Skip to main content
 
 
World Markets
 

Contracts for Differences

Trade different asset classes such as S&P 500 Index and WTI Light Sweet Crude Oil.

 

CFDs is traded on margin between a trader and a CFDs provider, to exchange the cash difference between the opening price and closing price of a transaction. CFDs products are introduced for products that are usually less accessible to retail investors, allowing retail clients to trade shares, equity indices and futures. Trading CFDs is flexible as there isn't any commission, trading fees, clearing fees or stamp duty.

One Single Account

You can trade multiple asset classes using a single trading account along with currencies and precious metals. Clients can create an ideal multi-investment portfolio in a single account, making easier portfolio management and monitoring.

Hedging with CFDs

CFDs allow you to short sell and to profit from falling market prices. This can be used as a hedging tool against portfolio investments. For example, if you have a portfolio of US tech stocks which you wish to keep for long term, but feel that there is a short-term downside risk to it, you could mitigate a short-term loss by shorting the CFDs for NASDAQ.

 

CFD Contract Specifications details

Effective on 7 August 2017, Monday

MT4 Code P/L Currency Trading Hours (GMT)* Break Time (GMT) Target Spread Trade Size Minimum (lots) Trade Size Maximum (lots) Trade Size Step (lots) Standard Contract Size Minimum Value per Tick (CCY)
A50 USD 01:00 – 08:30, Monday – Friday Daily from 08:30 – 01:00 12.5 0.1 10 0.1 10 1 USD
AUS200 AUD 23:50 – 21:00 (Fri 20:45), Sunday – Friday Daily from 06:30 – 07:10, 21:00 – 23:50 2.3 0.1 10 0.05 20 2 AUD
DE30 EUR 06:00 – 20:00, Monday – Friday Daily from 20:00 – 06:00 1.8 0.1 10 0.05 20 2 EUR
ES35 EUR 06:00 – 18:00, Monday – Friday Daily from 18:00 – 06:00 10.3 0.1 10 0.1 10 1 EUR
F40 EUR 06:00 – 20:00, Monday – Friday Daily from 20:00 – 06:00 3.2 0.1 10 0.1 10 1 EUR
HK50 HKD 01:15 – 08:15, Monday – Friday Daily from 00:00 – 01:15, 04:00 – 05:00, 08:15 – 00:00 10 0.1 10 0.02 50 5 HKD
JP225 JPY 23:00 – 20:15, Sunday – Friday Daily 20:15 – 23:00 13.5 0.1 10 0.01 500 50 JPY
STOXX50 EUR 06:00 – 20:00, Monday – Friday Daily from 20:00 – 06:00 3.2 0.1 10 0.1 10 1 EUR
UK100 GBP 06:00 – 20:00, Monday – Friday Daily from 20:00 – 06:00 2.7 0.1 10 0.1 10 1 GBP
US30 USD 22:00 – 22:00 (Fri 20:15), Sunday – Friday Daily 20:15 – 20:30, 21:00 – 22:00 4.3 0.1 10 0.1 10 1 USD
US100 USD 22:00 – 22:00 (Fri 20:15), Sunday – Friday Daily 20:15 – 20:30, 21:00 – 22:00 2.3 0.1 10 0.05 20 2 USD
US500 USD 22:00 – 22:00 (Fri 20:15), Sunday – Friday Daily 20:15 – 20:30, 21:00 – 22:00 0.83 0.1 10 0.02 50 5 USD
USOil USD 22:00 – 20:45, Sunday – Friday Daily 20:45 – 22:00 0.5 0.1 10 0.01 1000 10 USD
UKOil USD 00:00 – 20:45, Monday – Friday Daily 20:45 – 24:00 0.5 0.1 10 0.01 1000 10 USD

***Out of Market Hours Clause

Although the selected CFD symbols are open 24 hours a day, we are not obliged to quote prices or accept orders to which Out of Hours Trading applies whenever the relevant exchange is closed for business. You may refer to the table for the indicative spreads for the active trading session for reference.

NOTE: All CFD pending orders, except Stop Loss and Take Profit orders will expire at the end of the trading day.

* Our Server Time is currently set to GMT+1 due to Europe Daylight Savings changes.

Leverage

Leverage allows you to hold a larger position than the initial cash deposit. Your initial outlay is supplemented to increase the value of your underlying investment. The higher the leverage, the larger the position the trader can execute for the same amount of initial deposit

For example, a client using 100:1 leverage could hold a position in the forex market of $100,000 with a margin of $1,000. For a 200:1 leverage, the client would need a $500 margin to hold the same position.

Leverage increases the potential of high returns when the market moves in their favour. However, please note that leverage will act against you when the market moves in the opposite direction to your prediction.

 

Leverage Levels

Different leverage level applies to different account types.

 

Margin Requirement

When an investor opens an account with a broker, an initial deposit is required in order to open a position in the market. The required cash deposit will act as a deposit to cover any credit risk. Depending on the agreement, the investor could be able to leverage up to a certain limit.

 

The margin requirement for a forex trade is calculated by using the following formula:

Margin = (Lot Size * Contract Size * Opening Price) / