Trading Conditions

iFOREX offers highly competitive conditions for leveraged margin trading of CFDs based on various underlying assets (“Underlying Assets”), including Currency pairs (Forex), Commodies, Indexes, Shares, ETFs and Cryptos (“Instruments” or “Financial Instruments” or “Leveraged Instruments” or “CFDs” as the context may be).

Spreads

The Spread is the cost of trading – it is the difference between the Sell (Bid) price and the Buy (Ask) price. For example, if the USD/JPY is trading at a sell price of 101.202 and a buy price of 101.222, the difference between these two prices is called the spread. In this case the spread is 2 pips.

Margin and Leverage

When trading Leveraged Instruments, while the “Margin” acts as collateral to cover any losses that you might incur, it also allows you to hold a position much larger than your actual account value, giving you the possibility to generate large profits relative to the amount invested.

Leverage is a double-edged sword and can dramatically amplify your profits, however it can also just as easily amplify your losses. When you use excessive leverage, losing trades can quickly offset many winning trades. Leveraged trading carries a high degree of risk and may not be suitable for all investors.

As an iFOREX account holder, you’re entitled to our Negative Balance Protection program, which means that you can never lose more than you deposited; nonetheless, a small market movement can result in a substantial loss of funds. Our Trading Platform automatically calculates your margin requirements before executing any order, and checks the level of available funds before any request to withdraw funds is made.

The margin requirements are relevant upon increasing Exposure in the account, either by opening/closing deals or by requesting to withdraw funds while having open positions in the account. The margin requirements reflect the potential risk in positions, based on volatility, liquidity and pricing availability, in any given asset.

Order types

Market orders

Market Orders (trade requests, e.g. Open Deal, Close Deal) are executed at the price that is in effect on the Company’s Trading Platform (client side) at the exact time of execution, provided that such price is within a predetermined tolerance level from the underlying price updated in the Company’s servers, and irrespective as to whether the underlying price is above or below the price updated in the Trading Platform (What You See Is What You Get, or WYSIWYG). In the event that the price updated in the trading platform (client side) exceeds the above tolerance level, for example, due to movements in the underlying assets between the time a client placed an order and the time it is received and executed, high market volatility and communication latency, the Order will be executed at the price updated in the Company’s servers, which shall be different from the price updated in the Trading Platform (Market Price), on a symmetrical basis. In the event of a substantial difference between the price updated in the Trading Platform (client side) and the price updated in the Company’s servers, the Order shall be rejected.

Limit orders

Limit Orders (future orders) are executed at the market price updated at the Company’s servers which may be different than the price indicated in the Order (“Slippage”). Slippage may occur in the event where the price indicated in the order is not available in the servers, for example, due to high volatility and gaps in the market prices. In such event, the order will be executed at the first available price, irrespective of the direction of the slippage, either to the client’s favor or not, in a symmetrical and transparent manner (Symmetrical Slippage).

Instruments that are not traded on a 24 hours basis (e.g. Shares, Indices and ETFs CFDs), may experience a market gap on a daily basis and are therefore more susceptible to slippage. It is important to note that slippage does not affect the Negative Balance Protection and therefore the Client will never lose more than the amount invested (including any profit, if gained), even if a slippage occurs.

Delays in execution

A delay in execution may occur for various reasons, such as technical issues with the Client’s internet, mobile or other communication connection to the iFOREX servers, which may result in “hanging orders”. A disturbance in the connection path can sometimes interrupt the signal and disable the platform causing delays in transmission of data between the trader’s platform and the iFOREX server.

Hanging orders

During periods of heavy trade volume or communication latency, hanging orders may occur, which means that a Limit Order has been placed, but it is simply taking a few moments for it to be confirmed/processed. During periods of heavy trading volumes or communication latency, it is possible that a queue of Limit Orders will form. That increase in incoming orders may sometimes create conditions where there is a delay in confirming/processing certain Limit Orders. In some cases, the position may in fact have been executed and the delay is simply in the client’s side display due to heavy internet traffic.

Keep in mind that it is only necessary to enter any order once. Multiple entries for the same order may slow or lock your computer or inadvertently open unwanted positions.

iFOREX’s Negative Balance Protection policy guarantees that the client’s losses are limited to the funds invested in the client’s account. According to this policy, the client shall never have to face a debit balance due to trade losses when trading with iFOREX and client’s potential loss shall be limited to the funds deposited in the Client’s account and to the funds gained by the client, if any.

Introduction

These Bonus Terms and Conditions are in regard to the Trading Bonus, including a Welcome bonus, Cashback Bonus and Trial Account Bonus offered by the Company (hereinafter called the ‘Bonus’), as detailed below, and is considered to be an integral part of the Company’s Terms and Conditions. All interpretation of terms included herein, are as interpreted in Company’s Terms and Conditions, which are available in Company’s website www.iforex.com.

