What are the general financial instrument trading conditions?
General Financial Instrument Trading Conditions
For full financial instrument trading terms and conditions, please refer to Instrument Specifications on our website.
Below, you can find some of the most important terms and conditions:
- The minimum investment amount is 10 USD.
- The maximum multiplier** a trader may use when trading the respective financial instrument.
- Transaction fee: A fee a trader is required to pay when opening a transaction.
In Libertex platform, the fee is floating.
The amount of the floating fee may change in accordance with the market spreads.
Minimum fees and commissions are detailed in the Instrument Specifications. When opening a position, you will be shown the commission as a percentage; after you close it, you will be able to view the commission amount, too, in the Trade History section.
As the maximum spread in the market is unlimited, the maximum commission, which is based on spread values, cannot be limited either.
- Rollover or SWAP is an interested rate credited on your account or debited from it everyday at 9 pm GMT, depending on the position type.
- Trading hours are the hours during which you can make transactions in the financial markets.
For your convenience, the platform has tips on trading hours for each instrument you trade or are going to trade. If you see a red circle next to the instrument name, this means the instrument is currently not available for trading.
*Commissions and amounts credited are calculated based on the multiplier value set by the client upon opening a position. Trading commission may be higher during high volatility or low liquidity periods for the particular asset. Please refer to the commission amount shown at the moment of making your transaction.
** Maximum multiplier value may be reduced during high volatility or low liquidity periods for the particular trading instrument.
How do I calculate my transaction's profit or loss?
To calculate your profit or loss for a Long trade, please use the following formula:
PL = S * M * ( Ec / E0 – 1 ) – C , where:
PL is your profit or loss
S is your investment amount
M is the multiplier value in use
Ec is the close price
Ec is the open price
C is commission charged for your transaction
To calculate your profit or loss for a Short trade, please use the following formula:
PL = S * M * ( 1- Ec / E0) – C
In case your current loss on a transaction reaches 100% (or 80% for stocks) of your investment amount, your transaction is subject to immediate closure. This is to ensure that your maximum risk is limited with your investment amount, i.e. your transaction will not affect your funds that are not invested in it.
Let's assume you have opened a long Dow Jones trade worth EUR 1,000 with multiplier at 10, at 15,345 and closed it at 15,515, your transaction fee being EUR 1.70, and the rollover fee at - EUR 3.80.
Thus, what we get is: 1,000 * 10 * ( 15,515 / 15,345 – 1) – 1.70 – 3.80 = 105.28.
Your transaction profit is EUR 105.28.
Now let's assume we open an identical trade, but a short one:
1,000 * 10 * (1 – 15,515 / 15,345) – 1.70 – 0.20 = -112.68
Here, your loss would be EUR 112.68.