Markets & Products

To combat fast-moving markets, our price tolerance feature provides flexibility around fill proximity between the available market price quoted on the trading platform and the actual price at which the trade is executed. Should the rate at which your trade is ultimately executed fall outside the prevailing market rate by the amount of your specified price tolerance, that trade will be rejected by our system.

Markets where price tolerance applies will have default tolerance levels set, but they may be altered by the client on the trading platform. The default price tolerance on the platform is set to "Market Order".

If you wish to avoid any slippage, you can set the price tolerance level to '0'. This will mean that should our trade execution price move, you will need to submit a new trade request.

To set your desired price tolerance, select your market in the 'Markets' or 'Watchlists' tabs, then select 'Info'. Scroll down to 'Preferences' and use the selector to update your price tolerance.

Yes, we allow you to go both long and short in the same market on a non-FIFO basis. FIFO stands for 'first in first out'. If you have multiple trades in the same market, the first position to close is the first position placed in that market.

Non-FIFO allows you to open and close positions in the same market in any direction you wish. It doesn't prevent you from closing the first trade you placed, it simply gives you greater flexibility to open and close multiple positions in multiple directions. All our accounts are Non-FIFO.

Example

If you are long on Wall Street by 5 CFDs, you can also short Wall Street to hedge all or some of your original trade. In order to do this, you must use the hedge button found on the deal ticket.

A stop entry order is an instruction to place a trade at a specified price that is worse than the market’s level at the time of placing the order. This will only be executed if the market’s price reaches the level of your order.

Example

If the Australia 200 (our market for the ASX 200) is at 7,500, you may choose to leave a stop entry order to sell 10 CFDs if the level falls to 7,400. Then, if the index’s price falls by 100 points we will automatically open the position for you.

Please note that orders may be subject to slippage, see 'What is slippage?' for more details.

You can change your price tolerance by amending the tolerance levels either from within the market information sheet for your chosen market (under the 'Preferences' section), or from within the deal ticket itself.

If you want to remove price tolerance completely, you can do so by setting the price tolerance level to '0' (or 'fill or kill') for the relevant market. This will mean that should our trade execution price move, you will need to submit a new trade request.

A limit closing order, or take-profit order, is an instruction to close a position once it has earned a specific amount of profit. They work just like stop loss orders, but instead of preventing losses they help secure profits.

If your open position is closed, either by an opposing trade or by an order activation, then the linked limit will be cancelled.

Example

If you enter into a long ASX200 trade at 7,500, you may choose to leave a linked limit order at 7,600. Then if the market's price rises by 100 points we will automatically close your trade, helping you lock-in your profit.

Please note that orders may be subject to slippage, see 'What is slippage?' for more details.

Slippage can occur if markets 'gap' – when prices jump from one price to another without trading at every increment in between. This can happen when the market adjusts to news. For example, if a company announces worse-than-expected profits, its share price may fall from 100 to 90 without trading at 99, 98 etc. If this were to occur, then we would be unable to execute orders at prices where the underlying market did not trade and orders would be filled at the next available price.

On Web Trader: This information can be found by either right-clicking on the market name, or selecting the drop-down arrow next to the market name, then choosing 'market info' from the options.

On our mobile app: Tap your chosen market and then select 'Info' from the options shown.

You can place trades and orders via any of our trading platforms. Simply select a market to open its deal ticket and use the ‘Trade’ tab to trade immediately or the ‘Order’ tab to place an order.

You're only charged margin on the larger side of the trade and not any hedged trade thereafter which is smaller than the initial trade.

Trade example

• You open a sell 10 US SP 500 with an initial margin of $4000
• You then open a buy 5 US SP 500 trade with a margin of $2000 (hedged trade)

As the margin is bigger on the open sell trade, this will be the total margin required for all trades in this market. We do this to ensure that you have enough margin to cover the remaining position if and when the larger side is closed. The same rule applies for all step margin levels.