Conditions of eligibility

Bonuses are available to Company clients who satisfy the eligibility criteria of the relevant offer, pass all required registration procedures according to Company requirements as amended from time-to-time at the sole discretion of the Company, and are approved by the Company as eligible clients (the ‘Eligible Clients‘).

The Company offers any Bonus at its absolute discretion, to any Client and/or country/region as it deems appropriate.

The Company reserves the right, at its sole discretion, to decline registration of any user, including Eligible Clients, in the Bonus and/or revoke the offer of any bonus at its absolute discretion.

Residents form restricted jurisdictions, including residents of the U.S.A, are not eligible for the Trading Bonus.

Trading Bonus

Subject to the General Terms hereunder, Trading Bonus is granted to Eligible Clients as a percentage of the amount of funds deposited in their trading account and/or otherwise as the Company may see fit at its sole discretion.

Trading bonus is designated for purposes of margin trading only, thus can only be used as extra margin (i.e. the Client will not be able to withdraw the Bonus granted) and shall not be allowed to be used for the purposes of trading in Non-leverages products.

The Trading Bonus is granted per each Eligible Client.

Welcome Bonus – is a trading bonus for 1st time depositors.

In cases where a trading bonus is given based on a deposit made into the account, the following condition/s apply.

In the case of a full withdrawal of equity – the entire trading bonus will be removed.

In the case of a partial withdrawal of equity – the amount of the trading bonus will be adjusted to a 20% of the equity that remains in the account following the withdrawal, or as otherwise decided by the Company, in its sole discretion, from time to time.

Example

Eligible Client agreed with the Company to receive 30% bonus on his deposit of $1,000. Eligible Client will receive extra Margin of $300 (i.e. 30% of his deposit) as Trading Bonus.

This bonus will reflect on client’s account as follows:

Trading bonus will not be available for withdrawal at any time whatsoever. Any profit made by utilizing the Trading Bonus may be withdrawn by the Eligible Client subject to the Company’s withdrawal policy and applicable law. The withdrawable profits made out of the Trading Bonus will be visible under the section “Balance” of the client’s account.

Example

Eligible Client agreed with the Company to receive 30% bonus on his deposit of $1,000. Eligible Client has the below Equity and Balance in his Account:

Scenario A

Client has requested to withdraw the full amount of his deposit ($1,000). Trading bonus will be entirely removed.

This will reflect on the client’s account as follows:

Scenario B

Client has requested to withdraw $800, therefore the client’s Equity was decreased to $200 and the Trading Bonus in this case is restricted to 20% of the Equity amount, i.e. $40.

This will reflect on the client’s account as follows:

All Trading Bonuses shall be cancelled if the account has remained inactive for 30 days.

Cash Back

The CashBack program credits Eligible Clients’ account with cash on a weekly basis according and subject to the volume achieved in that week and up to a certain amount as determined in advance by the Company (“Pending Bonus”).

The Pending Bonus amount may derive from a certain or a number of deposits, as a percentage of the value of the deposit, or determined at the Company’s sole discretion.

Example

An Eligible Client who deposited $1,000 was entitled to receive up to 40% of the value of his deposit as Cash Back for trading a volume of $20,000,000. Such client will receive $400 as Pending Bonus.

This Pending Bonus will reflect on Client’s Account as follows:

Each week, the Realized CashBack which is calculated according to the client’s weekly volume shall be deducted from the Total CashBack amount (Pending Bonus) and credited to the client’s account according to the ratio between the client’s actual weekly volume (in USD) and the required volume, as indicated in the trading platform. It is clarified that the client is only entitled to the Realized CashBack and the Pending Bonus is realized only after client completes the required volume. The CashBack amount (“Realized CashBack”) is limited to the Pending Bonus allocated to the client.

The volume is calculated on an ‘in and out’ basis, which means that the opening of a $1 million (or at another currency equivalent) position and the closing of the same position, count as $2 million (or at another currency equivalent) totals towards the client’s volume requirement.

Example

Scenario A

The Eligible Client in the previous example, was offered $100 Realized Cash Back for each $5,000,000 traded. After 1 week, he has achieved the $5,000,000 volume. Therefore $100 as Realized CashBack has been moved from Pending Bonus to Equity.

This will reflect on the client’s account as follows:

Scenario B

After 2 weeks from the deposit, the client has achieved $5,000,000 volume traded and made $300 of profits. Therefore another $100 as Realized CashBack has been moved from Pending Bonus to Equity.

This will reflect on the client’s account as follows:

After being credited to the Equity, the Realized CashBack will be available for trading or can be withdrawn by the Client at any time. Any profit made by investing the Realized CashBack amount may as well be withdrawn from the Eligible Client.

The CashBack promotion is time limited, and the Client receives Realized CashBack within the first 3 months from the day he was granted with the Pending Bonus. The client is Eligible for further CashBack, when he makes further deposits.

