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DNB Trade®

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FX Trading Conditions

Fixed Bid/Ask spreads on majors

DNB quotes prices based upon a fixed spread, which is defined as the spread between the Bid and the Offer (Ask). The spread on a particular currency pair that you see on your trading platform is the price and liquidity that is dedicated particularly to you - "what you see is what you get" concept.

Spreads depend on the currency pair and the desired trade amount.

Under abnormal market conditions such as just before and just after releases of key economic figures, during periods of volatile market conditions or at illiquid times, e.g. market opening, early Asian time zone, late New York time zone, during value date change, spreads may be wider than the announced fixed spreads.

Trade Ticket colours

The Trade Tickets in DNB Trade platforms are colour-coded to indicate the availability of the price:

If green quote is shown, order will be automatically executed for the price indicated. On rare occasions, order might be cancelled if price has changed significantly. DNB Trade color of Trade Ticket indicates availability of price shown:

  • Green - live streaming prices are available for auto execution
  • Yellow - prices are available on an RFQ (request for quote) basis. A dealer will manually quote the client, which makes the prices green and therefore tradable.
  • Purple - the market is closed (trading and RFQ not available).

Trade on Qoutes

The method used to execute Forex trades on a DNB Trade platform is to 'trade on quote'. "What you see is what you get".

When the "green" price is clicked the trade is executed on that particular price. In rare event the trade might be not executed if the price moves too much - either up or down - from the time the trade is placed, to the time when the request arrived at DNB, the trade request might be rejected. This goes for the scenario where the price has moved significantly against the client as well as movements significantly in favor of the client.

Trading on Bands

Different spreads are provided for different bands. The spread is tightest in the smallest band. For trade amounts above the largest bands prices, will be quoted manually on a request for quote basis (RFQ). Deep liquidity removes the delay and the need for manual intervention in the major and most commonly traded currency pairs.

Each time you trade, a reload period begins. If you continue to make consecutive trades in the same currency pair within the reload period, the spreads may widen beyond the fixed spread as your dedicated liquidity is reduced. After twenty (20) seconds with no new trading activity in the given currency pair, the reload period elapses, and full, dedicated liquidity and normal spreads are available again. If you trade more frequently than 20 sec. with same currency pair, spreads may widen more than indicated in price table.

Tom/Next Rollover

All open FX positions held overnight are subject to a debit or credit interest rate revaluation to reflect the position being rolled over to a new Value Date. The operation known as the Tom/Next Rollover is applied to spot positions held at 17:00 Eastern Standard Time (New York time) on any given trading day.

The ‘rollover’ is made up of two components, namely the tom/next swap points and financing of unrealised profits or losses. The accumulated combined rollover credit or debit is added/deducted from the previous opening price of the position.

Minimum trade size

For most currency pairs it is 5,000 units of the base currency, however variations occur. Precious metals can be traded as low as 1 ounce.

Trades cannot be executed below the Minimum Trade Sizes (except for closing an open position below the minimum trade size).

Full details can be found under Prices.

Forex trading hours

DNB Trade is open for Forex Trading from Monday morning 5:00 local Sydney time to Friday afternoon 17:00 Eastern Standard Time (New York time).

Some currency crosses, however, have special trading hours as seen in the table below.

Currency cross Trading hours
RON 08:15 to 17:00 CET
ILS 07:00 to 17:00 CET
SAR, AED 07:00 to 15:00 CET
RUB 07:00 to 16:00 GMT*
HRK 07:00 to 15:00 GMT
Metals (XAU, XAG, XPD, XPT)** 18:00 to 17:00 EST (New York time)

* In case no liquidity can be obtained in the market, these opening hours might be further reduced on a day-to-day basis.

** For all Metal crosses special opening hours apply on US national holidays to refl​ect the trading hours of the underlying futures market​.

Value Dates

Most FX spot positions have a value date of T+2. This means they settle two business days after the day of execution. There are some exceptions to this; USDTRY, USDRUB and USDCAD, which all have a value date of T+1.

At DNB Trade FX spot positions do not settle. Instead, open positions held at the end of a trading day are rolled over to the new spot value date as described under 'Tom/Next rollover'.

FIFO (First in, first out)

When netting open FX positions, DNB Trade uses FIFO rules, which means the first position you open is the first position to be closed.

Example: You are trading EURUSD opening the following positions:

  1. Buy 1M EURUSD
  2. Buy 3M EURUSD
  3. Sell 1M EURUSD
  4. Sell 2M EURUSD

Total: Long 1M EURUSD

  • The first long position 1) will net out with the first short position 3), 
  • The second long position 2) will net out with second short position 4), 
  • Leaving only one long position of 1M EURUSD at the end of the day. 

FX NOP Value

The FX NOP Value (Net Open Position Value) is the sum of all the short individual exposures for all currencies converted into the base currency of the account.

If your FX NOP value exceeds the FX NOP limit, you will only be able to place FX trades that close positions or reduce the FX NOP value. If you are in a breached status and attempt to trade over that limit an error message will inform you that the NOP limit has been breached.

The breakdown in single currency exposures used to calculate the FX NOP value, can be found on DNB Trade platform under "Account"- "Account Exposure".


FX Forward Outrights Trading Conditions

Choose your own value date

FX Forward Outrights are traded with a predefined value date in the future. You are able to select your preferred value date up to a year ahead on more than 115 currency pairs traded as FX Forward Outrights. You can select any value date not just standardised tenors.

Netting

Closed Forward Outright position are netted out when the value date of the position equals the current spot value date i.e. the position is changing from a forward to a spot.

When the value date on a not closed Forward Outright position equals the current spot value date, it will be subject to tom/next rollovers and will be treated as a normal spot position from that point onwards.

Risk warning

Forex is a margin product. Margin trading allows investors to buy and sell assets that have a greater value than the capital in their account. Margin Trading carries a high level of risk to your capital with a possibility to lose more than your initial investment.
Please read complete information on financial products and risk associated on this page.