There is no expiry for a CFD trade (unless it is a CFD future or a Knockout).

Yes, you can amend orders on your positions at any time, including out-of-hours trading. Guaranteed orders are the only exception to this and can be amended only during market hours.

To place a GSLO on our Web Trader platform, simply navigate to the stops section of the deal ticket and choose ‘Guaranteed stop loss’ from the drop-down menu. You can then select your stop level and proceed to place your trade.

To place a GSLO on our mobile app, open the deal ticket and choose ‘stop loss’, then select ‘Guaranteed’ from the options available.

It’s free to place a GSLO and you’ll only be charged a small premium if it is triggered. Please be advised that you can place/amend/update your GSLOs within market hours for free.

A trailing stop is created is a type of stop order that 'trails' your position by a specific number of points. If the trade moves in your favour, the trailing stop moves with the market, executing only when the market moves against you by a set number of points.

A trailing stop is more flexible than a fixed stop loss, since it automatically tracks the market's price direction and does not have to be manually reset, as you would have to with a fixed stop loss.

An order is an instruction to place a trade. Orders can be placed to place a trade immediately or at some point in the future. The trade is the transaction that opens or closes a position.

A guaranteed stop loss order (GSLO) is an order that closes your trade at an exact level chosen by you, regardless of market gapping. While a regular stop loss may not cover you in times of heightened volatility where markets can “gap” between one price and the next, a GSLO offers 100% protection.

At FOREX.com you can add a guaranteed stop loss to a wide range of our 6,000 markets and will only pay a small premium if your GSLO is triggered. You can read more about GSLOs at FOREX.com in our dedicated Trading Academy section.

You can amend or cancel orders by clicking on the 'amend stop & limit' button, which can be found in the 'active orders' tab on the trading platform.

Orders are only monitored and executed during FOREX.com trading hours (and not necessarily during the underlying market trading hours). We will execute any triggered orders at the first available price in our opening hours for cases where the markets continue to trade outside of FOREX.com hours. This may be different to the original order level if the market has gapped.

Your order may have been rejected due to a number of reasons, including insufficient funds. Orders will only execute if you have sufficient funds in your account at the time the order is triggered, and not when the order was placed.

Yes you can. However, you cannot roll CFD futures via the platform. Please call Client Support Team on +65 6826 9988 to do so.

Positions may be automatically closed out either due to an attached order triggering, a futures CFDs reaching expiry or due to your margin falling below the margin close out level. Please see the margin and leverage section for more information about our margin policy.

You can raise trade queries/disputes by calling our Customer Support Team.

A corporate action is an event initiated by a company that will affect all positions in that market. Some of these will have a direct action on the market’s price such as dividends, some are indirect such as stocks splits and some have little to no impact such as a name change.

Yes, your account is subject to any corporate actions occurring in the underlying market. All corporate actions (excluding dividends) will be emailed to you prior to the event. This is known as the instruction date. Depending on the corporate action, you may have to make a decision about the positions on your account . You will have until the instruction deadline date noted in the email to decide. Corporate actions are free of commission.

Please note that in the event of any positions being closed and reopened, working orders will be cancelled.

Yes, CFD accounts are subject to dividend adjustments intended to replicate the net dividend payment applicable to the ordinary share. A dividend adjustment is credited to long positions and debited from short positions held at the close of business on the day before the ex-dividend date. Payment is then credited/debited to your account around the ex-dividend date. Dividends should not result in a profit or loss on your account, as the underlying instrument will open lower on the ex-date by the amount of the dividend.

Due to new tax regulations under U.S. code section 871 (m), there have been changes to the way U.S. equity dividend adjustments paid to clients on CFDs on shares in U.S. incorporated companies. Please visit our page on US code section 871(m) for more information.

There is no set minimum, but we are reluctant to offer markets for stocks with a market cap of less than £50m or equivalent and US stocks with a market cap of less than $1b. If you wish to short a market, then the minimum market cap will be higher. Please contact Customer Support if you wish to enquire about trading a market that we are not listing.

