to the client's account.

FXDD will make a debit or credit adjustment for each open currency pair at the end of each business day. Positions that are open past 5:00 p.m. EST will result in an automatic adjustment to the client’s account and will appear in corresponding client reports.

NOTE: Since open positions over a weekend need to be rolled from Friday to Monday (or 3 days), the debit or credit will be three times the normal amount. Also, if there is a holiday, the rollover amounts will also be affected. Finally, end of year or end of quarter periods can result in rollover debits or credits that can be higher or lower than normal -- spot interest rates can be particularly volatile resulting in a wider or narrower interest rate differential for the currency pair.

To avoid rollover debits or credits, it is suggested to close out all open positions before the end of the FXDD business day.