CFDs (Contracts for Difference) are derivatives that allow you to trade an underlying asset, without having to purchase that asset. A CFD is an agreement to exchange the difference in the value of an asset from the time the contract is opened until the time at which it’s closed.


Trading CFDs

You can trade CFDs*, long or short, to speculate on price movement or you can utilise CFDs to hedge an existing portfolio. Global Prime FX offers clients the ability to trade Index and Commodity CFDs via MT4.

Benefits

  • Access CFD Equity Indices that give exposure to underlying Equities Indices* including the ASX200, Nasdaq 100, S&P 500 and more.
  • Access CFD Energies Indices, that give exposure to underlying Energy Commodities Indices**, and benefit from lower fees compared to spot commodity trading, non-expiry and greater pricing transparency
  • Utilise CFDs to speculate long / short or hedge existing positions

*CFDs are cash instruments and subject to daily financing fees and dividends. 3 day CFD financing is applied to open positions on Friday to cover the weekend (as opposed to 3 day FX swaps applied on Wednesday rollover).
**Clients do not have to roll commodity cash products as they do not expire like futures products.

Margin requirements and trading times

Instrument Name

Symbol

Margin Req.

Units per Lot

Max Trade (Lots)

Trading Hours – GMT+2

ASX 200

AUS200

1%

1 Contract

50

00:50 – 24:00

Nikkei 225

JPN225

1%

1 Contract

5000

01:00 – 24:00

Hang Seng Index

HK50

1%

1 Contract

800

01:00 – 24:00

Euro Stoxx 50

EUSTX50

1%

1 Contract

100

01:00 – 24:00

CAC 40

FRA40

1%

1 Contract

50

01:00 – 24:00

DAX 30

GER30

1%

1 Contract

100

01:00 – 24:00

FTSE 100

UK100

1%

1 Contract

80

01:00 – 24:00

DJ 30

US30

1%

1 Contract

50

01:00 – 24:00

NASDAQ 100

NAS100

1%

1 Contract

150

01:00 – 24:00

S&P 500

US500

1%

1 Contract

1000

01:00 – 24:00

US Crude Oil

XTIUSD

1%

1,000 Barrels

40

01:00 – 24:00

Brent Crude Oil

UKOIL

1%

1,000 Barrels

10

03:00 – 24:00


Risks associated with trading CFDs

CFDs are a leveraged financial product, which allows you to trade larger volumes than your deposit balance would otherwise allow. Similar to trading Forex, clients are required to deposit an initial margin in order to open a CFD contract.

While this can magnify your returns, it also means your losses could be magnified such that you could lose more than the total capital you deposited. As such, clients need to manage their margins when placing and maintaining CFD orders.

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