Our daily change indicator will reflect the movement of each market on that day. However, as many of our markets run outside of market hours, such as the FTSE 100 (UK 100), the daily change may not accurately reflect the daily change during underlying market hours. As such, our daily change indicator is an indication only. Please see the bid and offer prices for tradable quotes.

Finance charges work on a per-trade basis. This means you'll be charged overnight financing charges relating to each specific trade you place, regardless of whether they are a hedged position or not.

To price these non-expiring markets, we use two sufficiently liquid futures contracts on the underlying commodity. This is usually the two with the nearest expiry date.

The contract with the closest expiry date is called the ‘front’ month contract and the second-nearest expiry date is called the ‘far’ month contract.

Throughout the duration of the front month contract, the price of the NEC will gradually move from the price of the front month to the price of the far month.

As there will be an adjustment to the NEC Market price every day, your account will be subject to an adjustment in the form of a Credit/Debit to offset this price adjustment. For example, if the NEC contract is adjusted by +2 points, clients with long positions will be debited 2 x stake and clients with short positions will be credited 2 x stake. 

A limit down price is the maximum sell-off permitted in a market on a single day of trading. Once this level has been reached, trading on the market may then be restricted to prevent significant volatility and potential panic selling. A limit down price is typically determined as a percentage decline in a given market, rather than a nominal decline in price.

A limit down period is imposed by an exchange (such as the NYSE) and not by brokers. It usually lasts 15 minutes but may be extended depending on the percentage decline before market open.

Please note that a limit down only restricts selling on the affected market(s). 

All metals (including spot and CFD markets) are available 23 hours a day, 5 days a week. Please visit our Market Information Sheets in the platform for exact opening and closing times. When trading is closed you may still place new working orders or edit and cancel existing working orders. Metal markets also follow CME holiday closures. 

Full week trading, including over the weekend, is available for gold with the XAU/USD 7-Day product.

Margin is the amount of money you need to deposit with us in order to place a trade and maintain that position.

When you place a trade, you must have enough net equity (cash and unrealised P&L) in your CFD account to pay the margin requirement – as well as any commission (if applicable) and/or other charges, including the spread and financing. Margin is not a fee; it is deducted from your account at the time of placing a trade and returned when the position is closed.

Leverage is a trading tool that uses borrowed capital to increase the potential return on investment, allowing traders to buy or sell a greater amount of a financial asset than the funds used to open the position. As a result, traders can gain a large exposure to the financial markets for a relatively small initial deposit. Remember that with greater exposure comes greater trading risk. The higher the leverage, the faster profits can be made, but also the faster your initial funds can be lost.

Learn more about margin and leverage.

Our margin levels differ according to market, asset class and position size. You can find out the specific margin of each instrument in the 'market info' section in our trading platforms.

To calculate the amount of funds required to cover the margin requirement when you open a CFD position, simply multiply the total notional value of your trade (number of contracts traded X price of instrument) by its margin factor.

Learn more about how margin and leverage work in CFD trading.

With FOREX.com trading platforms, you can calculate your margin before placing a trade through the trading platform's margin calculator, monitor each position's margin requirement or review your trading account's total margin.

The larger the trade size, the higher the risk level associated with the trade. Therefore, we may increase our margin requirements for larger, or additional, trades within an instrument. To do this, we increase the size of the margin requirement at specific levels, known as 'step margin levels'.  For example, in Company ABC:

If you were to open a position on company ABC by buying 1,000 CFDs, your margin requirement would be 10%. If you then place a trade for an additional 1,000 CFDs in the same market, the extra 1,000 would now be subject to the 20% margin requirement.

Hedging margins are set to the 'longest leg,' so you will only be charged margin for the longer portion of the trade, and nothing for the shorter leg.