Example

The Eligible Client in the previous examples, decided to withdraw his $300 profits and the $200 Realized Cash Back amount received. Therefore he requested a withdrawal of $500 in total. The remaining $200 of Cash Back Bonus will remain as Pending Bonus in his account, therefore the client will still be able to keep on trading with $1,000 and has two and a half months left to convert the Pending Bonus into Realized CashBack.

This will reflect on the Client’s account as follows:

All CashBacks are given in the account’s currency.

Trial Account

Users may be provided with a trial account that includes a Trading Bonus (as explained above) of US $125 that can be used to trade, subject to the Company’s Trading Conditions.

The Trial Account shall expire and all pending transactions in the Trial Account shall be terminated within 3 days of the day of the first transaction made in the Trial Account (“Trial Period”). Any amount which exceeds US 25$ (“Profit”) may either be used as margin for the user’s trading account with the Company and/or for trading Non-leveraged products, subject to the user’s successful conclusion of the company’s registration process and a minimum deposit of US 100$, or may be withdrawn to a bank account under the user’s name. Please note that (i) withdrawals are subject to the Company’s withdrawal procedures and may further be subject to a transfer fee, and (ii) any Profit not withdrawn, or transferred to the trading account and used as margin for trading purposes and/or for trading Non-leveraged products no later than 14 days from the date of opening the first transaction on the Trial Account shall be revoked.

The Bonus is available only to clients registering with the Company’s platform for the first time and who have satisfied the eligibility criteria as described above. Only one Bonus is permitted per household/IP address. Clients who open more than one account, or who register multiple accounts from the same household/IP address, will be deemed to have violated these terms. In such cases, any Profit generated on all accounts — except for the first account registered from that household/IP address — will be canceled.

General terms

Any indication or suspicion, in the Company’s discretion, of any form of illegal, unfair and\or abusive trading methods or conducts (including but not limited to trading activity patterns that indicate an aim to benefit financially from the Trading Bonus without taking market risk and\or by opening, operating or managing more than one account per client) as well as any indication or suspicion of fraud, manipulation or a breach of the Company’s agreements, policies and conditions with respect to the Bonus Scheme will nullify all bonuses previously credited to the account and to any related account. Under such circumstances, the Company shall have the right, in its sole discretion and without derogating from its rights under its agreements with the client and applicable law, to nullify and cancel all transactions carried and/or profits or losses garnered therein and to block all relevant accounts and the Company shall not be liable for any consequences of any of the said actions.

Company reserves the right, as is in its sole discretion deems fit to alter, amend, suspend, cancel or terminate any of the above-mentioned Bonus, or any aspect of the above-mentioned offer, at any time.

The window displayed below provides detailed information related to the margin of an account:

• Total Equity reflects the real-time value of your account. It includes your Balance, Profit/Loss from open positions, and (if applicable) any Trading Bonus added to your account.
• Used Margin shows the amount of Total Equity in an account that is currently being used as Margin for your Open Deals. In the case where Used Margin is equal to or larger than the Total Equity, this indicates that the account’s leverage is maximized.
• Available Margin shows the amount of Total Equity in an account that is not currently being used and is available for further increase of net exposure. In the case where Available Margin is zero, this indicates maximum leverage usage in the account.
  Available Margin = Total Equity – Used Margin
• Margin Utilization shows the percentage of Total Equity that is being used as Margin for the currently Open Deals of the account. 100% Margin Utilization and above, indicates maximum leverage usage in the account.
  Margin Utilization % = (Used Margin/Total Equity) x 100
• Maintenance Margin is equal to 20% of the Used Margin required to maintain your open deals. If your Total Equity falls to or below this level, a Margin Close-out Protection (as defined below) will be triggered automatically.
  Maintenance Margin = Used Margin x a percentage (%) defined in the Trading Platform.
  iFOREX reserves the right, but is not obliged, to set and/or change Maintenance Margin, at its sole discretion.
• Exposure Coverage is the percentage of exposure that is covered by funds.
  It reflects the maximum change in market price against the direction of the open deals, which are supported by funds (until the Maintenance Margin is reached).
  Exposure Coverage = (Total Equity – Maintenance Margin) / Net Exposure

Margin Close-out Protection

Should a client’s Total Equity reach or fall below the Maintenance Margin level, iFOREX will auto close the deal that consumes the largest amount of Used Margin, in order to achieve the lowest possible Maintenance Margin, affecting only Open Deals on instruments available during their respective trading hours. Should there be no Open Deals at the time, the first instrument to receive a quote will be auto closed first. Where there are multiple deals (more than one) that equally consume the largest amount of Used Margin, the Company will auto close the deal that was opened first. In the event that the lowest possible Maintenance Margin cannot be achieved by the auto closing of a single deal, iFOREX will auto close all Open Deals under a specific instrument.

iFOREX allows clients the full use of unrealized profits from their Open Deals, in order to support their losing deals.

