CFD Indices Example

CFD Indices Example ,

CFD indices trading, is betting on  indices trend .

It can  either be an  up trend or down trend. Is a  contract difference agreement  between the trader and the broker

without involving any underlying assets

Check Out CFD Indices Profit and Loss Calculator

Major CFD Indices being Traded

The Numbers of  Indices  access  available   to trader varies  from  different broker.

 

No	Indices
1	STI Index
2	DAX PERFORMANCE-INDEX
3	Dow Jones Industrial Average
4	Nasdaq
5	FTSE 100
6	Hang Seng Index
7	Hong Kong Stock Exchange Hang Seng China Enterprises Index
8	US FANG
9	Rusell Index
10	EU Stock Indices
11	France Stock Indices
12	Netherlands Indices
13	SSE Composite Index
14	Nikkei 225
15	KLSE Index
16	Jakarta Composite Index
17	KOSPI Composite Index
18	TSEC weighted index (^TWII)
19	Other Major Index around the Globe

 

CFD Indices  Parameters

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

 

Parameters	Meaning
Buy / Sell Spread	The Broker will charge the trader a mark up spread when buying and selling an indices eg: Market Current Indices value for  STI  = 2855 Broker will Charge ( Buy sell Spread 5 )for the  Trader to Open/ Close a position Trader will buy / sell  at 2860/ 2850
Value Per Point	1 Point is the Smallest Unit  that can  Change on the Left Side of a Decimal eg: Market Current Indices value for  STI  = 2855 1 Point = 1 Value per point is Fix by the Broker Example   1 Point  = SGD 100 ( Differs by Broker)

Types of Trade ( Long / Short)

• Long -> You expect the Indices  to  Appreciate .
• Short-> You  expect the Indices  to depreciate.

Margin 

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

Margin = Number of contracts x Contract size x Index price level x Margin rate

 

Overnight Charges

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

The CFD Broker will  charge you Borrowing Interest Fee  to Fund your trade

Borrowing Fee = Numbers of Days x Number of contracts x Contract size x Index 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   Contracts  x  Value Per Point]  – Borrowing cost – Currency  Conversion Fee

 

Short Profit and Loss Calculation

Profit Loss = [ (Open  Position Price –  Close Position Price) x  x  Number Of   Contracts  x  Value Per Point]  – Borrowing cost – Currency  Conversion Fee