For example, you are trading CFDs and have two open Wall Street CFD positions, initially selling a quantity of 10 and then buying a quantity of 5. In this case, you would only be charged margin for the original, larger side of the trade, the Wall Street short 10 positions. If the margin for selling 10 Wall Street is $15,000 and buying 5 Wall Street is $7,500, you would only need to provide enough margin to cover the original sell position for both trades in this market.

‘Margin call’ refers to the situation when the balance on your trading account falls below the minimum amount required to maintain your open positions. You will be placed on margin call when your margin indicator level drops below 100% on our standard account (traders using Web Trader and/or our mobile app), or 125% for MetaTrader accounts, and we will notify you via email.

If your account is subject to a margin call, then you will need to take action by either depositing additional funds to the account, or by reducing or closing positions to reduce the maintenance margin required. If your account remains on margin call for a prolonged period of time then we may close one or more of your open positions to bring the account balance up to the required maintenance level.

Margin close out (MCO) refers to the automatic closing of one or more of your open positions once the funds in your trading account reach a certain threshold. The closeout level for FOREX.com is set at 50% (or 100% if you are trading on a MetaTrader account). If your margin indicator is at or below the MCO level, we are required to close any or all your open positions as quickly as possible to protect you from incurring further losses.

It is your responsibility to monitor your CFD trading accounts to maintain your margin requirements, and not rely on us to close out your open positions should they be nearing, or exceed, the margin closeout levels.

The Margin Level Indicator on the trading platform provides you with a convenient way of monitoring your margin level.

The calculation for the margin indicator is determined by the Net Equity in your CFD trading account divided by your Total Margin Requirement, multiplied by 100. To raise your margin level, do one or more of the following:

• Deposit funds
• Close or part close positions

Margin close out levels vary by trading account type. If your trading account offers shares, then your MCO level will be 50% of your total margin requirement. If it does not offer shares your MCO level will be 100%. If you drop below your margin requirements, your largest losing position will be closed first, followed by the next largest, and so on until your margin level moves back above the required minimum amount. This is to protect you from incurring further losses.

Read more about managing risk in CFD trading.

Yes, leverage will affect your margin. Essentially, the higher leverage you employ the lower the margin requirement for any given market.

For example, if you want to open a trade worth $100 with 2x leverage, you need to deposit (100/2) 50% of your position’s full size as margin, or $50. If you were to trade with 5x leverage instead, then you’d only need to deposit (100/5) $20.

At FOREX.com, regulations require us to offer specific margin requirements on each individual market, so you can’t change the leverage on your CFD trading account.

Accredited Investors will be subject to minimum 2% margin on FX trades, as opposed to 5% for Retail clients.

The fastest way our team can help you with any questions you may have about trading with us is via live chat.

Speak to our friendly Client Management team via phone, email or live chat and get any of your questions or queries resolved.

You believe the Wall Street market price is going to rise, so you buy 2 Wall Street CFDs with an opening price of 35,420.

You place a GSLO at 35300, which means the maximum loss on the trade would be (35,420-35,300) x 2 = $240.

The stop premium for Wall Street is 1.8x the quantity of CFDs and would therefore be 1.8 x 2 = $3.60 if your GSLO was triggered.

The required margin is calculated as follows:

Trade Size x Stop Distance x 1.1

In this example, your margin requirement would be: 2 x 120 x 1.1= $264 

[IMAGE]FXSG GSLO wall street example

As a result of high volatility, the price of the Wall Street Index moves against you and unexpectedly drops from 35,420 to 35,259.

Despite market gapping, your trade closes automatically at your specified GSLO price of 35,300.

Your total loss on the trade is therefore $240 (maximum risk) + $3.60 (stop premium) = $243.60

If you had placed a standard stop loss order, then your position would have closed at the next available price (35,259) and resulted in a loss of $322.

A guaranteed stop loss order (GSLO) is an order that closes your trade at an exact level chosen by you, regardless of market gapping. A regular stop loss order may not cover you in times of heightened volatility where markets can “gap” between one price and the next without trading at the prices in between.

