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CFD account
Trade CFDs on over 10,000+ shares, FX pairs, commodities, indices and treasuries
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Your profit or loss is determined by the difference between the price you enter a trade at and the price you exit at. Remember that prices are always quoted with the sell price of the left and the buy price on the right.
In this example, ABC plc is trading at $15.99/$16.00. Assume you want to buy 1000 share CFDs (units) because you think the price will go up. ABC plc has a tier 1 margin rate of 10%, which means that you only have to deposit 10% of the position’s value as position margin.
In this example, your position margin will be $1,600 (10% x (1000 units x $16.00 buy price)). Remember that if the price moves against you, it is possible to lose more than your initial position margin of $1,600.
Outcome A: a profitable trade
Your prediction was correct and the price rises over the next hour to $16.25/$16.26. You decide to close your position by selling at $16.25 (the new sell price).
The price has moved 25 cents ($16.25 – $16.00) in your favour. Multiply this by the size of your position (1000 units) to calculate your profit which is $250.
Outcome B: a losing trade
Unfortunately, your prediction was wrong and the price of ABC plc drops over the next hour to $15.49/$15.50. You feel the price is likely to continue dropping, so to limit your potential losses you decide to sell at $15.49 (the new sell price) to close the position.
The price has moved 51 cents ($16.00 – $15.49) against you. Multiply this by the size of your position (1000 units) to calculate your loss which is $510. Remember, our margin requirements are only applicable to net open positions.
In this example, ABC plc is trading at $15.99/$16.00. Assume you want to sell 1000 share CFDs (units) because you think the price will go down. ABC plc has a tier 1 margin rate of 10% which means that you only have to put forward 10% of the total position’s value from your own funds as position margin.
In this example, your position margin will be $1,599 (10% x (1000 units x $15.99 sell price)).
Remember that if the price moves against you, it is possible to lose more than your initial position margin of $1,599.
Outcome A: a profitable trade
Your prediction was correct and the price falls over the next hour to $15.49/$15.50. You decide to close your trade by buying back at $15.50 (the new buy price).
The price has moved 49 cents ($15.99 – $15.50) in your favour. Multiply this by the size of your position (1000 units) to calculate your profit which is $490.
Outcome B: a losing trade
Unfortunately, your prediction was wrong and the price of ABC plc rises over the next hour to $16.49/$16.50. You decide to cut your losses and buy at $16.50 (the new buy price) to close the position.
The price has moved 51 cents ($16.50 – $15.99) against you. Multiply this by the size of your position (1000 units) to calculate your loss which is $510.
CFD share trades attract a commission charge for each trade. Singaproe share trades cost 10 basis points (0.10%) with a $10 minimum commission charge per trade.
To determine how much commission you would pay, multiply your position size by the applicable commission rate.
In the ABC plc example above, the charge to open a buy position would be calculated as follows:
1000 (units) x $16.00 (price) x 0.10% = $16.00
The charge to close the buy position would be calculated as follows:
1000 (units) x $16.25 (price) x 0.10% = $16.25
If you hold any position after 5pm New York time, you will be charged a holding cost, or if the position has a fixed expiry the cost is built into the price of the product.
We calculate the holding rate applicable to the holding cost based on the interbank rate of the currency in which the product is denominated. For example, Singapore stocks are based on the Singapore Overnight Rate Average (SORA). For buy positions, we charge 2.5% above SORA and for sell positions you receive SORA minus 2.5% (exceptions may apply), unless the underlying interbank rate is equal to or less than 2.5%, in which case sell positions may incur a holding cost.
You can view your historic holding costs by clicking on the account menu and then the history tab.
View further information on how CFDs work and the benefits of CFD trading, such as going short and hedging physical shares.