Examples of Index dividend adjustments
1. If you buy and hold 1 lot DJ30 cash index overnight with the dividend component of +20 USD, the account will be credit with 20 USD.
2. Conversely, if you sell and hold 1 lot SPI200 cash index overnight with the dividend component of -20 AUD, the account will be debit with 20 AUD.
Do I incur any losses during the oil rollover process?
The monetary impact is largely nullified, as the changes in values of the open positions, are offset by a debit or credit adjustment made to the account. It appears on your statement as 'Cash Adjustment-Rollover'.
Example:
CL-OIL futures (May contract) expires with the ask at $20,050 and bid at $20,000.
New CL-OIL futures (June contract) opens trading at ask $26,050 and bid $26,000.
One Standard contract size for CL-OIL is 1,000 barrels.
If you hold one lot of long CL-OIL, you will be charged (26,050-20,000) * $1,000 = -$6,050.
The 'Cash Adjustment- Rollover' is Dr -$6,050
If you hold one lot of short CL-OIL, you will be credited (26,000-20,050) * $1,000 = +$5,950.
The 'Cash Adjustment - Rollover' is Cr +$5,950
Examples of Forex Slippage
Say that the price of the AUD/USD was 0.9010. After analysing the market, you speculate that it's on an upward trend and long a one standard lot trade at the now current price of AUD/USD 0.9050, expecting to execute at the same price of 0.9050.
The market follows the trend but goes past your execution price and up to 0.9060 very quickly – within a second. Because your expected price of 0.9050 is not available in the market, you're offered the next best available price. For the sake of the example, that price is 0.9045. In this case, you would experience positive slippage: 0.9050 – 0.9045 = 0.0005, or +5 pips.
On the other hand, let's say your trade was executed at 0.9055. You would then experience negative slippage: 0.9050 – 0.9055 = -0.0005, or -5 pips.
It's important to note that slippage can occur with all types of requested orders including Stop Loss, Take Profit, Buy/Sell Stops and Buy/Sell Limit Orders. As AlphaTick uses market execution, we cannot guarantee such orders.
We operate under Market Execution and for this reason, we are unable to fill a Forex order that no longer exists. If your requested price is no longer available, your order will be filled by our FX liquidity providers at the going market rate.