Account funding in Dukascoins
Funding in Dukascoins allows FX/CFD traders to almost double trading margin comparing to regular funding methods.
Besides that, the Dukascoin funding facility creates a unique possibility to simultaneously earn on fixed high return of Dukascoin deposit programs (up to 100% yearly) and to take advantage from trading on Forex/CFD.
General Conditions & Limitations
Dukascoins can be used as funding means for Dukascopy Forex/CFD margin trading accounts under the following conditions:
- A special Dukascoin-fundable Forex/CFD trading account should be opened by the client. This option is available to clients that have at least 100 DUK+ on their MCA account.
- The base currency of DUK+ fundable trading accounts is always EUR.
- Dukascoins transfers between the MCA account and Dukascoin-fundable trading account are converted by Dukascopy Bank at the current DUK+/EUR TAFCR rate. TAFCR rate is used both for deposits and withdrawals.
- The TAFCR rate is the historical average price of DUK+/EUR multiplied by a factor of 1.8 (read more). It was created specifically for trading account funding operations to ensure a stable conversion rate. Usage of the TAFCR rate protects clients against DUK+/EUR price volatility risk.
- Each trader can have only one Dukascoin-fundable trading account.
USE CASE 1 — Funding of a trading account with DUK+
- You have 1'000 EUR and want to open a trading account with Dukascopy Bank. You learn about the attractive conditions offered on Dukascoin-fundable trading accounts and decide to go for that option.
- You buy Dukascoins on the internal marketplace at the average rate of 0.64 EUR for 1 DUK+.
1'000 EUR / 0.64 => You purchased 1'562.50 Dukascoins (DUK+)
You open a Dukascoin-fundable trading account from your MCA accounts's client area and transfer your 1'562.50 DUK+ to this trading account.
The special conversion rate applied for this operation is 0.73 (historical weighted DUK+ price) * 1.8 (multiplicator applied to account funding conversions) => 1.31 EUR for 1 Dukascoin.
1'562.50 Dukascoins X 1.31 = 2'053 EUR
- Result: You have 2'053 EUR of equity on your trading account while you had only 1'000 EUR of initial funds. You received an additional leverage of almost 2X due to choosing the option to fund your trading through Dukascoins.
USE CASE 2 — Combining a Dukascoin deposit with a trading account fundable in DUK+
- You have accumulated 10'000 Dukascoins on your MCA account and decide to place those on a Coin Reward Deposit for 1 year.
- According to the current conditions, the reward rate for a deposit of 10'000 coins is 100%. The reward is payable at deposit initiation, so you have 10'000 × 2 = 20'000 Dukascoins on the deposit account right away.
You want to make an additional use of the deposit amount and decide to use these funds as margin for a Dukascoin-fundable trading account. You open the trading account from your MCA account's client area and transfer your 20'000 DUK+ to this trading account.
The special conversion rate applied for this operation is 0.73 (historical weighted DUK+ price) × 1.8 (multiplicator applied to account funding conversions) => 1.31 EUR for 1 Dukascoin.
20'000 Dukascoins X 1.31 = 26'280 EUR
- Result: You started with 10'000 Dukascoins (approximately 6'400 EUR, assuming the current exchange rate on the internal marketplace is 0.64). You received a 100% reward rate on the deposit (i.e. 10'000 DUK+ more) and opened a trading account worth 26'280 EUR using the same funds as margin. You received an additional leverage of almost 4X due to choosing the option to combine a Dukascoin deposit with a trading account funding through Dukascoins.
Creation of a Dukascoin-fundable trading account
At the present moment clients may request opening a Dukascoin-fundable trading account by contacting their account manager directly or by sending an inquiry to [email protected]
- You will receive a link to sign the necessary account opening documents.
- Upon successful processing of the inquiry, you will receive an email with the login and temporary password of the new trading account.
Funding of the account
Log in to the Live Member area of your Dukascoin-fundable trading account, proceed to “My Account” section and find the “Deposit in Dukascoins” form:
The amount of DUK+ coins available in your MCA account will be shown in the form. Indicate the amount of Dukascoins you wish to transfer (or tick the “Full transfer” checkbox) and confirm the operation by clicking on the “Submit” button:
Dukascopy will convert the requested DUK+ deposit amount to the base currency of the account (EUR) will be exchanged to EUR using the current TAFCR rate before being creditinged to the trading account.
Withdrawing funds from the account
Log in to the Member area of your Dukascoin-fundable trading account,. proceed to “My Account” section and find the “Withdrawal in Dukascoins” form:
Indicate the desired withdrawal amount in EUR and confirm the operation:
Dukascopy will convert the requested EUR withdrawal amount to DUK+ using the current TAFCR rate before crediting the MCA account.
Trading account funding conversion rate
Dukascopy Bank applies a special rate to all exchanges of DUK+ to EUR and EUR to DUK+ when these operations are executed while depositing or withdrawing funds from a trading account — Trading Account Funding Conversion Rate (TAFCR).
[Average price of DUK+ public trades executed on the Dukascopy internal marketplace during the entire lifespan of the Dukascoin weighted by traded volume and multiplied by the factor of 1.8]
TAFCR = 1.8 x Avg(DUK+)*
* Avg(DUK+) − the average price of DUK+ public trades executed on the Dukascopy internal marketplace during the entire lifespan of the Dukascoin weighted by traded volume.
- Calculation base period is the entire lifespan of Dukascoin existence.
- Every Dukascoin public trade on the internal marketplace triggers recalculation of the TAFCR rate.
- Private trades are not taken in TAFCR calculation.
- Weighting of the trades in the TAFCR calculation is done on the basis of the volume traded in the particular operation to the total volume of Dukascoins publicly traded during the lifespan of the Dukascoin. Volume of the trades is taken in DUK+.
- Under all conditions the TAFCR cannot be lower than 1 DUK+/EUR and higher than 10 DUK+/EUR.
Historical development of the TAFCR rate