CFD Shares Example

CFD Shares Example , unlike conventional stock Investment , the Investor purchase some   quantity of stock and become a Share Holder of a Company.

CFD shares trading do not involve  any underlying Stock asset. Is a Contract of Difference between the Broker and the trader.

Check out CFD Shares Profit and Loss Calculator

Major Stock Exchange  Available For Trade on CFD

The Numbers of Major Market Stock Exchange  access  available   to trader varies  from  different broker.

Below Table Show the Major Stock Exchange 

Stock Exchanges	Market Capitalisation (USD)
Nasdaq	$21.04 Trillion
Nasdaq US	$16.44 Trillion
Shanghai Stock Exchange	$6.09 Trillion
Japan Exchange Group	$6.08 Trillion
Hong Kong stock Exchange	$5.37 Trillion
Shenzen Stock Exchange	$4.53 Trillion
Euro Next Netherland	$4.43Trillion
London Stock exchange	$3.3Trillion
TMX Group Canada	$2.26Trillion
BSE Limited India	$2.11Trillion
Deutsche Boerse  AG	$2.1Trillion
SIX Swiss Exchange	$1.84Trillion
Korea Exchange	$1.64Trillion
Taiwan Stock Exchange	$1.32Trillion
South Africa Stock Exchange	$841.7 Billion
BME Spanish Exchange	$619.87 Billion
Singapore	$583.67 Billion
Thailand Stock exchange	$431.84 Billion
Bursa Malaysia	$378.92Billion
Indonesia Stock Exchange	$380.64Billion
Philippines Stock Exchange	$220.09Billion

 

CFD Shares  Parameters

There are few CFD Shares  Trading Parameters that you might need to fully understand and Clear with

 

Parameters	Meaning
Broker Buy / Sell Commission (%)	Commissions charge by broker Normally between 0.05%  to 1.00% rate  varies by Broker  & Market
Minimum Fees	Minimum Fees Charges  By broker Normally between USD 2 Cent  to  USD 40  rate  varies by Broker & Market
Volume Quantity	Volume Quantity Of Stock

Types of Trade ( Long / Short)

• Long -> You expect the Stocks Price to  Appreciate .
• Short-> You  expect the Stock Price to depreciate.

Margin 

Amount you are required to fund your CFD Share account in order to open a position

Margin = Number of  Share Volume x Share price x Margin rate

Example 

Share Counter Name : Thai Beverage

Share Price: SGD 0.72

Share Volume : 100,000

Margin : 10%

Margin To open a Position  = 100,000 x 0.72 x 10%

Margin To open a Position  = SGD 7200

 

 

Overnight Charges

When you hold the position more than the Market day trading hour

Overnight Charges  = Numbers of Days x Share Volume x Share Price Closing Position x (Broker Interest –  Country Interbank Interest Offered Rate)

 

 

Profit and Lost Calculation

Long Profit and Loss Calculation

Profit Loss =[(  Close Position Price –  Open Position Price)  x Number Of  Stock Volume]  – Borrowing cost – Currency  Conversion Fee

 

Short Profit and Loss Calculation

Profit Loss = [ (Open  Position Price –  Close Position Price) x  Number Of  Stock Volume]  – Borrowing cost – Currency  Conversion Fee