What is Net Free Equity?

What is net free equity

Understanding Net Free Equity (NFE)

Net Free Equity (NFE) represents the available balance in a trading account after factoring in unrealised profits/losses, market values, and margin requirements. It is used to calculate interest on your main trading account.

How Is NFE Calculated?

• Value-dated cash balance from your main account, adjusted for sub-account balances in the same currency.

• Unrealised profits or losses from open CFDs, FX Forwards, and Futures across your main and sub-accounts in the same currency.

• Market value of FX Options held in your main account and sub-accounts.

• Margin deduction for financing open positions, regardless of sub-account currency.

Important Considerations

• Cash collateral for NFE margin financing may differ from trading margin requirements. Refer to the full list of accepted collateral in the General Business Terms.

• Maintaining a positive NFE is crucial to avoid overdraft interest on your account.

• Interest Calculation: Interest is calculated daily and settled monthly, typically within seven business days after the end of each month.

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