Margin Close-out Protection examples

For the purpose of the examples hereof, the Maintenance Margin = Used Margin x 20%

Example I: Multiple deals (without a Trading Bonus)

This example involves a client with multiple open deals. The account’s Total Equity drops to the Maintenance Margin level.

• Open deals:
  • 1 USD/JPY deal: Bought $200,000 at a rate of 150.22 (Used Margin = 0.25% x $200,000 = $500)
  • 1 Gold deal: Bought 100 ounces at a rate of 2,300.00 (Used Margin = 0.5% x 100 x $2,300.00 = $1,150)
  • 1 WTI Oil deal: Bought 500 barrels at a rate of 70.00 (Used Margin = 1% x 500 x $70 = $350)
• Total Used Margin: $500 + $1,150 + $350 = $2,000
• Maintenance Margin Level: $2,000 x 20% = $400

Process:

1. When the account’s Total Equity drops to or below $400, the system closes the deal using the highest Used Margin (Gold). This reduces the Used Margin to $850, lowering the Maintenance Margin to $170.
2. If Total Equity drops to or below $170, the system closes the USD/JPY deal, reducing Used Margin to $350 and the Maintenance Margin to $70.
3. Finally, if Total Equity falls to or below $70, the system closes the last remaining deal (WTI Oil).

Example II: Single deal (including a Trading Bonus)

This example involves a client with one open deal, a Trading Bonus, and Total Equity at or below the Maintenance Margin.

Deposit: $1,000 (with a 100% Trading Bonus)

Total Equity: $2,000

Open Deal: Bought $800,000 in USD/JPY

Used Margin: 0.25% x $800,000 = $2,000

Maintenance Margin Level: $400

Process: When deal Open P/L (Profit/Loss) falls to or below -$1,600, triggering a Total Equity level of $400, the system closes the only open deal.

Example III: Multiple deals (including Trading Bonus)

A client holds multiple open deals, with a Trading Bonus and Equity at or below the Maintenance Margin.

• Deposit: $1,000 (with a 100% Trading Bonus)
• Equity: $1,000
• Trading Bonus: $1,000
• Total Equity: $2,000
• Open Deals:
  • 1 USD/JPY deal: Bought $400,000 at a rate of 150.22 (Used Margin = 0.25% x $400,000 = $1,000)
  • 1 WTI Oil deal: Bought 1,000 barrels at a rate of 85.00 (Used Margin = 1% x 1,000 x $85 = $850)
• Total Used Margin: $1,000 + $850 = $1,850
• Maintenance Margin Level: $1,850 x 20% = $370

Process:

1. When Open P/L falls to -$1,630 or below, Total Equity reaches the Maintenance Margin Level of $370 and the USD/JPY deal is closed.
2. With the USD/JPY deal closed, Used Margin changes to $850 and the new Maintenance Margin Level is $170 ($850 x 20%).
3. If Total Equity falls to $170 or below, the system automatically closes the WTI Oil deal.

Maximum exposure

As a prudential measure aimed at better risk management and avoidance of excessive exposure to a single client, iFOREX has set a maximum net exposure limitation of up to 15 (fifteen) million US dollars per client. iFOREX had also set a maximum net exposure for per instrument. To view the maximum exposure per instrument click here. iFOREX has the right, at its sole discretion to cancel or change such a limitation at any given moment without any prior notice.

Hedging

Hedging is defined as the opening of two Transactions on the same instrument or underlying asset at different directions (one “buy” and the other “sell”), whether or not at the same time and whether or not for the same quantity. iFOREX considers hedging transactions for the purpose of calculating the minimum margin on a cumulative basis or on a “net” basis. Furthermore, iFOREX considers the closing of one of the hedged Transactions as the opening of a new Transaction which amount’s equals to the amount of the remaining Transaction.

Netting of transactions

In the case where more than one deal needs to close simultaneously in an account, iFOREX will close all open positions as a bulk. The transaction number assigned on each closed position is set based on FIFO rules. This means that upon the closing of the positions, the first position opened will receive the lowest transaction number and the last position opened will receive the highest transaction number.

Unauthorized trading practices

iFOREX supports fair trading and does not allow practices which exercise abusive trading such as lag trading, price manipulation, time manipulation or any other practices which are illegal and/or are utilized to give the Client an unfair advantage. Examples for such forbidden practices can be, but not limited to, any of the following:

• Scalping is a trading strategy that attempts to exploit small changes in prices. Traders who implement this strategy will create many short-term positions, usually closing them within seconds or minutes.
• Automation (e.g. EAs) or algorithmic trading is the use of electronic platforms for entering trading orders with an algorithm which executes pre-programmed trading instructions whose variables may include timing, price, or quantity of the order, or in many cases initiating the order by a “robot”, without human intervention.
• API trading is an application programming interface refers to all trading that uses a software program to interact with other programs. The API acts as the middleman between the trader and the market, relaying orders and retrieving information as needed.
• ‘Multiple accounts’ refers to the situation whereby one client sets up two or more accounts in order to disingenuously receive multiple account-related benefits from iFOREX.

