Trading Details

Margin

CKFX enables currency trading to be conducted on a highly leveraged basis. Every trader is able to select the degree of leverage or gearing that the trader wishes to employ in trading. Unless the trader specifies otherwise, CKFX sets the leverage levels to the CKFX's default margin levels for the deposited amount. The requirements for leverage vary with account size, and may be changed from time to time at the sole discretion of the dealing desk, based on volume traded and market conditions.

Margin Watcher

There is also an important safety feature embedded in this system that prevents clients from losing more money than they have in the account. Should the account equity - meaning the total floating value of the account - fall below the margin requirement of approximately 20% of the used margin, the dealing desk will close all positions. This protects the trader from losing more than the funds deposited into the trading account.

Rollover / Interest Policy

At 5:00 pm New York time, funds are subtracted or added to accounts with open positions because of the automatic rollover.

Note: On Wednesdays, the amount added or subtracted to an account as a result of rolling over a position tends to be around three times the usual amount. This "3-Day" rollover accounts for settlement of trades through the weekend period.

Why does Rollover take place? In the spot forex market, trades must be settled in two business days. If a trader sells 100,000 Euros on Tuesday, the trader must deliver 100,000 Euros on Thursday, unless the position is rolled over. As a service to our traders, CKFX automatically rolls over all open positions to the next settlement date at 5:00 pm New York time. Rollover involves exchanging the position being held for a position expiring the following settlement date. The positions being exchanged are usually not valued at the same price. The amount of the difference varies greatly based on the currency pair, the interest rate differential between the two currencies, and fluctuates day to day with the movement of prices.

Dealing Hours

The dealing desk is open 24-hours a day from Sunday 5:00 PM New York time until Friday 2:00 PM New York time. Quotations, order placement, and confirmation are available online. CKFX does not allow voice/phone trading. Only in cases of emergency will CKFX accept voice orders and for liquidation of open positions only. To close trades over the phone, please call the US toll-free number at ***1-888-266-9696****.

Margin: Managing your Risk in the FX Market

By trading on margin, traders have the ability control positions much larger than their deposit. The margin deposit for leverage is not a down payment on a purchase of equity, as many perceive margins to be in the stock markets. Rather, the margin is a performance bond, or good faith deposit, to ensure against trading losses. This is very useful to short-term day traders who need the enhancement in capital to generate quick returns. However, leverage is a double-edged sword. Without proper risk management, this high degree of leverage can lead to large losses as well as gains. If the equity in your account drops below the margin required to maintain your open positions, the dealing desk will close all open positions. This guarantees limited risk. Once usable margin reaches zero, a margin call will ensue and all open positions will be closed by the dealing desk. To learn more about the margin watcher feature please contact the CKFX staff, which is available 24-hours a day, 7 days a week to walk you through the trading station.