Product guide Forex

Dealing hours

Forex markets are the most frequently traded and liquid markets in the world and offer trading up to 24 hours a day. Delta index opens from 7am till 9:15pm, Monday to Friday and we quote forex markets within these hours. These are summarised below. Note that times may be subject to change due to public holidays, daylight saving, emergencies etc. at the discretion of local exchanges. Delta Index will endeavour to inform clients of known changes to market opening hours in good time. All times are GMT, unless otherwise stated.

Range of markets

We quote a wide range of markets which continues to expand on a daily basis. If there’s a particular forex that you wish to trade but is not on the site, please contact us to request it. If there is reasonable liquidity in the underlying market we will add it within 48 hours. You can do this by calling our helpline on 0871 948 000 or sending an email to client@deltindex.com. A full list of current available markets is included below.

Types of contract

Futures contracts are based on the international futures market. The live price is taken from the relevant exchange on which the contract is traded. The contract will run until expiry date when clients have the option to ‘roll over’ (see below) the position, close it out, or leave it to expire.

Cash Rolling contracts are based on the spot price of the underlying forex cross. These contracts do not expire: positions will be automatically rolled over each night. A financing adjustment will be made to positions for every night they are held. Note that this can be positive or negative depending on the underlying interest rates of the forex in which the position is held.

Cash Daily contracts expire on the same day and may not be rolled over. These are based on the cash/spot price of the underlying forex. Expiry time varies depending on the individual contract. These are summarised below.

Spreads

Delta Index spreads vary per market. An entire list is available below.

Financing costs

Quarterly positions have financing adjustments built in to the price, as seen by the premium or discount the futures price holds against the cash price. This is based on the net cost of financing between the two forex in question. As a result, changes in interest rate differentials often drive movements in forex values.

Cash rolling positions will incur a financing adjustment as a debit or credit from or to client accounts. This is calculated as follows:

Overnight adjustment = (Closing Price * Stake * RFR) / 365
RFR = Relevant funding rate
RFR (long) = Interest rate forex 1 – Interest rate forex 2 – 2.5%
RFR (short) = Interest rate forex 2 – Interest rate forex 1 – 2.5%

Example:
AUD base rate: 5%
US base rate: 0.5%
AUD/USD Cash Rolling forex price: 6330
You have a long position on AUD/USD Cash Rolling for Euro10 per point RFR= 5% - 0.5% - 2.5% = 2%
Overnight adjustment = 6330 * 10 * 2%/ 365 = Credit Euro3.5

Therefore over a 1 year period you should expect to receive 2% of the value of the position in financing. Note that this will vary depending on expectations associated with future interest rate changes, among other things.

Expiry and rollover

Quarterly bets usually expire in the middle of March, June, September and December, in line with the international futures markets. Clients who wish to maintain their position into the following quarter may opt to ‘roll over’ their current open position. This may be done over the phone or online, any time before expiry, as long as the next calendar contract is available. There is a charge of half of the spread to do this. Positions that are not rolled over will be closed out at the expiry price. Rollover trades create a new contract; hence existing orders associated with the old contract will no longer apply. Unless you have agreed otherwise, a new automatic stop order will be created against the new position and all pending limit orders cancelled. Daily bets may not be rolled over. These will expire on the same day at the expiry time specified in the contract notes below. Rolling bets will remain open until the client closes the position or it is closed using a stop/limit order.

Margin and margin calls

There is a margin requirement associated with each individual forex contract. This is determined based on the volatility of the underlying market. At all times clients must have the required margin in their account to keep the position open. Margin requirement can be calculated as Margin * Stake. If this is not maintained the position may be closed on you. While Delta Index will endeavour to communicate with clients if margin thresholds are not met, fast moving markets may make this difficult and Delta Index will not be held responsible. It is the client’s responsibility to maintain enough funds in account to cover any margin requirements. For more information please refer to the Delta Index terms and conditions.

Bet size

Each market has an associated minimum and maximum stake allowed per trade. These are general guidelines and clients should note that larger sizes may be traded over the phone at the discretion of the dealer, depending on the liquidity of the underlying market.

Bet denomination

All stakes are in Euro and all profits/losses incurred are in Euro. This benefits clients who wish to trade markets outside of the UK (i.e. US or Japanese Forex), since positions remain in Euro, thus removing any forex exposure.

Spreads /Pricing

IMR: Initial Margin Requirement.

Please note: Spread information is indicative only. For up-to-date spreads on hundreds of markets please log on to our online trading platform.