Are my funds held in segregated accounts?In accordance with the Financial Sector Conduct Authority, all client money is held in segregated client bank accounts.
While using the Demo account, do I risk any real capital?Not at all. The Demo account is completely risk-free as you can’t lose real capital, but you can definitely use it to practice or improve your trading skills.
How can I assess the financial status of my trading account?You should get acquainted with the following definitions:
Balance: deposits - withdrawals + P&L (profit/loss) of closed positions.
It does not include the profit/loss of the current open positions.
Equity: balance + P&L (profit/loss) of open positions.
This is the current value of your account.
What is a Rollover and how does it affect me?CFDs are linked to an underlying asset (a Future contract) that has an expiration Date.
Most of the instruments we offer, which are based on a futures contract, have a rollover date.
CFDs are rolled over to the next underlying Future Price during the last weekend (before the official expiration day).
This is known as the expiration rollover.
If there were any substantial price difference between the two Futures, an adjustment would be Credited or Debited from the balance of your account.
This Adjustment would show up in your account under Rollover Charge and would not affect the real value of your Equity.
If you do not want to incur the price adjustment or any implication of the underlying CFD rollover, you can close your position(s) and/or cancel Orders before the rollover date and open a new position afterwards.
Why are rollover rates tripled on Wednesdays?When placing a trade in the Forex market, the actual value date is two days forward, for instance, a deal done on Thursday is for value Monday, a deal done on Friday is for value Tuesday, and so on.
On Wednesday, the rollover amount is tripled to compensate for the following weekend (during which time rollover is not charged because trading is stopped at weekends).
How do you handle corporate actions?A corporate action is an event initiated by a public enterprise that affects the stocks issued by the company such as: rights issue, stock split, takeover, etc.
As you do not own the physical stock you will not have voting rights, nor any rights under a rights issue or similar event such as stock split, etc.
However, please keep in mind that when such an event occurs, we will always take measures to minimize the impact on your position(s) by applying a relevant adjustment to your trading account.
When is my account considered Inactive and what fees apply?The inactivity fee applies to accounts with no trading activity during a period of 3 (three) months or more.
Inactive Accounts will be subject to a monthly charge of 30 USD or its equivalent in the currency of the trading account for the maintenance, administration and compliance management the specific account.
For further details please see Terms & Conditions.
What does 'Leverage' mean?Trading on leveraged capital means that you can open positions with values significantly higher than the funds you actually invest, which only serves as the Margin.
Leverage can significantly increase the potential return, but it can also significantly increase potential losses.
Essentially, leverage allows you to pay less than full price for a trade, giving you the ability to enter larger positions than would be possible with your account funds alone and is expressed as a ratio.
A 1:2 leverage, for example, means that you would be able to hold a position that is twice the value of your trading account.
What is a Margin Call?Should your equity fall below the maintenance margin amount, CAPEX.com may make a Margin Call or provide you with a certain time frame to add funds to the account or to close the position(s) yourself.
In the event that you have not met the maintenance margin requirement by the end of the grace period or your account has gone into negative equity, the position(s) will be closed at the price available on our platform at the relevant time.
How can I avoid a Margin Call?Traders should monitor their balance at all times and make sure that they have sufficient funds in their trading account to maintain their open positions.
Can my account go into a negative balance?Traders cannot lose more than the funds they have in their account.
Gaps in the Markets sometimes could lead to negative account balance.
With CAPEX.com you will never lose more than the amount you risked on your trades.
Do you charge an overnight fee?When a position is left open overnight, CAPEX.com adds or subtracts a ‘swap’ fee to/ from your investing account.
When you make a trade, you are effectively borrowing one currency to exchange for another.
You must therefore pay interest on the currency you are borrowing, while receiving in return interest on the currency you are holding.
The amount of the financing charge will vary as it is linked to current interbank interest rates (such as LIBOR).
The charge will appear in your Account at the end of the trading day.
The formulae used to calculate the swap fee of a position are:
MT5 platform: no. of lots*lot size*tick size*MT5 swap charge*no. of days Cosmos platform: quantity*closing price at ending session*swap charge (%)*no. days.