DNB FX Trader

All trades in financial markets carry a risk. Financial contracts for difference (CFDs) in currencies are especially risky as changes in currency prices may occur without the ability to predict these in advance.

You should not enter margin trades in DNB FX Trader unless you fully understand the risk this involves. If you are in doubt, you should seek independent and professional advice or refrain from trading with us. If margin trades in financial contracts for differences aren’t suitable for you on the basis of your knowledge and experience, you should refrain from trading.

Customers are classified as Professional and non-professional customers. As a professional customer or eligible counterparty, you can lose more than your deposit on a margin account, and you may be required to make additional deposits. If we have categorised you as a Non-Professional Customer, you cannot lose more than your invested capital.

Trading in currencies involves extremely high risk and is therefore not available to everyone.

In order to access foreign exchange trading, several requirements must be met. This includes the requirement of good knowledge of relevant markets and products, what exposure (positioning and trading) in such markets and products involves, as well as financial capacity.

When access to DNB FX Trader is granted, trading can only take place by logging in to DNB’s online bank, either from a computer or mobile. The functions that give you access to trading via mobile are not identical to functions on a computer. This may restrict the information you are able to see at a given time.

You can trade currencies in DNB FX Trader around the clock from Monday morning to Friday evening.

There are no direct costs associated with setting up agreements and access to the service.

Spread

Currencies are traded at an exchange rate, which is the price of exchanging from one currency into another. However, the price of simultaneous buying and selling a specific currency combination will be different. This difference is called spread. Spreads can be seen as the transaction costs in the currencies market, where both exchange rates and spreads vary continuously. The market situation and liquidity determine which spread is offered at any time. The spread also varies depending on trading history, whether the customer is professional or retail and the size of the position.

Rolling

Since all foreign exchange trading through DNB FX Trader is not based on physical delivery of currency, all open positions at day-end will be rolled over to the next day. The rolling costs are related to the interest rate differences in the different currencies, where you receive interest on the ‘Long’ position (the currency type you’ve bought) and pay interest on the ‘Short’ position (the currency position you’ve sold). The rolling costs are around 0.5-1 per cent p.a.

DNB will provide information on margins and costs related to each individual trade, as well as daily rolls

With DNB FX Trader, you can trade larger sums than the deposit in your margin account. This is often referred to as “gearing”. Gearing offers the chance of a greater return, but also involves significantly higher risk.

We recommend that the amount used to trade in foreign exchange only constitutes a very limited portion of your finances.

Example:

If you buy EURNOK, with a maximum gearing factor of 15, you’ll use the full gearing potential. In this case, you will place 6.67 per cent security for the currency position you take. This means that with a deposit in a margin account of NOK 500 000, you can take a position in EURNOK of up to NOK 7 500 000. Should an exchange rate change occur in EURNOK of just one per cent, this would produce a loss, or a gain, of 15 per cent of the deposit in the margin account, around NOK 75 000.

If the overall unrealised loss of your currency positions is higher than 50 per cent of the margin requirements, all of your open positions will be closed, active orders deleted and the unrealised loss realised. To prevent your positions from being closed as a result of the margin requirements, you must close or reduce your positions. Alternatively you may choose to add additional security to your margin account. Security can be added to your margin account via the online bank.

We will send you alerts if your margin requirements are breached, but you are responsible for monitoring all margin requirements regardless of whether you have received an alert from us or not.

Currency is always traded against another currency. For example, you buy Euro for Norwegian kroner (NOK). This makes the currency pair EURNOK. We offer 52 different currency combinations on the platform.

Below is a summary of the different currency combinations we offer in DNB FX Trader.

Currency is always traded against another currency. For example, you buy Euros for Norwegian kroner (NOK) through the currency pair EURNOK.

The platform has minimum trade amounts. The amounts vary for different pairs.

For the currency pairs EUR, USD, CHF, GBP against NOK, the minimum amount to buy/sell is 100 000, for example EURNOK 100 000.

In SEK and DKK against NOK, the minimum to buy/sell is 1 000 000.

Positions can be closed or opened through orders applicable to the service. Using orders can improve follow-up and control of the customer’s positions by limiting losses and securing profits. The order types available in DNB FX Trader are:

1. ‘Take profit’ - A ‘Take profit’ order is used to take profits on a position. A Take Profit order is an order to buy at a price lower than the current market price or sell at a price higher than the current market price.
2. ‘Stop loss’ - A ‘Stop loss’ order is used to limit losses on a position. A Stop Loss order is an order to buy at a price higher than the current market price or sell at a price lower than the current market price.
3. ‘One cancels the other’ - A ‘One cancels the other’ is two orders, in combination, where one order is cancelled when the other is executed. For example, a combination order with ‘Take Profit’/’Stop Loss’.

• AUD, CAD, CHF, DKK, EUR, GBP, HKD, JPY, NZD, SEK, SGD, USD, ZAR vs. NOK

• EUR vs. AUD, CAD, CHF, DKK, GBP, JPY, NOK, NZD, SEK, USD, ZAR

• CHF vs. JPY, NOK, SEK

• USD vs. CAD, CHF, DKK, HKD, JPY, NOK, SEK, SGD, ZAR

• GBP vs. AUD, CHF, JPY, NOK, SEK, USD