Where the Company has any indication or suspicion, at the Company’s sole and absolute discretion, of any form of an exploitation, illegal, unfair, unauthorized and/or abusive trading practices, utilized to give the Client an unfair advantage, and/or of fraud, manipulation or breach of the Company’s agreements, policies, terms and conditions, the Company shall have the right, at its sole and absolute discretion, and without derogating from its rights under its agreements with the client and applicable law, to nullify and cancel all transactions carried in relevant accounts, including all profits or losses generated therein, remove any bonuses granted to the client and/or block the account.

Errors in rates

Online trading technology is not perfect and in rare cases, the feed can be disrupted. This may only last for a moment, but when it does, prices can often become affected. While it may be tempting to place an “arbitrage transaction”, keep in mind that in such situations, the prices do not reflect the true market price and your actual fill may be many pips away from the displayed price. In the event that trades are executed at prices not actually offered by iFOREX, iFOREX reserves the right to reverse such trades as they are not considered valid trades. Keep in mind that these instances are usually rare, and by not trading during these moments, traders can avoid the risk associated with the above scenarios.

Vault

This feature enables clients to exclude funds available in their account without such funds being affected by the account’s trading activity and, subject to a client’s discretion, may be restored at any given time to support the account’s trading Margin requirements. The use of Vault will be permitted to clients of the Company, subject to its sole discretion. Where Vault is made available to clients use, the following terms will apply: (i) bonuses granted by the Company cannot be allocated to Vault; (ii) restoration of funds back to client’s account will be made in accordance with the sums as originally were allocated to Vault, but not the entire accumulated sums at once (e.g. if a client allocated $50 and then another $100 to Vault, the client will not be able to restore USD 150 at once, rather the different amounts separately, as originally allocated); (iii) should an account become inactive, all funds available in Vault will be restored by the Company automatically to the Equity of the account and Inactivity Fees will be deducted in accordance with the terms of section 13.3 of the Client Agreement; (iv) the Company reserves the right, as it may see fit, to deny the use of Vault, to change and update its terms of use, and to cancel it.

Inactivity fee

Clients’ accounts in which there have been no trading activity for a period of twelve (12) consecutive months may be charged with a quarterly inactivity fee of US$15 or the account’s entire Equity if the Equity is less than US$15.

Currency conversion fees

Trading Financial Instruments in a different currency to the client’s trading account currency may expose said client to currency conversion fees.

Funding or withdrawing funds from a trading account using a credit card in a currency other than the trading account currency may be subject to conversion fees charged by the client’s credit card company.

Unavailability and inaccessibility of trading services from certain Restricted Countries

The trading platform and/or trading services will not be made possible or available from certain Restricted Countries including, without limitations to, the USA. For further information regarding limitations on the use of, or of the accessibility to, Company’s services or website from certain Restricted Countries, including the list of the Restricted Countries, kindly click here.

For more information about trading, see our Client Agreement.

When trading leveraged Forex CFDs with iFOREX, your open deals are subject to Overnight Financing at the end of each trading day. This Overnight Financing may be subject to credit or debit, calculated on the basis of the relevant interest rates for the currencies in which the underlying instrument is traded, plus a mark-up. The mark-up for currency pairs starts at 0.75% and can be higher as well as differ between Long (Buy) and Short (Sell) positions. Please review the below table for the latest Overnight Financing levels.

If the calculated Overnight Financing Percentage is positive, it means that an applicable amount will be added (credited) to your account balance. A negative Overnight Financing Percentage means that an applicable amount will be subtracted (debited) from your account balance.

You can find the relevant Overnight Financing percentage, amounts and their related running times on both the Deal and Limit forms, under Tools, within the ‘Market Info’ tab. To calculate the Overnight Financing, which your account will be debited or credited with, simply multiply the Overnight Financing percentage with the size of your deal. The running time of the Overnight Financing process for each CFD is detailed in the deal form’s ‘Instrument Info Tool’ under “Overnight Financing (GMT)”. The calculated value and percentage of an instrument’s Overnight Financing applies for 1 day. CFDs that are traded 5 days a week will be credited or debited with a value 3 times the displayed value during the last day of its underlying asset trading week, as it covers the entire weekend period. The Overnight Financing amount is quoted according to the currency of the CFD. However, should the quoted CFD’s currency differ from the account currency, it will be converted to the account’s currency.

