Market Information

Find out more about trading terms, financing & commissions, margin requirements, deposit & withdrawals and trading conditions of instruments.

 

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TERMS

Tick Value is the cash value of one minimum price movement of the relevant market. Changes in account profit and loss, and margin are calculated based on the value of the tick.

Trade Size varies according to market conditions, equity balance and by market. The indicative minimum and maximum trading sizes per asset are included in the document as well as the size of a standard lot for each product. Trading in micro lots is allowed on the Standard Account.

Spreads on CSWAP’s trading platforms are among the most competitive in the market. CSWAP will ensure every effort to achieve the target and minimum spreads indicated in the information sheets. Spreads may vary and widen depending on the underlying market liquidity.

 

FINANCING & COMMISSIONS

 

Cost of Trades

If a client holds a position overnight (i.e. after closing at 2300 CET), including on weekends and public holidays, the Trading account will be debited or credited to cover the Cost of funding (Cost).

CFDs

When holding long (buy) trading positions on CFDs, clients will normally pay the Cost and therefore the trading account will be debited. When holding short (sell) trading positions on CFDs, clients will normally earn the Cost and therefore the trading account will be credited.

Forex CFDs

If a client is long the currency with the higher interest rate, the account will normally be credited the Cost. If a client is short the currency with the higher interest rate, the account will normally be debited the Cost.

Cost Charge Calculation–Forex CFDs

Swap rates are calculated using 1 day interest rate differentials for the two currencies that make up an FX pair.

Long Position Cost = Quantity x Swap rate x (-1)
Example:
Long 500,000 EUR/USD on EUR based account
Cost = 500,000 x (-0.000015) x (-1) = 7.50 USD
To convert to account currency: EUR/USD = 1.0690
Cost = 7.5 / 1.0690 = 7.02 EUR

Short Position Cost = Quantity x Swap rate
Example:
Short 100,000 GBP/USD on USD based account
Cost = 100,000 x (0.000029) = 2.9 USD

CSWAP applies a triple swap on Wednesday 2300 CET for weekend rollovers with some exceptions to this rule:

  • Triple swap rollovers are applied on Thursday 2300 CET for USD/CAD, USD/TRY and USD/RUB

 

Commissions–How it Works

For CFDs, clients will be charged a commission based on the size of trade per round trip.

Commission = Number of contracts x commission rate
Example:
Long 10 contracts of UKOIL
Commission rate = 10$ per round trip per contract
Commission = 10 x 10 = $100

 

MARGIN REQUIREMENTS

Trading CFDs on margin offers the opportunity to traders to only deposit a small percentage of the value of the trade. By leveraging trades, trading profit or losses are amplified compared to the potential return had they been required to invest the total face value.

Margin is provided by the trader before trades are executed and it is suggested that clients place additional margin to cover potential losses.

Margin limits the risk for both the client and the broker. It guarantees market participants are able to honour their obligation to the trade.

CSWAP Minimum Margin Requirements

With CSWAP, margin requirements may vary according to the product type.

CSWAP offers 1:50 leverage† on most of its CFD products which translates to a margin requirement of 2%.

Margin Calls

All CFD trades are monitored in real-time. Traders will receive a “Margin Call” if the equity on the trading account equals or falls below 50% of the margin used on the open trades. CSWAP will liquidate part of or all Open positions on the client’s account if the equity equals or falls below 20% of the used margin.

The Following is an example in real trading conditions of a Margin call.

Margin requirement depends on the leverage of the instrument – 1:50 or 1:100; and the USD value of the position.

For example, the USD value of a 100,000 AUD/USD (“Standard-Lot” or 1.0 Lot) position bought at price of 1.1000 will be:

  • 100,000 X 1.1000= USD110,000. With a margin requirement of 2.0% (1:50 leverage) The cost of this trade is USD2,200 to open the position.
  • As the AUD strengthens from 1.10 to 1.11 against the USD, the notional profit will be: 100,000 X 1.1100=USD111,000 less USD 100,000 X 1.1000=USD110,000 equal to USD1000.
  • As the AUD weakens from 1.10 to 1.09 against the USD, the notional loss will be:100,000 X 1.1000=USD110,000 less USD 100,000 X 1.0900=USD109,000 equal to USD1000.

In order to keep this position open, the trader must ensure that there are sufficient funds to cover marked to market losses.

In the example above each 1 point change in the price of AUD/USD results in a USD10 change in equity. If the client holds a losing position and the balance on the trader’s account reaches 50% of the margin used, the client receives a margin call. Here the margin call will be reached when the balance is USD1,100 (50% x 2,200 = USD1,100). The position is closed when the account reaches 20% of the margin used, USD440 (20% x 2,200 = USD440) in this example.

With the same example, and a margin requirement of 1.0% (1:100 leverage), the cost of this trade is USD1,100 (100,000 x 1.1000 = USD110,000 x 1% = USD1,100)

Margin call is at USD550 (50% x 1,100 = USD550)

Closure of trade is at USD 220 (20% x 1,100 = USD220)

Trading on margin involves substantial risk. CFD trading is highly speculative and may incur significant risk of loss; using a high degree of ‘leverage’ can work in your favour as well as against you due to fluctuating market conditions. Before engaging in trading using leverage, please make sure you have read and understood the rules and conditions.

† Leverage of 1:100 can be offered t professional clients upon request

 

DEPOSITS & WITHDRAWALS

Our focus is customer service and satisfaction, that’s why we provide simple, hassle-free withdrawal and deposit options.

All client funds deposited with CSWAP are fully segregated from the company’s own funds and are kept in separate bank accounts. This ensures that funds belonging to clients cannot be used for any other purpose. Our interim and annual financial reports are audited by Price Waterhouse Coopers, a leading global financial auditor, ensuring that our operations are conducted to the highest possible standards.

Compensation

CSWAP is a member of the Investor Compensation Scheme (ICS).

The Investor Compensation Scheme is a rescue fund for customers of failed investment firms which are licensed by the Malta Financial Services Authority. The Scheme can only pay compensation if a licensed investment firm is unable or likely to be unable to pay claims against it. In general, this is when the licensed firm stops trading or becomes insolvent. The Scheme is based on the EU Directive 97/9 on investor-compensation schemes.

More information about the Investor Compensation Scheme is available from www.compensationschemes.org.mt

 

TRADING CONDITIONS

To review the product spesifications please see the   trading conditions ▸

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Our CFDs are leveraged products which can carry a high level of risk to your capital and investing in them can result in losses that exceed your initial deposit. Investors do not own, or have any rights to, the underlying assets. These products may not be suitable for all investors. Please make sure that you fully understand the risks involved and seek independent advice if necessary.

ALB LIMITED
48, SIR AUGUSTUS BARTOLO STREET
CASA ROMA, TA’ XBIEX XBX 1099, MALTA