How does Spread Betting work?
Spread betting is a type of financial derivative that allows traders to speculate on the price movements of various financial instruments, such as stocks, currencies, and commodities, without owning the underlying asset. The trader places a bet on whether the price of the asset will rise or fall, and the size of their winnings or losses is determined by the accuracy of their prediction and the size of their bet.
How to calculate Pip value?
Pip Value can be variable or fixed, depending on two factors:
1. The currency pair traded, (for example: EUR/USD).
2. The base currency, (for example: EUR of the EUR/USD currency pair is the measuring currency).
To calculate pip value, divide one pip (usually 0.0001) by the current market value of the forex pair. Then, multiply that figure by your lot size, which is the number of base units that you are trading. This means that the value of a pip will be different between currency pairs, due to the variations in exchange rates.
How can I add/remove instruments from my Favorites?
To add an instrument to your Favorites while on the platform, mark the star next to your instrument of choice’s name. To remove the instrument from your Favorites, unmark the star.
Is there CFD Rollover on your platform?
Specific CFDs on our platform have a Rollover date and are automatically rolled over to the next monthly contract for the respective instrument. Expiration dates – including weekly expiration dates – are posted on our website. You’ll also find rollover dates listed in the information box for the relevant instruments in our trading platform.
What is a Margin Call?
To keep your positions open, you need to maintain a certain margin level within your account. This margin is calculated as a percentage of the total value of your ongoing trades. If your margin falls below this level – currently 50% - then the system may start closing your trades to protect you from further losses. (Starting with the trade that has the biggest open loss.) You can increase your margin level by either making further investments or decreasing your open position exposure.
What spreads do markets.com offer?
The Spread on our platform is Floating. This means that the Spread we have can vary throughout the day depending on various market factors such as liquidity or volatility. Floating spread means that when liquidity is high and volatility is low, it can adjust accordingly and tighten.
How can I open Entry Limit/Entry Stop Orders?
To open one of the above orders, select your direction (Buy or Sell) and from the New Order window, follow up by clicking on the ‘Advanced’ option.
If you have selected Buy, you will be allowed to place a Buy Limit or Buy Stop Order. If you have selected Sell, you will be allowed to place a Sell Limit or Sell Stop Order.
How can I add an Indicator to my chart?
To add an indicator to your chart, navigate to the ‘Indicators’ button on top of the chart (if on Advanced mode) or click on the icon from the menu available on our chart (if on Basic mode).
What is a Stop Loss/Take Profit?
Stop Loss and Take Profit are protection orders which allow you to protect yourself against further losses or lock-in your profits when you are not able to monitor your positions.
Stop Loss limits an investors loss on a specific level. On our platform stop-loss can be set based on rate, USD value, % of Margin.
Take Profit fills only when the predefined instrument price is reached. On our platform take-profit can be set based on rate, USD value, % of Margin.
What is the MetaTrader 5 trading platform?
MetaTrader 5 is an all-in-one state of the art multi-asset trading platform for professional traders. It offers tools for comprehensive technical and fundamental price analysis, as well as the use of algorithmic trading applications (trading robots, Expert Advisor).
Are indices credited/debited with cash dividends?
If a cash index is price-weighted, we will add cash dividends into your account. Accounts holding long positions will be credited with the dividend and accounts holding short positions will be debited with the dividend.
Is delivery of commodities available?
No, we do not offer delivery as CFDs do not entitle traders to underlying assets. CFDs allow investors to speculate on the price movements of commodities, but they do not represent ownership of those commodities. The benefits of trading commodities with CFDs are that without owning the underlying asset you can benefit from better flexibility, liquidity and lower costs.
What is a bond?
A bond is a debt security issued by a government, corporation or other entity to raise capital. When a trader buys a bond, they are effectively loaning money to the issuer in exchange for regular interest payments and the return of the principal at maturity. Bonds have a fixed term, or maturity, which can range from a few months to several decades.
If I hold a CFD position on bond, am I entitled to receive yield payment?
CFDs allow you to speculate on the price of an instrument without actually owning it. It is because of this that your trading outcome is only based on the price fluctuation of the bond. Therefore, you are not entitled to receive bond yields when trading with bond CFDs.
What is the difference between TNOTE and TBOND?
A TNOTE refers to the Treasury Note. It is a debt security issued by the US Treasury with a maturity of 2 to 10 years, while a TBOND refers to a Treasury Bond, another type of debt security issued by the US Treasury with a maturity of 10 to 30 years. Both are considered lower-risk investments and are commonly traded in financial markets, but one has a longer maturity date attached.
