Equity Index CFD FAQs
Contracts for Difference (CFDs) are ‘Over the Counter’ trading products that allow traders to trade based on the movement of an underlying product.
e.g the FOREX.com UK100 CFD gives exposure to the price movement of the UK 100 Index futures contract, with the advantage of leverage.
How does equity index CFD trading differ from currency trading?
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Equity index CFD trading operates in largely the same way as currency trading. Both products have a bid and ask price, you can go short or long, and the same types of orders apply to both products.
However, equity index CFD contracts have an expiry date because they derive their price from a corresponding index futures product. Click here for full details or our index contracts.
What are the trading hours for equity index CFDs?
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Trading Hours for specific CFDs vary depending on the base market. You can find individual trading hours on product details page on the trading platform.
Margin for equity index CFD trading is set at 100:1, or a 1% margin factor.
What do the prices of equity index CFDs represent?
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FOREX.com’s equity index CFD prices are derived from underlying futures contracts that trade based on their corresponding stock index. Since they are Futures based, FOREX.com equity index CFDs have a quarterly expiry date.
Is there an expiry date on equity index CFDs?
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Yes, FOREX.com's equity index CFDs are futures based and have monthly or quarterly expiries. For a full list of equity index expiry dates click here.
The expiry of the FOREX.com contract is intentionally several days before the respective futures contract to avoid expiry-related price volatility.
What happens when an equity index CFD contract expires?
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Upon expiry, all trades and orders for the expiring equity index CFD will be closed.
FOREX.com equity index CFDs expire at 16:15 New York time on the 2nd Wednesday of the expiry month. When trading resumes post-expiry, the FOREX.com price will then be based on the next-nearest expiring futures contract price.
What rate is used for cash settlement of equity index CFDs on the expiry date?
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Expiring contracts will be cash settled at the FOREX.com closing rate as of 14:15 New York time on the expiration date.
When does an End-Of-Day order on a CFDs contract expire?
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End-Of-Day orders on CFD contracts will expire at 17:00 New York time on Monday through Friday. End- of- Day orders placed after 17:01 will expire the following day. Note that this convention is consistent with currency, oil, and spot metals End-of-Day orders.
On Expiration Date, End-of-Day orders will expire at 16:15 New York time.
Are currency positions affected by expiring equity index CFDs contracts?
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No, currency positions are unrelated to equity index CFD expiry, and will not be affected.
What does one lot represent when trading CFDs?
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When trading equity index CFDs, one lot represents your trade size. Minimum trade sizes vary, and this will affect the profit/loss amount represented by a single tick. For minimum trade sizes and tick values, please refer product information on the trading platform.
Are equity index CFDs included in the daily currency roll?
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No, equity index CFDs are not included in the daily roll. The entirety of the carry cost, from today until the contract expiry date, is included in the price of the CFD.
Why do CFD prices change on their expiry date?
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At the time of expiry, the equity index CFD price will move from the current, expiring contract, to the next-nearest expiring contract. Since the new contract with be priced based on interest and dividend rates over the period until it expires, the price will differ from the current month.
Do FOREX.com equity index CFDs have any sort of Dividend, or Overnight Interest?
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No, FOREX.com equity index CFDs are based on the futures price. All overnight roll charges related to overnight interest or dividend payments are built into the price.
