Product Overview

Important Notice

This product overview should be read in conjunction with our terms of service. Whilst every effort has been made to ensure the accuracy of the guide, this information is subject to change, often without notice and therefore is for guidance only. If you ever have any questions, please contact SGT directly.

Fees & Charges

Overnight Swap Fees on FX and Precious Metals

A swap charge is determined based on the interest rates of the countries involved in each currency pair and whether the position is short or long. In any one currency pair, the interest is paid on the currency sold and received on the currency bought.
Swap charges are released daily by the financial institutions we work with and are calculated based on prevailing market conditions. Each currency pair has its own swap charge and is measured on a standard size of 1.0 lot (100,000 base units).

Overnight Financing Costs on Equity Index CFDs

Cost of carry and dividends make up the overnight credits/debits. The value of these two variables is independent of one another. The overall credit/debit that is applied to your account will depend on the size of the open trade.

Cost of Carry

f = Overnight finance charges based on trade size
p = Closing price as determined by SGT
r = Relevant LIBOR rate +/- SGT margin for long or short positions
d = Number of days, i.e., 365 for GBP products and 360 for all others

And is calculated as follows: f = (s x p x r) / d

 

Example:

  • Client is long 10 lots of USA100.
  • Total finance charge is -0.56 (as displayed in the market watch window).
  • Client is a holder of this LONG position through 17:00 (New York Time, 00:00 SGT MT4 server time), there will be a charge of ($0.56 x 10) $5.60 for that trading day.

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Dividends

Applicable to most cash indices, dividend payments will be applied as debit/credit along with the rollover to your open positions. Adjustments will apply on the eve of the ex-dividend date of the constituent members of the relevant Index. The adjustment will appear as part of the roll over debit/credit.

When an equity goes ex-dividend, the price of that equity theoretically decreases by the dividend amount. In practice, this does not always happen as there are many market forces affecting an equity price. The amount of points an index cash CFD drops by is dependent on the weighting of the equity within the index. If more than one constituent equity of an index CFD goes ex-dividend on the same day, the amount of points each equity will theoretically cause the index to drop by is added together to calculate the total amount of dividend points or ‘drop points’.

These constituent stocks of an index will periodically pay dividends to shareholders, causing a drop in that stock’s price and impacting the overall value of the index. This price drop of the index will affect the PnL on an open index CFD trade to compensate this, and there will be a credit or debit that will be included in the cost of carry (swap) that is made at 00:00 server time.

If you have a long index position, your PnL will be negatively affected, so you will receive a credit in the same amount as the dividend adjustment.

If you have a short index position, your PnL will be positively affected, so you will receive a debit in the same amount as the dividend adjustment.

It’s an important to remember that index traders do not profit or lose from these adjustments. It is a zero-sum situation where any PnL change has a corresponding debit or credit to compensate. Please note, as dividends are combined with normal financing adjustments, the swap will not be the same as the dividend only.

 

Example:
You have a buy position on the USA500 contract of 10 lots. The next trading day, multiple companies go ex-dividend resulting in a 20-point drop in the USA500 at the open. The swap on this position will be credited $200 (20 points x $10 per point exposure).

The USA500 will open 20 points lower than it would have without the adjustment. As a result, the PnL on the buy position is $200 worse off, which was compensated for by the swap credit you received.
Where an index is a Total Return Index, dividend payments will not be credited/debited.

An example of a total return index is the DAX 30 where the cash disbursements are reinvested into the index.

 

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Cash Index Contract Expiration

All cash index positions will remain open until they are closed by the client, or the position is liquidated due to insufficient margin to support the open position.

Overnight Finance charges on Energy CFDs

Overnight credits/debits are applicable.

Overnight Finance charges on Crypto CFDs

Overnight credits/debits are applicable

Liquidation/Stop out Level

SGT has set the stop-out level to 70%. Stop out is triggered when your account equity drops below 70% of the margin needed to maintain your open positions, and positions will start to be liquidated (closed). The margin call % is 100%, where you receive the notification before stop out.

