Overnight and Weekend Margin for CFD Trading
CoinUnited.io offers CFD trading on a variety of traditional markets (stocks, indices, forex, commodities). Unlike crypto perpetual contracts, these traditional markets have distinct trading sessions and closure periods (e.g., weekends, holidays).
To manage the additional risk of holding positions outside active market hours, CoinUnited.io employs different margin requirements at three key times:
1. Intraday (active trading hours)
2. Overnight (positions held beyond the daily close when the market will reopen the next trading day)
3. Weekend & Holiday (positions held when the market is closed for multiple days or official holidays)
Important: Both Overnight and Weekend/Holiday margin rules take effect 15 minutes before the market’s official closing time—whether it’s a normal weekday close, a close before a holiday, or the final close before the weekend.
1. Intraday Margin
• Definition: Intraday refers to the active trading session of a given market.
• Leverage: Typically higher leverage (lower margin requirements) is available during active hours.
• Margin Requirements: Lower compared to overnight/weekend, due to real-time price updates and higher liquidity.
2. Overnight Margin
• When It Applies: 15 minutes before the market’s official closing time on a regular trading day (i.e., when the market will reopen normally the next day).
• Reason: Post-close liquidity is lower, and price gaps can occur at the next open. Higher margin helps safeguard positions against these overnight swings.
• Example: If a market closes at 4:00 p.m. local time, overnight margin rules begin at 3:45 p.m. if you intend to hold your CFD position beyond the close.
3. Weekend & Holiday Margin
• When It Applies: 15 minutes before the final closing time if the next trading session is after a weekend or holiday.
• Example: if the market closes at 4:00 p.m. on a Friday and won’t reopen until Monday, weekend margin applies from 3:45 p.m. on Friday.
• Reason: Extended closures mean unexpected news or events can cause significant price gaps at the next open.
• Margin Requirements: Higher than intraday and overnight, reflecting the increased gap risk over weekends or holidays.
Checking Instrument-Specific Margin Requirements
Each CFD may have a unique margin structure for intraday, overnight, and weekend/holiday sessions. To find the precise margin requirement details for each instrument:
• Visit our Instrument-Specific Contract Details page.
• Select the asset you’re interested in to view its trading hours, margin requirements, and other important specifications.
How Margin Adjustments Work
1. 15-Minute Pre-Close Check
The system automatically reviews each open CFD position 15 minutes before the official close.
If your margin balance doesn’t meet the higher requirement, you’ll need to add funds or reduce positions to avoid liquidation.
2. Automatic Margin Increases/Decreases
When the market reopens, margin requirements usually revert to intraday settings.
This process is automatic; you’ll see updates reflected in your account’s margin usage and free margin.
Tips for Managing Overnight & Weekend Risk
• Monitor Your Positions: Watch the clock leading up to the close—particularly the 15-minute mark before the session ends.
• Maintain Sufficient Collateral: Have enough USDT (or other accepted collateral) to meet elevated margin levels.
• Use Stop-Loss Orders: Limit potential losses due to overnight or weekend volatility.
• Stay Informed: Keep track of holiday schedules, economic calendars, and major news events that can affect the market’s opening price.
Frequently Asked Questions (FAQs)
1. Are margin requirements the same across all CFDs?
No. Requirements can vary by asset class and market conditions. Check our Instrument-Specific Contract Details for current parameters.
2. What if I can’t meet the increased margin requirement?
You’ll need to deposit more collateral or partially close positions. If you don’t, the system may partially or fully liquidate positions to restore required margin levels.
Need More Help?
For further questions or issues, please visit our Help Center or use our chatbot for assistance.
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