Formula

Calculation of Overnight Financing Percentage when you Buy (Long Positions):

Calculation of Overnight Financing Percentage when you Sell (Short Positions):

To calculate the Overnight Financing Amount, simply multiply the percentage by the deal amount:

Overnight Financing Amount = Deal Amount × Overnight Financing Percentage

Examples

Example I

This example involves a situation whereby the Interbank Rate difference is HIGHER than the markup. In such cases, your account will be debited when you go Long and credited when you go Short:

• Instrument = EUR/USD (Euro vs. US Dollar)
• EUR (base currency) Interest rate (annualized) = -0.37% = -0.0037
• USD (other currency) Interest rate (annualized) = 1.08% = 0.0108
• Interbank Rates difference = 1.45% = 0.0145
• Long Markup = 0.75% = 0.0075
• Short Markup = 0.75% = 0.0075
• Deal Amount value expressed in the other currency = 106,550 USD (100,000 EUR at Current Closing Rate of 1.0655)

Overnight Financing Percentage when you Buy (Long Positions):

Overnight Financing Amount = 106,550 × (-0.0000611) = -6.51 USD, meaning 6.51 USD charge per day

Overnight Financing Percentage when you Sell (Short Positions):

Overnight Financing Amount = 106,550 × 0.00001944 = 2.07 USD credit per day

Example II

This example involves a situation whereby the Interbank Rate difference is HIGHER than the markup and the Long and Short markups are different. In such cases, your account will be debited when you go Long and credited when you go Short:

• Instrument = EUR/TRY (Euro vs. Turkish Lira)
• EUR (base currency) Interest rate (annualized) = -0.37% = -0.0037
• TRY (other currency) Interest rate (annualized) = 22.75% = 0.2275
• Interbank Rates difference = 23.12% = 0.2312
• Long Markup = 0.75% = 0.0075
• Short Markup = 14.00% = 0.14
• Deal Amount value expressed in the other currency = 620,000 TRY (100,000 EUR at Current Closing Rate of 6.2000)

Overnight Financing Percentage when you Buy (Long Positions):

Overnight Financing Amount = 620,000 × (-0.000663) = -411 TRY, meaning 411 TRY charge per day (≅80 USD)

Overnight Financing Percentage when you Sell (Short Positions):

Overnight Financing Amount = 620,000 × (0.000253) = 157 TRY, meaning 157 TRY credit per day (≅30 USD)

Example III

This example involves a situation whereby the Interbank Rate difference is LOWER than the negative markup. In such cases, your account will be debited when you go Short and credited when you go Long:

• Instrument = USD/JPY (US Dollar vs. Japanese Yen)
• USD (base currency) Interest rate (annualized) = 1.08% = 1.08
• JPY (other currency) Interest rate (annualized) = -0.09% = -0.0009
• Interbank Rates difference = -1.17% = -0.0117
• Long Markup = 0.75% = 0.0075
• Short Markup = 0.75% = 0.0075
• Deal Amount value expressed in the other currency = 10,341,000 JPY (100,000 USD at Current Closing Rate of 103.41)

Overnight Financing Percentage when you Buy (Long Positions):

Overnight Financing Amount = 10,341,000 × 0.00001167 = 120.65 JPY credit per day (≅1.1 USD)

Overnight Financing Percentage when you Sell (Short Positions):

Overnight Financing Amount = 10,341,000 × (-0.0000533) = -551.52 JPY, meaning 551.52 JPY charge per day (≅5.3 USD)

When trading Index, Commodity and Crypto CFDs with iFOREX, your open deals are subject to Overnight Financing at the end of each trading day. This Overnight Financing may be subject to credit or debit, calculated on the basis of the relevant interest rates for the currencies in which the underlying instrument is traded, plus a mark-up. The mark-up for Cryptocurrencies can be significantly higher due to Cryptocurrencies’ extreme market conditions. Please review the below table for the latest Overnight Financing levels.

If the calculated Overnight Financing Percentage is positive, it means that an applicable amount will be added (credited) to your account balance. A negative Overnight Financing Percentage means that an applicable amount will be subtracted (debited) from your account balance.

You can find the relevant Overnight Financing percentage, amounts and their related running times on both the Deal and Limit forms, under Tools, within the ‘Market Info’ tab. To calculate the Overnight Financing, which your account will be debited or credited with, simply multiply the Overnight Financing Percentage with the size of your deal. The running time of the Overnight Financing process for each CFD is detailed in the deal form’s ‘Instrument Info Tool’ under “Overnight Financing (GMT)”. The calculated value and percentage of an instrument’s Overnight Financing applies for 1 day. CFDs that are traded 5 days a week will be credited or debited with a value 3 times the displayed value during the last day of its underlying asset trading week, as it covers the entire weekend period. The Overnight Financing amount is quoted according to the currency of the CFD. However, should the quoted CFD’s currency differ from the account currency, it will be converted to the account’s currency.