A GSLO is also a useful way to reduce the margin requirement for your trade. When you choose your stop level, you determine your maximum risk level (the maximum amount you could lose on the trade if your stop is reached), and we therefore ask for lower margin compared to trade without a stop trade attached.

At FOREX.com, you can place a GSLO on thousands of financial markets and will only pay a premium for added protection if your GSLO is triggered, making them a cost-effective way to manage your trading risk, whilst also providing the opportunity to increase your leverage.

To place a GSLO, open the deal ticket for your chosen market, select the direction of the trade you would like to place (either buy or sell) and enter your quantity.

1. To add a GSLO on Web Trader: Select the drop down arrow next to 'Stop-loss' to open the stops menu, then select 'Guaranteed stop loss' from the menu. Click the checkbox and ensure a tick is shown, then enter your stop distance in either price or points.
2. To add a GSLO on our mobile app: Toggle the 'Stop-loss' setting to be on, then tap 'Guaranteed' from the options shown (a thick border will be shown around the box when successfully selected). Then enter your stop-distance in either price or points.

Once you have filled in all the information for your stop order, click the ‘Place Trade’ button and your position will be opened with a GSLO attached.

Risk management is a crucial part of any trading strategy, especially when you are a less experienced trader. Trading the financial markets is similar to running a business and ensuring you have the right protection against losses is fundamental to ensuring you don’t lose too much too quickly.

GSLOs are particularly beneficial in volatile markets or at times of extreme volatility where there is a risk of the markets gapping. They can also help ensure that you don’t risk more than your initial deposit by capping any potential loss at a risk level set by you.

Additionally, when placing a guaranteed stop loss order, you are limiting your maximum risk, so we ask you for a lower margin. This frees up additional funds for you to trade with.

Our GSLOs are a cost effective way of managing your trading risk and with no premium to pay upfront you’ll have added peace of mind during times of volatility. You can attach a GSLO to a position in the knowledge that you will only pay a premium should the stop be triggered.

Our expanded GSLO offering now also covers more markets than ever before including major equities, indices, forex (FX) and commodities giving you more protection on a wider range of financial markets. If you already have an open position, you can add a new GSLO via the deal ticket in the trading platform and will still only pay a premium if your GSLO is triggered.

Guaranteed stop losses are most useful:

• If you're trading in volatile markets
• If you want access to higher leverage
• If you don't want to risk more than your initial deposit
• If the market is prone to gapping (remember, markets can gap both ways)

The cost of your GSLO is based on the size of the position you wish to cover. You will only pay a premium if your GSLO is triggered and this will appear on your next statement as a separate charge. The charge or premium you pay is calculated differently for different markets either as:

Number of points x quantity of your position (For example indices like Wall Street or Germany 40)

OR

Percentage x notional trade value(For example equities like Apple or Tesla)

Yes, you can add a GSLO to an existing position, or amend an existing stop that you have added. In order to do so, the market will need to be open at the time.

1. On Web Trader: Locate the 'Positions' tab, find the trade you wish to add or amend a GSLO on, select the down arrow next to the market name and choose 'Amend position' to launch the deal ticket. Under the 'Edit stop loss and take profit' section, choose 'guaranteed stop loss', tick the checkbox and enter your desired stop distance. To finish, click 'Update position'. A confirmation message will be shown on the deal ticket.
2. On the mobile app: Navigate to 'Portfolio' then 'Positions'. Tap the trade you wish to add or amend a GSLO on to open the deal ticket. Toggle the 'stop-loss' option to be on, select 'Guaranteed' and enter your desired stop distance. Tap 'Update trade' to finish. A confirmation message will be displayed.

There is no additional charge for adding a GSLO to an open trade.

Yes, you can change the level of a GSLO after placing a trade by opening your position and amending the price or quantity at which your GSLO will be triggered. You will not be charged for amending a GSLO on an open trade.

