Frequently Asked Questions > Trading Questions

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Does FXDD allow fractional lot trading?
Can I change/give orders via e-mail or phone?
Where can I find out about FOREX trading?
What is a Rollover?
How is margin on opened positions calculated? And what does this represent?
Does FXDD allow Hedging that is opening short & long trades of same pair simultaneously?
Does FXDD allow OCO orders (One cancels the other)?
Is there any time limit on the opened position?
Why did the trailing stop not register the price and/or why did the trailing stop not execute?
What are the market hours?
Which currency pairs does FXDD trade?
What is the spread in major currency pairs?
At what percentage of margin does the account automatically liquidate?

Q: Does FXDD allow fractional lot trading?
A: Yes, subject to the specific account settings FXDD offers fractional lot trading.

Q: Can I change/give orders via e-mail or phone?
A: Our system is built on an electronic trading platform. In the event of an emergency, please contact our trading desk for help with trade executions: toll-free in the US 1.866.FOR.FXDD (367.3933) or +1.212.791.FXDD (3933).

Q: Where can I find out about FOREX trading?
A: Please click on the following link to find out more about FOREX trading: Forex Glossary or click here to visit the FXDD Learning Center where a wealth of knowledge can be found. In the Learning Center, you can attend a webinar, read tutorials, get information on FXDD Training Events, see upcoming Tradeshows, see articles published in literary magazines and visit our FAQ database.

Q: What is a Rollover?
A: At the end of each business day at 5PM (EST), FXDD will automatically roll over or swap, all existing open positions into the next spot settlement date. FXDD will debit or credit the client’s account depending on the interest rate differential between the base currency and the counter currency and the direction of the client’s position. For example, if the client is long a currency pair where the overnight rate for the base currency is higher than the rate for the counter currency, the client will earn a small credit for positions held overnight. If the opposite is true, the client account will be debited for the difference in the interest rate differential. The fundamental reason is if a client is long a higher yielding currency, he should benefit from being able to invest and earn a higher return overnight than what he has to pay for being short the lower yielding currency. Click here to visit our rollover rates.

Q: How is margin on opened positions calculated? And what does this represent?
A: With FXDD you have one account in US dollars for all of your positions. All margin requirements on realized and unrealized P/L as well as proceeds from trading are automatically calculated using the current market prices. Your account balance is maintained in real time. The required margin is calculated in USD real time. Margin on MetaTrader represents the initial margin requirement for that position(s) as well as the liquidation level on the account. For specific calculations on currency pairs margin levels, please send an email to support@fxdd.com.

Q: Does FXDD allow Hedging that is opening short & long trades of same pair simultaneously?
A: Yes, FXDD does offer hedging allowing customers to open short and long trades of the same pair simultaneously in our MetaTrader platforms.

Q: Does FXDD allow OCO orders (One cancels the other)?
A: Yes, both the FXDD Trader and the MetaTrader platforms allow OCO orders for existing positions.

Q: Is there any time limit on the opened position?
A: There is no time limit on opened positions; however, when a position is held past the close of the forex day ( 5pm EST or New York Time), the position is automatically rolled-over to the next available spot settlement date by FXDD. Since all trades done with FXDD are non-deliverable ( there is no actual physical transfer of the notional currency amounts) all open positions have to be rolled over for the next spot date.

Q: Why did the trailing stop not register the price and/or why did the trailing stop not execute?
A: Trailing stops in the MetaTrader platform are customized and are held on your computer, not on our servers. If you turn your computer off, close the trading platform, or disconnect from the internet the trailing stop will not be executed.. Thus it is important to remember to leave your system on if you have trailing stops resting in the market using MetaTrader. Trailing stops on the FXDD Trader platform are server based (held on our servers) and once set should not be affected by closing the platform or turning off the computer.

Q: What are the market hours?
A: The market hours are Sunday 5:00PM to Friday 4:00PM (EST) New York time.

Q: Which currency pairs does FXDD trade?
A: GBP/USD, USD/JPY, EUR/USD, USD/CHF, EUR/GBP, USD/CAD, EUR/CHF, GBP/JPY, AUD/USD, CHF/JPY, EUR/AUD, GBP/CHF, EUR/CAD, AUD/CAD, AUD/JPY, NZD/USD, AUD/NZD, USD/MXN, CAD/JPY.

Q: What is the spread in major currency pairs?
A: The spread on most majors are some of the tightest in the industry. However, our spreads are variable and may result in change during times of high volatility in the market.

Q: At what percentage of margin does the account automatically liquidate?
A: The liquidation level for FXDD is set at 100%. (i.e. A customer has an account with $3,000 and her leverage is 100:1. If she opens a one lot (100K) position in USD/JPY, the required margin will be 1% or $1,000. If the market goes against the customer's position to the point where the equity reaches $1000 or 100% of the margin requirement, our system will automatically liquidate all existing open positions for this customer at the next available price.