Formula

Calculation of Overnight Financing Percentage when you Buy (Long Positions):

Calculation of Overnight Financing Percentage when you Sell (Short Positions):

To calculate the Overnight Financing Amount, simply multiply the percentage by the deal amount:

Overnight Financing Amount = Deal Amount × Overnight Financing Percentage

Examples

Example I

This example involves a situation whereby the Interbank Rate is HIGHER than the markup. In such cases, your account will be debited when you go Long and credited when you go Short:

• Instrument = Brazil Ibovespa
• Brazilian Real (BRL) Interest rate (annualized) = 9.567% = 0.09567
• Markup = 2.5% = 0.025
• Deal Amount value expressed in currency = 127,380 BRL (2 Index contracts at Current Closing Rate of 63690 BRL per contract)

Overnight Financing Percentage when you Buy (Long Positions):

Overnight Financing Amount = 127,380 × (-0.0003351944) = -42.70 BRL, meaning a 42.70 BRL charge per day (≅13.58 USD)

Overnight Financing Percentage when you Sell (Short Positions):

Overnight Financing Amount = 127,380 × 0.00019630556 = 25 BRL credit per day (≅7.95 USD)

Example II

This example involves a situation whereby the Interbank Rate is LOWER than the markup. In such cases your account will be debited each night regardless of the direction of your position:

• Instrument = Oil (Crude Light WTI)
• US Dollar (USD) Interest rate (annualized) = 1.08% = 0.0108
• Markup = 2.5% = 0.025
• Deal Amount value expressed in currency = 53,250 USD (1,000 Oil barrels at Current Closing Rate of 53.25 USD per barrel)

Overnight Financing Percentage when you Buy (Long Positions):

Overnight Financing Amount = 53,250 × (-0.00009944) = -5.30 USD, meaning a 5.30 USD charge per day

Overnight Financing Percentage when you Sell (Short Positions):

Overnight Financing Amount = 53,250 × (-0.00003944) = -2.10 USD, meaning a 2.10 USD charge per day

Every CFD that is based on future contract (i.e. commodities and indices) has a rollover date.

Upon reaching the relevant instrument’s rollover date, all open future contract CFD positions will be rolled-over to the next contract, so that the positions remain open with the new future contract.

Upon effectuating such rollover, the Position’s open P/L (Profit / Loss) will express the price difference between the expired and new contract prices, as well as include a mark-up spread. All the associated Limit Orders levels shall be automatically adjusted according to the new future contract price.

For example, if the last price of the WTI Oil February contract is $50.125 and the market price of the following contract (March) at that time is $50.805, then the price level of all the outstanding limit orders will be updated upwards by $0.68.

When trading Share and ETF CFDs with iFOREX, your open deals are subject to Overnight Financing at the end of each trading day. This Overnight Financing may be subject to credit or debit, calculated on the basis of the relevant interest rates for the currencies in which the underlying instrument is traded, plus a mark-up. Please review the below table for the latest Overnight Financing levels.

If the calculated Overnight Financing Percentage is positive, it means that an applicable amount will be added (credited) to your account balance. A negative Overnight Financing Percentage means that an applicable amount will be subtracted (debited) from your account balance.

You can find the relevant Overnight Financing percentage, amounts and their related running times on both the Deal and Limit forms, under Tools, within the ‘Market Info’ tab. To calculate the Overnight Financing, which your account will be debited or credited with, simply multiply the Overnight Financing Percentage with the size of your deal. The running time of the Overnight Financing process for each CFD is detailed in the deal form’s ‘Instrument Info Tool’ under “Overnight Financing (GMT)”. The calculated value and percentage of an instrument’s Overnight Financing applies for 1 day. CFDs that are traded 5 days a week will be credited or debited with a value 3 times the displayed value during the last day of its underlying asset trading week, as it covers the entire weekend period. The Overnight Financing amount is quoted according to the currency of the CFD. However, should the quoted CFD’s currency differ from the account currency, it will be converted to the account’s currency.

Formula

Calculation of Overnight Financing Percentage when you Buy (Long Positions):

Calculation of Overnight Financing Percentage when you Sell (Short Positions):

To calculate the Overnight Financing Amount, simply multiply the percentage by the deal amount:

Overnight Financing Amount = Deal Amount × Overnight Financing Percentage

Examples

Example I

This example involves a situation whereby the Interbank Rate is HIGHER than the markup. In such cases your account will be debited when you go Long and credited when you go Short:

• Instrument = Gazprom (GAZP)
• Russian Ruble (RUB) Interest rate (annualized) = 9.5% = 0.095
• Markup = 5% = 0.05
• Deal Amount value expressed in currency = 2,459,000 RUB (20,000 Shares at Current Closing Rate of 122.95 RUB per share)

Overnight Financing Percentage when you Buy (Long Positions):