Yes, you can cancel any GSLO on your CFD trading account at any time, free of charge. Simply select the ‘amend position’ option from the menu and uncheck the guaranteed stop checkbox.

A Knockout is a limited-risk way to trade FX, indices and commodities, with a unique feature where the price moves one-for-one with the underlying FOREX.com price. The key features of a Knockout are:

Flexibility: Select a Knockout Level when you trade and get the flexibility to choose your own margin and maximum risk.

Protection: The Knockout Level you choose is guaranteed, which ensures that your position is closed automatically at 0 if the underlying market reaches the Knockout Level. This means you always know your maximum risk when you place a trade.

Transparency: The Knockout price is displayed at the time you place the trade – there are no hidden fees or costs.

Expiry: Knockouts have an expiry, but you can choose to close a position prior to the expiry date should you wish, for example to lock in profits. If your knockout level is triggered before the expiry date, the trade will be closed automatically for a loss.

For FX and indices Knockouts, positions are assigned a dynamic expiry date 12 months from the date of opening. Any positions held until expiry will be closed at 4PM EST on the expiry date. If the expiry date falls on a trading holiday, the position will be closed on the previous trading day (not business day).

For example, if you were to open an FX Knockout position on 1 June 2026, then your new expiry date would be 1 June 2027. If your position remained open until then, it would be closed automatically at 4 PM EST on 1 June 2027, or the previous trading day should that date fall on a trading holiday.

For Commodity Knockouts, market expiries are fixed regardless of when the position is opened and are based on the underlying futures market expiry date. The expiry date will be included in the Knockout market name.

Knockouts allow you to speculate on both rising and falling markets by taking an “UP” or “DOWN” position:

UP: If you think the price of the underlying market will rise, you will choose “UP” on your deal ticket (UP Knockout).

DOWN: If you think the price of the underlying market will fall, you will choose “DOWN” on your deal ticket (DOWN Knockout).

You can find the list of available Knockout markets in our Web Trader platform and mobile trading app, available for iOS and Android.

Select your chosen market to open a deal ticket. Choose “UP” or “DOWN” depending on your outlook and decide your knockout level before placing your trade.

To place a Knockout trade, you need to:

1. Choose a market to buy, for example:

• Select “Wall Street KO”, then choose “UP” if you think the market will rise
• Select “Wall Street KO”, then choose “DOWN” if you think the market will fall
  

2. Set your Knockout Level

• This is where your trade will automatically close if the underlying price is met
• For an “UP” Knockout market, the knockout level will be below the FOREX.com underlying “Ask” price
• For a “DOWN” Knockout market, the knockout level will be above the FOREX.com underlying “Bid” price
  

3. Check your Knockout Price

• This is the distance between the price of the underlying market at the time of placing the trade and the Knockout Level
• For an “UP” KO trade: FOREX.com underlying ‘Ask’ price - knockout level
• For a “DOWN” KO trade: knockout level - FOREX.com underlying ‘Bid’ price
  

4. Set your trade size in Quantity

• For FX this is the number of lots, where 1 lot = 10,000 units of the base currency of the underlying market
• For indices and commodities, this the amount per point, denominated in the currency of the underlying market
  

5. Add an associated order (optional)

• Choose a closing Stop or Limit Order to take profits automatically or manage risk
  

6. Check your required Premium

• This is the total margin of your trade – the amount of available equity you need to open a position
• It is calculated by multiplying the Knockout’s opening price by the size of the trade entered under ‘quantity’ – this figure is your maximum risk (the maximum amount you can lose on the trade, should the market move against you, and your knockout level is reached)
• This value changes on the deal ticket depending on what you enter. By adjusting your trade size and Knockout Level you will see that you can determine the margin of your trade
  

7. Check your percentage of available funds

• This is the percentage of funds available in your account taken up by the margin contribution for your KO trade
  

8. Place your trade

• Once you're happy with the details entered on the deal ticket, select 'Place Trade'.