Margin Call: 100%
Stop-Out Level: 70%

Account Equity = Account Balance +/- unrealized profits/Margin Requirement < 70%

 

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Contract Specifications

Server times

Server time is set to GMT+2 when New York is observing Eastern Standard Time and GMT +3 when New York is observing Daylight Saving Time.

 

Trading Hours: Monday 00:00 until Friday 24:00, MT4 Server time.

 

Crypto instruments trade 24/7 with no break other than for scheduled maintenance.

Trade Size

The SGT MT4 platform only lets you trade in lots, also known as volume. You can place any size trade from your MT4 interface from 0.01 lots (1,000 base units) to 50 lots (5 million base units) in FX. The minimum deal size in Equity/Energy CFDs and cryptocurrency instruments is 0.01 lots.

MT5 offers the following trade sizes:

  • FX/Metals - 0.01 Lots
  • Equity/Energy CFDs - 0.01 lots
  • Crypto CFDs - from 0.0005 lots

Lot Size Examples

1 lot = 100,000 notional trading units (known as a standard lot)

0.1 lot = 10,000 notional trading units (known as a mini lot)

0.01 lot = 1,000 notional trading units (known as a micro lot)

Example
If you execute 1 lot of EUR/USD, then your exposure is 100,000 EUR/USD. If you execute 2.5 lots of GBP/USD, your exposure is 250,000 GBP/USD.

0.001 Lot in BTCUSD (At BTC price of $35,000), would equate to a notional position of 0.001*$35,000 =$35

Lot Size Examples

1 lot = 100,000 notional trading units (known as a standard lot)
0.1 lot = 10,000 notional trading units (known as a mini lot)
0.01 lot = 1,000 notional trading units (known as a micro lot)

E.g., if you execute 1 lot of EUR/USD, then your exposure is 100,000 EUR/USD. If you execute 2.5 lots of GBP/USD, your exposure is 250,000 GBP/USD.

 

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Margin Levels

Leverage on Minor and Exotic FX pairs

The following rules are applied to client accounts when taking positions that have the following currencies involved:

Majors (margin as per account setting)

AUD, CAD, CHF, EUR, GBP, JPY, NZD.

Minors 1 (2 times increase in margin requirement)

SEK, NOK
For example: USD/NOK, EUR/SEK, NOK/SEK etc.

Minors 2 (3 times increase in margin requirement)

CNH, DKK, SGD, HKD
For example: USD/DKK, EUR/HKD etc.

Minors 3 (6 times increase in margin requirement)

HUF, PLN, CZK, ILS, MXN, THB, RON, ZAR.
For example: USD/HUF, EUR/MXN etc.

Minors 4 (10 times increase in margin requirement)

RUB, TRY
For example: USD/RUB, EUR/RUB

 

Example

Margin used on a position of 1 Standard lot ($100,000) in USD/SEK when the account is on 400:1.

Leverage of 400:1 = 0.25% Margin Rate $100,000 @ 0.25% = $250. As this instrument involves SEK, there is a 2-times increase, which means the position would utilize 2 x $250 = $500, which represents 200:1 leverage.

If the same client traded a one Standard lot ($100,000) in USD/JPY, the margin used on this position would only be $250. i.e., 400:1.

Note: This 2-time increase applies to ALL Accounts. An account on 200:1 would receive 100:1 on the above example.

Leverage on Metals

The following rules are applied to client accounts when taking positions that have the following metals involved:

Gold (2 times increase in margin requirement)

XAU
For example: XAU/USD

Silver (3 times increase in margin requirement)

XAG
For example: XAG/USD

 

How is margin level calculated?

Margin is calculated two ways: Used Margin and Free Margin.

Used margin is the amount of money used to hold open positions.

Free margin is the amount of funds available to place additional positions.