Do I own the actual share when I buy CFD on shares?
By holding a CFD you just speculate on the price fluctuation of a particular share, you do not own the underlying.
Can I use my voting rights if I own CFD on shares?
By holding a CFD you just speculate on the price fluctuation of a particular share, you do not own the underlying. Hence CFD holders do not have voting rights.
Do you charge a withholding tax (WHT) on Share Dividends?
Only for Us stocks. We charge 30% WTH on US Stocks’ share dividends.
Can I process a broker-to-broker transfer if I hold CFD on shares?
No, CFD stocks can not be transferred broker-to-broker.
What is an IPO?
An IPO stands for initial public offering. It is the first time a company's stock is offered for sale to the public.
How is an IPO priced?
An IPO is priced by the investment bank underwriting the offering through a process called bookbuilding. The bank gauges demand from investors and sets a price that reflects the perceived value of the company.
How do you short an IPO?
The IPO lock-up period typically lasts from 90 to 180 days. It is intended to prevent too many shares from flooding the market in the early days of the IPO. A high supply of shares could drive down the price of the IPO stock. As soon as the lock-up period ends, you can short an IPO. Please note that markets.com reserves the rights to define what orders to accept.
Who determines the IPO share price?
The IPO share price is typically determined by the investment bank underwriting the offering, in consultation with the company's management team. The price is influenced by factors such as market conditions, investor demand, and the company's financial performance.
What is a CFD?
CFD (Contracts for Difference) allow investors to execute leveraged long-term or short-term trades, with a broad selection of instruments. CFDs are a flexible and accessible trading option that is based on the change of price in multiple commodity and equity markets, with leverage and immediate execution. Trading on CFDs allows you to speculate with price movement of stocks without actually owning them.
What is Spread?
Spread is the difference between the Bid price and the Ask price and is charged upon the opening of your trade.
For example, if the quote for the EUR/USD currency pair is 1.2910 against 1.2911, then the Spread is 1 pip.
What is Required Margin and Used Margin?
Required Margin refers to the amount required for you to open a position and is derived through the following formula:
(volume x current price) / leverage + (volume x spread) = total required margin
For example: If you buy 10 barrels of oil at 51.30, then the calculation for Required Margin is:
(10*51.30)/100 + (10*0.03) = 5.43 USD
Used Margin is the sum of margin currently used for your open positions and is calculated by adding up all of the initial margins of all of your open positions.
What is a Pip?
Pip is the acronym for Price Interest Point, which is the smallest price move that a given exchange rate can make.
What is the difference between Net and Gross P&L
Net P/L is what you are left with after all the cost & charges are taken into account, while gross P/L is simply the difference between your opening price and current price multiplied by the quantity you hold.
What is the difference between TradingView and LightWeight chart?
Lightweight view is lighter less drag on performance less clutter, while TradingView offers more advanced heavier charts with way more many tools and customization options.
Can I add/modify orders out of trading hours?
Yes, most of the symbols we offer are available for adding as well as modifying pending and protection orders when they are out of their trading sessions. If you revised your sentiment, you can update your orders 24/7.
What is the leverage on your platform?
The maximum leverage for Retail clients is 1:30. Some instruments, however, have maximum leverage ratio of their own which you may check here: https://www.markets.com/uk/trade/cfd-trading.
If you are looking to increase your leverage, you may apply to become a Professional client. More information on this topic can be found here: https://www.markets.com/uk/trade/professional-trading.
What happens in case a company that I trade on announces a corporate action?
Depending on corporate event, price and/or quantity adjustments may be applied to your open positions in order to reflect the effect of the corporate action. For more specific information depending on your case, please reach out to our support team via support@markets.com or via LiveChat.
What does Overnight Swap (Swap Fee) mean & how to calculate it?
Overnight Swap (Swap Fee) is the process whereby the settlement of a deal is rolled forward to another value date, and a charge is levied based on the difference in the interest rates of the two currencies. Every day at 21:00 GMT, open positions are rolled over to the next day and the positions gain or lose interest based on the interest differential between the bought and sold currencies.
The Swap is charged triple on Wednesdays For FX pairs and triple on Fridays for all other assets in order to compensate for the upcoming weekend.
To calculate applied Swaps you can use the following formula:
(Overnight Swap (Swap Fee) %) x (Last mid-price at 21:00 GMT) x (Quantity) x (number of days held open)
Last mid-price = (Closing Bid + Closing Ask)/2
Overnight Swap (Swap Fee) % could be found in each instrument’s Information box.
Why short positions are not allowed on particular products?