Knockouts are available across a range of major FX, indices and commodities markets. You can view the full range of available markets in our knockouts market information or in our trading platform.

To open a position, you buy a Knockout. After launching the deal ticket for your chosen market, you can go long by buying an UP KO or short the underlying market by buying a DOWN KO.

You sell a Knockout to close an open position. You can use associated orders to attach a Stop/Limit to close any open position to take profits automatically or to manage risk.

The Knockout Level determines the value of your Knockout. The value of your Knockout is always the difference between the price of the underlying market and your Knockout Level. This ensures that your position is closed precisely when the price in the underlying market reaches your Knockout Level if a position moves against you.

You set your Knockout Level when opening a position. Each market has a minimum distance away from the underlying FOREX.com price, which you will see on the deal ticket.

If your Knockout Level is reached, your position is immediately closed at 0 ensuring that any losses are limited to the amount you were willing to risk when opening the position.

Once a position is opened the Knockout Level cannot be changed. To manage risk, you can either attach a stop order to an open position or close it and re-open a new position with the desired Knockout Level.

Maximum Risk is the total amount you can lose on the trade, if the market moves against you and your Knockout Level is reached. You have the flexibility to set the Maximum Risk on a Knockouts trade by choosing a Knockout Level and trade size when you place a trade.

You have the flexibility to adjust the amount of equity on your account to suit your needs. The margin requirement – the minimum equity you must have in your account – is always equal to the total value of your Knockout position. In other words, it’s the difference between the Knockout Level and the price of the underlying market multiplied by your trade size in amount per point, which means it fluctuates with the Knockout Price.

You can trade Knockouts on our Web Trader desktop platform, and mobile app available on iOS and Android.

Please ensure that you have the latest version of the apps downloaded to your device.

Knockouts are not available on our MetaTrader platforms.

You can find the full list of available markets under the ‘Knockouts’ tab under 'Browser Markets' (on Web Trader) or 'Markets' (on mobile app).

Alternatively, you can use the platform search bar and type in the Knockout market you are looking for, such as 'Wall Street KO'.

The price of a Knockout at any given time is the distance between the price of the underlying market and the knockout level. This means that they move in lockstep. For example, if the underlying price moves up one point, the price of the Knockout will move exactly the same amount. Once a Knockout trade is opened, the Knockout price mirrors the price of the underlying asset.

• For an UP KO trade: FOREX.com underlying ‘Ask’ price - Knockout Level
• For a DOWN KO trade: Knockout Level – FOREX.com underlying ‘Bid’ price

The profit or loss on a Knockouts trade is calculated by multiplying the difference between the opening level of the Knockout position and the closing price of the position by the trade size in amount/points

P&L = (Knockout closing price - Knockout opening price) x amount/points

The maximum size will vary by market, and is listed under the 'market info' section of each individual knockout market in the trading platform.

FOREX.com will periodically apply dividend adjustments to Knockouts Index positions, to take account of the ex-dividend adjustment to the underlying Index.

This ensures that there is no material impact to you, as, depending on the Knockout position you hold, FOREX.com will either credit or debit your account for the dividends paid out on the underlying Index.

In the case of ‘UP KO’ index positions, the dividend adjustment will be credited to your account; in the case of ‘DOWN KO’ index positions, the dividend adjustment will be debited from your account.

This process follows the existing dividend adjustment process applied to our standard CFD markets.

Knockout positions do not rollover. All Knockout positions are closed automatically in line with the settlement rules for each market.

You can keep your Knockout position open until expiry – unless the Knockout Level is reached, at which point your position will automatically close at 0 or until closing orders are triggered.

If your position is still open at the time of the market expiry, we will automatically close the position at the mid-price of the underlying market, and you will receive the profit or loss on that position.

For more details on the time of market expiry, please see the “Market Info” tab on our platforms.

You can see more detailed information about Knockouts on the 'market info' tab on our platforms and on the Market Information page.

