FAQ – FREQUENTLY ASKED QUESTIONS

The Islamic Account is a type of account provided by the best brokers to guarantee users of Islamic faith a trading activity in line with the rules laid down by the Sharia. According to Islamic law it is not possible to carry out financial activities that involve the collection of interest. For this reason the free-swap Islamic Accounts are designed to eliminate swaps and interest linked to trading activity and overnight fees.

ECN stands for Electronic Communication Network. An ECN account is a type of account offered by brokers through which it is possible to directly cross purchase orders and sell orders, as requested by the user. In these ECN accounts the broker’s role is limited, as it acts only as a mere intermediary, acting as a bridge to connect the trader directly to the financial market.

The economic calendar is a tool that collects and organizes, according to a chronological order, all the economic events that can prove to be of crucial importance for a specific market segment. For the trader it is a fundamental tool to refine their financial strategy.

The economic events included in the economic calendar are usually divided according to their relevance: main events, events of medium importance and events of low importance.

ETF stands for Exchange Traded Fund and identifies a fund that is traded on the stock exchange and which has the characteristic of replicating the performance of an index that invests in stocks, bonds or other assets. The primary goal of ETFs is to allow traders to invest in certain assets, such as stocks or bonds, by combining money with that of other investors.

The goal of the Stock indices is to synthetically provide the value of a group of stocks. Securities are usually grouped according to certain characteristics, such as the sector they belong to or their geographical location. In Italy the most famous index is the FTSE MIB which gathers the 40 companies with the greatest capitalization in our country. There are 3 types of stock indices in detail: value weighted, where the influence of a stock is proportional to the capitalization of the associated company (weighted average), equally weighted indices ,where all stocks have the same weight in the index (arithmetic mean) and price weighted, where the weight of the security is closely linked to its price.

The spread represents the difference between the BUY and SELL price of a particular instrument. In the world of Forex, brokers usually offer two types of spreads: fixed spreads and variable spreads. Fixed spreads, as the name suggests, have a fixed spread and the difference between the two prices remains constant. For variable spreads, the price difference is always fluctuating and therefore variable.

The overnight (or rollover) fees represent the interest that the trader pays when he keeps the position open overnight, i.e. when he does not close the intraday position. The overnight fee is usually calculated on the position value and is not calculated on Saturdays and Sundays (unless in cryptocurrency trading).