During periods of market stress, exchanges may impose short-selling restrictions during periods of market stress in an effort to reduce volatility. In these cases, markets.com reserves the right to follow the exchange restrictions.
My SL/TP was reached but my trade didn't close. Why so?
Bear in mind that Buy positions close at BID price whereas Sell positions close at ASK price. When referring to the chart, please ensure that you are looking at the relevant pricing.
If you are still having issues, please reach out to our support team via support@markets.com or LiveChat and prepare your position/s ID numbers.
Can I convert currencies using my markets.com account?
Yes. You can locate a currency converter on markets.com Web Platform. Every single FX pair has a Converter where you can convert between the base and quote currency.
Can I trade FX CFDs on any platform offered by markets.com?
Yes, we offer major and minor FX pairs on all our platforms, MT4, MT5 and our markets.com Trading Platform.
Can I check when my CFD on Futures position will be rolled over?
To ensure that you're well-informed about your trades, you can easily locate the rollover date for each CFD by visiting its respective asset class page on the markets.com website. Rollover means switching to a new futures CFD contract - it can affect the underlying contract's value and expiry date. It's crucial to be mindful of the rollover date for each CFD on Futures as it can significantly impact your trading outcomes.
How do I start trading Indices?
You can start trading CFDs on Indices by signing up to markets.com and using either our desktop platform or mobile app. These can be further enhanced with MT4 and MT5 integrations.
What happens in case of Dividends?
Upon dividend distribution by the company-issuer of the underlying shares in a CFD, we apply a respective adjustment to your trading account on the ex-dividend date. The amount of dividends paid will depend on the company payout, and not on markets.com. Depending on the position, dividends can be credited or debited from your trading account.
Do you offer trading notification services?
Yes, we offer a variety of Trading Notification Services to keep you updated on important events happening in the market. These include push notifications, SMS messages, emails and pop-ups in our trading platform. You can enable these alerts from the top right menu on the markets.com platform. Just click ‘Settings’ and then ‘Notifications’.
Can I log into my account at the same time through my mobile phone and web?
Yes, you can log in to both the mobile app and your web browser at the same time, if you want to.
What are the advantages for professional traders with MetaTrader4?
MetaTrader4 offers professional tools to high level traders. Benefits include increased leverage levels and your own dedicated personal account manager.
How can I download MT4/5?
Simply log into your account through our markets.com website, and head to the My Portal area in the top-right of the screen. Here, you’ll find the links to download MT4 & MT5.
What are your trading hours?
The trading hours vary depending on the type of instrument. You may view a full list of them here: https://www.markets.com/uk/trade/trading-hours.
Opening or Closing times may also be altered by markets.com due to liquidity and risk management considerations.
What Indicators do you offer?
markets.com offers the following Indicators: Trading Central, ADX, ADXR, Acceleration/Deceleration, Accumulation Swing Index, Accumulation/Distribution, Aroon Indicator, Aroon Oscillator, Average True Range, Awesome Oscillator, Bollinger Bands, CCI, CSI, Center of Gravity Oscillator, Chaikin Oscillator, Chaikin Volatility, Chande Momentum Oscillator, DEMA, DMI, DeMarker, Detrended Price Osc, Dynamic Momentum Index, EMA, EMA Envelope, Elder Ray, Fast Stochastic, Force Index, Forecast Oscillator, Full Stochastic, Gator Oscillator, H-L Volatility, Ichimoku, Inertia, Intraday Momentum Index, Kairi Relative Index, Keltner Channels, Linear Regression Channel, Linear Regression Curve, Linear Regression Slope, MACD, Market Facilitation Index, Mass Index, Median Price, Momentum, Money Flow Index, Negative Volume Index, On Balance Volume, Oscillator, Parabolic SAR, Percent Change, Percent of Resistance, Percentage Price Oscillator, Price Channel, Price Oscillator, Price and Volume Trend, ROC, Relative Strength Index, Relative Vigor Index, Relative Vigor Index SMA, Relative Volatility Index, SMA, SMA Envelope, STARC Bands, Schaff Trend Cycle, Slow Stochastic, Smoothed Rate of Change, Spearman, Standard Deviation, Standard Deviation Channel, Standard Error Bands, StdDev Volatility, Swing Index, TEMA, TMA, TRIX, Time Series Forecast, True Strength Index, Typical Price, Ultimate Oscillator, Vertical Horizontal Filter, Volume Weighted Average Price, WMA, WMA Envelope, Weighted Close, Wilders Smoothing, Williams AD, Williams Alligator, Williams Percent Range and ZigZag.