We charge a spread when opening a position which also covers the protection of the guaranteed Knockout Level.

As with standard cash CFD trades, Knockouts positions on FX and index markets will also be subject to overnight financing charges on a daily basis. We use swap points to calculate the daily overnight financing adjustment amount for FX pairs. Financing on index markets uses (2.5% +/-) the underlying interbank rate and details can be found in the market info tab in the trading platforms, or by visiting our costs of trading page.

Commodity Knockout markets will not be subject to overnight financing.

Yes, you can trade Knockouts from the market chart.

You decide your Knockout strategy. Assume that Wall Street (FOREX.com equivalent price for the Dow Jones) is trading at a price of 39,025.5 and you believe that it is going to rise - you decide to buy an “UP” Wall Street KO. You Buy $5/point with a knockout level of 38925.5.

The opening price of the Knockout is 100, i.e. the distance between the price of the underlying market at the time of placing the trade and the Knockout Level.

The margin is calculated as follows:

Knockout opening price X Trade Size X 1.1

In this example, your margin requirement for Wall Street KO would be:

100 x $5 x 1.1 = $550

Scenario 1 - Closing your trade with a profit

Wall Street moves in your favour by 50 points to 39,075.5 and your Wall Street KO position increases in value by exactly the same amount to a price of 150.

You choose to take the Knockout profit by selling your Wall Street KO. Profit and loss for a Knockout trade is calculated as follows:

(Knockout Option closing price - Knockout opening price) x amount/point

In this scenario, the profit on your Wall Street KO would be:

(150 - 100) x $5/point = $250 profit

Scenario 2 - Closing your trade with a loss

Wall Street moves against you by 50 points to 38,975.5 and your Wall Street KO position decreases in value by exactly the same amount to a price of 50.

You decide to close the trade with a loss by selling your Wall Street KO. The loss on your trade would be:

(150 - 100) x $5/point = $250 loss

Scenario 3 - Your trade reaches the Knockout Level and is closed instantly

Wall Street moves against you by 200 points to 38,825.5 - below your knockout level - and your Wall Street KO position, moving in lockstep with the underlying market, decreases in value by exactly the same amount until it reaches 0. 

As you set your Knockout Level to 38,925.5, your trade was automatically knocked out (closed) when the underlying market reached this price, meaning you didn't incur any additional losses beyond this point despite the market price continuing to decrease.

In this scenario, the loss on your Wall Street UP KO would be:

(0 - 100) x $5/point = $500 loss

$500 is the maximum risk you determined when setting the knockout level and trade size when the position was opened. As you chose to trade Knockouts, which are limited-risk, you ensured that you couldn't lose more than your chosen maximum risk amount.

EUR/USD is trading at 1.1025 and you believe it is going to fall, so, you decide to buy the EUR/USD Nov 26 DOWN KO. You buy 5 lots (the equivalent to €50,000 of exposure, and a trade size of US$5/point) with a Knockout Level of 1.1325.

The opening price of the Knockout is 300 i.e. the distance between the price of the underlying market at the time of placing the trade and the Knockout Level.

The margin is calculated as follows:

Knockout opening price X Trade Size X 1.1

In this example, your margin requirement for EUR/USD KO would be:

300 x $5 x 1.1 = $1,650

Scenario 1 - Closing your trade with a profit

EUR/USD moves in your favour and drops by 300 pips to 1.0725. Your EUR/USD KO position increases in value by exactly the same amount to a price of 600.

You choose to take the Knockout profit by selling 5 lots of the EUR/USD KO. Your profit would be:

(600 - 300) x $5/point = $1500 profit

Scenario 2 - Closing your trade with a loss

EUR/USD moves against you and rises by 200 pips to 1.1225. Your EUR/USD KO position decreases in value by exactly the same amount to a price of 100.

You decide to close the trade with a loss by selling 5 lots of EUR/USD KO. The loss on your trade would be:

(100 - 300) x $5/point = $1000 loss