Margin level is calculated by dividing the current equity in an account by the current amount of margin in use (used margin). After dividing the equity by the margin, move the decimal two places to the right. A trader whose equity is at $10,000 and who is using $5,000 of margin would divide 10,000 by 5,000 which of course equals 2. Then move the decimal two places to the right. Thus, the current margin level or percentage is 200%. At a 100% margin level a trader is essentially using his entire available margin.

Trades will automatically be closed to help ensure that a trader is not subject to losing more money than is held in his account at 70% level.

Margin Level Calculation = Equity*/ Used Margin
*(account balance considering ALL open positions)

 

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View product specifications for details of all products

Leverage on Equity Indices

Max leverage 100:1 (1%)

Leverage on Cryptocurrency

Max Leverage 5:1 (20%)

Margin Schedule based on Deposit Size

FX & Precious Metals Max Leverage
Up to 20,000 in Account Equity (USD)* 400:1
Up to 50,000 in Account Equity (USD)* 200:1
Up to 250,000 in Account Equity (USD)* 100:1
*Or the equivalent in EUR or GBP.

CFDs Fixed Max Leverage
Account Equity (USD) Equity CFDs 100:1
Account Equity (USD) Crude Oil & Natural Gas CFDs 50:1
Account Equity (USD) Crypto CFDs 5:1

For special terms and conditions, please contact support@sgt.markets.

Execution Fees

By Account Type

Basic

Basic Execution Fees
FX and Metals No commissions are charged on transactions in these accounts, only a small spread has been applied to the tradable rates.
Equity, Index and Energy CFDs No commissions are charged on (Equity, Index or Energy) CFDs on trades made from Basic accounts.
Crypto CFDs Commissions of 6 basis points (BPs) per side are charged on crypto trades in Basic accounts.

Active

Active Execution Fees
FX and Metals
1 Standard Lot roundturn commission (USD6, EUR6 or GBP6).
Commissions are charged in the currency of your account, and are based on the number of standard lots bought and sold.
When a fraction of a Standard Lot is traded, then the charge is levied on pro rata basis.
Equity, Index and Energy CFDs No commissions are charged on (Equity, Index or Energy) CFDs on trades made from Basic accounts.
Crypto CFDs Commissions of 6 basis points (BPs) per side are charged on crypto trades in Basic accounts.

Digital/Digital Pro

Digital/Digital Pro Execution Fees
FX and Metals
1 Standard Lot roundturn commission (USD5, EUR5 or GBP5).
Commissions are charged in the currency of your account, and are based on the number of standard lots bought and sold.
When a fraction of a Standard Lot is traded, then the charge is levied on a pro rata basis
Equity, Index and Energy CFDs
No commissions are charged on (Equity, Index or Energy) CFDs on trades.
Crypto CFDs
Commissions of 5 basis points (BPs) per side are charged on crypto trades.

Pro Trader and FIX API

Pro Trader and FIX API Volume Based Commissions Schedule $/million*
FX and Metals
< $100 million per month USD 30
$100 million to $500 million USD 25
$500 million to $1 Billion USD 15
> $1 billion USD 12
* or the equivalent for GBP or EUR-denominated accounts.
Trading more than $1billion? Please contact SGT to discuss commissions.
Equity, Index and Energy CFDs Commission charged on a $/million* basis charged against notional value of trade. See FX schedule above.
Crypto CFDs < $100 million per month 6 bps
$100 million to $200 million 4 bps
> $200 million 2 bps
* or the equivalent for GBP or EUR-denominated accounts.

Risk Warning

Trading contracts for difference (CFDs) and foreign exchange (FX) carries a high degree of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade CFDs, FX and/or other leveraged products you should carefully consider your investment objectives, level of experience, and risk appetite. You should be aware of all the risks associated with CFD, FX and other leveraged product trading and seek advice from an independent financial advisor if you have any doubts.

This product overview relates to margin FX contracts and CFDs, including, equity indices, energy, metals, and crypto products as provided by SGT.