Execution Method

Execution Method for Futures and differences versus CFDs

Open CFD positions and orders are always valued at the opposite price. A LONG position is valued at the selling price and a SHORT position is valued at the purchase price. With these courses the respective open positions can be closed.

An open SELL order is valued at the selling price and an open BUY order is valued at the purchase price. With these courses one enters the trade.

Contrary to this, the chart mode in CFDs classic way the BID price is the price, you can sell. If you add the spread to it, you get the ASK price.

At FUTURES, the so-called LAST rate comes into play, also in the chart. The last course is the last one to run a business. It is typically always between the current bid and offer price. Open future positions are always valued using the LAST COURSE, as are the open orders. This obviously leads to slippage for CFD customers who are not used to it. So if the MetaTrader5 rates an open position based on the LAST price with a 1 point gain and the client closes the position (but here with the bid price), then the position may go out with 0.0. This is not slippage but valuation differences. In fact, the position was rated LAST and closed with the MONEY course. The same applies to the LMT and STP orders, because they are also valued according to the last price and then sent to the stock market. Since there is the addition FOK = Fill or Kill in the LMT order, an attempt is made to execute until the desired price or better for the customer has been reached.

Why are these differences in futures:

Futures are products whose prices are determined on the stock market by means of supply and demand - different from CFDs, since the market maker determines the price. For illiquid futures, the bid and offer price may differ significantly from the last executed deal. If one carried out a valuation according to the money or ask price, then an open position would be torn down extremely because of the supply and demand situation, although the last executed courses "= load" does not deviate so strongly. Thus, a margin call could be provoked simultaneously and in the worst case, even all other positions on the account, including CFDs, can be compulsorily liquidated from the account.

To prevent such cases from happening, there is a "LAST valuation" in futures trading.


Trading Conditions of Eurex

Handelsbedingungen Eurex-20190502.pdf

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