Overnight Financing Amount = 2,459,000 × (-0.0004) = -983.60 RUB, meaning a 983.60 RUB charge per day (≅17.52 USD)

Overnight Financing Percentage when you Sell (Short Positions):

Overnight Financing Amount = 2,459,000 × 0.000125 = 307.38 RUB credit per day (≅5.48 USD)

Example II

This example involves a situation whereby the Interbank Rate is LOWER than the markup. In such cases, your account will be debited each night regardless of your position’s direction:

• Instrument = Apple (AAPL)
• US Dollar (USD) interest rate (annualized) = 1.08% = 0.0108
• Markup = 5% = 0.05
• Deal Amount value expressed in currency = 70,600 USD (500 Shares at Current Closing Rate of 141.20 USD per share)

Overnight Financing Percentage when you Buy (Long Positions):

Overnight Financing Amount = 70,600 × (-0.000169) = -11.93 USD, meaning a 11.93 USD charge per day

Overnight Financing Percentage when you Sell (Short Positions):

Overnight Financing Amount = 70,600 × (-0.000109) = -7.70 USD, meaning a 7.70 USD charge per day

In the event of a distribution of cash dividends in relation to a share CFD, a dividend adjustment will be made to the Client’s Balance with respect to the underlying share CFD positions held by the Client at the end of the business day preceding the ex-dividend date. The dividend adjustment shall be calculated based on the size of the dividend, the size of the Client’s position and whether it is a buy or a sell transaction. In long positions the adjustment shall be credited to the Client’s Balance and in short positions the adjustment shall be debited from the Client’s Balance. Dividends shall be credited or debited from the Client’s Balance outside of the underlying shares’ trading hours and before the opening of the shares’ next trading day and are contingent upon the Client holding their respective position at the time of the dividend adjustment. During this period, in order to keep the fair value of the Client’s Equity until the opening of the next trading day, the Company shall adjust the Client’s position in accordance with the dividend amount debited or credited from the Client’s Balance.

Example:
Coca-Cola issues a dividend of 0.35 USD per share.
The Ex-Dividend date is November 29th and the settlement date in iFOREX is November 28th at 22:05 GMT.
The closing price before the settlement is 41.65.
A client that holds a Long position of 5,000 shares will be credited with 0.35 x 5,000 = 1,750 USD if his deal is open at the settlement date.
If the client holds a Short position, similar amount will be deducted from the Balance of the trading account of such client.
The share price will be adjusted, during the afterhours, from 41.65 to 41.30, which equals to the last share price minus the dividend amount.

Corporate Actions are certain events that effect a public company’s share value. Unless mentioned otherwise hereunder in respect of specific Corporate Actions, upon the occurrence of a Corporate Action in a specific share, iFOREX shall liquidate any open position(s) of the relevant CFD(s) including, where required, the removal of any limit order(s) of such CFD(s).

Corporate Actions in iFOREX include Rights Offering, Delisting and any other event which materially affects or may materially affect the shares’ price (including material company announcements, takeovers, mergers, insolvency etc.).

Stock Dividends
Stock Dividend on-exchange do not alter the total value of stocks for those who hold them but rather change the number of stocks and their price.
You will receive the “Adjustment Factor” for each share held.
Any of your open deal(s) and/or limit(s) during the Stock Dividend date and time, will have its amount, rate, and associated limit(s) adjusted accordingly (including the account balance due to any required P/L adjustments, if applicable). For example, in a Stock Adjustment with an Adjustment factor of 1.8 then 1 stock becomes 1.8 stocks after the event and the price is divided by 1.8, leaving the overall value of shares unchanged.
E.g., 1 stock priced at $1,000 will become 1.8 stocks priced at $555.56 after the event: 1x $1,000 = 1.8 x$555.56 = $1,000 value

Stock Splits and Reverse Stock Splits specific rules
Stock splits and reverse stock splits on-exchange do not alter the total value of stocks for those who hold them, but rather change the number of stocks and their price. These splits are usually implemented when the stock price is either too high or too low. Should an open deal/limit encounter a stock split, its amount, rate and associated limit(s) level will be adjusted accordingly (including the account’s balance, due to required PL adjustments, if applicable).

For example, in a 1:10 split, 1 stock becomes 10 stocks after the event and the price is divided by 10, leaving the overall value of shares unchanged. E.g., 1 stock priced at $1,000 will become 10 stocks priced at $100 after the event: 1x $1,000 = 10 x $100 = $1,000 value.

Please find below a list of the upcoming Corporate Actions:

An earnings report is a periodic filing made by public companies to report their performance. By analyzing quarterly earnings reports, investors can analyze the financial health of the company. The announcement of earnings for a company, particularly for a popular company with a high market capitalization, can affect its share prices, which can cause it to fluctuate widely on days when such quarterly earnings reports are released.

For that reason, maximum exposure of the relevant shares will be lowered to $10,000 throughout the period of publication.