What are trading tools and how do traders make best use of them?
markets.com provides a variety of tools that traders can use and find helpful along with their trading. Better insights into the market gives you more understanding, which can help you make crucial decisions when it comes to your trades.
How can I manage my Notification Settings?
You can manage your account's leverage settings from markets.com platform, Leverage settings.
Can I change the time zone of the markets.com platform?
You can select your location's time zone through your markets.com trader, Localization - Time Zone
How can I switch between accounts?
My Portal on your markets.com webtrader displays all your accounts with us. Select any account that you would like to use and enjoy our services.
Which types of Instruments do you offer?
markets.com offers a vast variety of instruments, including shares, currencies, indices, bonds CFDs and commodities.
What are the CFD trading conditions of markets.com?
With markets.com we offer leveraged trading on thousands of CFD stocks with low spreads. Visit our Full CFD Instrument List https://www.markets.com/uk/cfd-asset-list where you can find trading conditions for our over 400+ instruments.
Can I open more than one position on the same symbol?
You can open as many positions, on each direction as you wish. markets.com does not impose any restriction on number of positions that can be opened at once. We do not have netting, meaning your positions will not be aggregated into one single position.
What happens on dividend ex-date if I hold a short position?
When a company pays dividends, its stock price is expected to drop approximately as much as the dividend paid. Hence if you're holding a short CFD position in the stock on the day of the ex-dividend date, your position will increase in value. markets.com will debit your account by the amount of the dividend. You will not gain or lose anything by holding a CFD position in a stock that pays a dividend.
What are the advantages for professional traders?
Professional traders with a markets.com are able to access a range of unique advantages, such as increased leverage, and your own dedicated personal account manager.
What is CFD Bond Trading and how to access it online?
Get exposure to CFDs on the major government bonds by opening a leveraged position through our markets.com platform. Our wide range of bonds will let you speculate on the price of the bond without owning the instrument itself. Take a long or short position, and adjust your order easily through Markets.com mobile app, webtrader and/or MT4/5.
Why trade indices with markets.com?
- Get exposure to an entire sector or market with a single position
- Competitive spreads
- Most of our indices trade around the clock
- We offer both spot and future CFD indices
- If an index is price-weighted, we will add cash dividends into your account
Do you offer Mt4/5 Platforms
Apart from markets.com Web platform we also Offer MT4 and MT5 platforms.
Can I transfer Funds between my trading accounts?
Yes! Top right Menu on your markets.com platform > My portals > Fund transfer
What is an ETF?
An ETF, or exchange-traded fund, is a type of investment fund that is traded on a stock exchange. ETFs are designed to track the performance of a specific index, commodity, or basket of assets, and they provide investors with exposure to a diversified portfolio of assets. ETFs are similar to indices but offer more flexibility as they can be traded throughout the day.
What is the difference between base and quote currency?
The base currency is the first currency in a currency pair, it represents how much of that currency is needed to buy one unit of the quote currency - which is the second currency in the pair. For example, USD/GBP quotes how much USD is needed to buy a single GBP.
Is Forex CFD trading the same as Forex trading?
No, Forex CFD trading involves trading contracts for difference (CFDs) based on the foreign exchange market, while traditional forex trading involves buying and selling actual currency pairs.
How can I trade on TradingView?
Integrate Markets.com with TradingView to engage in CFD trading or place spread bets (limited to the UK) using advanced charts. Both platforms empower you to initiate long or short positions with a fraction of your trade's total value through leveraged trading. This allows for larger positions and increased exposure to global financial markets. However, it's crucial to acknowledge the associated risks, as leverage can amplify both profits and losses. Therefore, implementing risk-management tools is essential when trading these financial instruments.
In CFD trading, the exchange occurs based on the difference in price from the contract's opening to its closure. Spread betting involves staking a specific amount of money per point of price movement in the underlying asset and is exempt from taxes in the UK.
On what devices can I use TradingView?
TradingView is accessible across various devices, including desktops, mobile phones, and tablets.
What markets can I trade with TradingView?
Utilizing Markets.com on TradingView allows you the flexibility to take both long and short positions in Contracts for Difference (CFDs) across a vast array of more than 3,700 markets. This comprehensive selection encompasses stocks, equities, indices, and forex.
Are there additional fees for trading on TradingView?
Registering with TradingView is free! Markets.com may have some fees and costs apply. Further details can be found here.
Still have a question?
If you have questions or need assistance, talk to our team, get your questions answered, or need more insight into how to trade on markets.com – we’ve got you covered.