CFDs allow investors to trade the price movement of assets including ETFs, stock indices, and commodity futures. CFDs provide investors with all of the benefits and risks of owning a security without actually owning it. CFDs use leverage allowing investors to put up a small percentage of the trade amount with a broker
When a trader opens a new CFD trade on stocks, the broker opens an identical trade in the underlying stock, which acts as a hedge for the broker. For example, if the client has a long EUR/USD or gold CFD position, the broker owns the corresponding short position, as well as a long position in the stock.
CFDs on stocks are subject to dividend adjustments. When a stock security pays dividends to its shareholders, dividend adjustments will be made to the trading accounts of clients who hold a position on the index at 00:00 GMT+2 time zone (note that DST may apply) on the ex-dividend date. CFDs on Germany30 (GER30Cash) and CFDs on future indices are not subject to dividend adjustments.
Buy trades will receive an amount calculated as follows:
Dividend Adjustment = stock dividend declared x lots x contract size
Sell trades will be charged an amount calculated as follows:
Dividend Adjustment = stock dividend declared x lots x contract size
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Major currency pairs are made up of the world’s most popular and liquid currencies. They are all traded against the US Dollar and have the tightest spreads in forex trading.
When a currency pair does not include the US Dollar, it is called a minor currency pair or a cross-currency pair.
Bid | Ask | ||
---|---|---|---|
AUDCAD | |||
AUDCHF | |||
AUDJPY | |||
AUDNZD | |||
CADCHF | |||
CADJPY | |||
CHFJPY | |||
EURAUD | |||
EURCAD | |||
EURCHF | |||
EURGBP | |||
EURJPY | |||
EURNZD | |||
GBPAUD | |||
GBPCAD | |||
GBPCHF | |||
GBPJPY | |||
GBPNZD | |||
NZDCAD | |||
NZDCHF | |||
NZDJPY |
An exotic currency pair includes a major currency and the currency of a developing economy. These exotic currency pairs are usually less liquid hence having higher spreads.
Bid | Ask | ||
---|---|---|---|
AUDSGD | |||
EURSGD | |||
GBPSGD | |||
NZDSGD | |||
USDSGD | |||
SGDJPY | |||
AUDZAR | |||
CHFZAR | |||
EURCZK | |||
USDCZK | |||
USDMXN | |||
USDZAR | |||
AUDCNH | |||
EURCNH | |||
EURHKD | |||
EURNOK | |||
EURSEK | |||
EURTRY | |||
GBPNOK | |||
GBPSEK | |||
NOKSEK | |||
NZDSEK | |||
USDCNH | |||
USDDKK | |||
USDHKD | |||
USDNOK | |||
USDRUB | |||
USDSEK | |||
USDTRY | |||
CHFHUF | |||
EURHUF | |||
USDHUF |
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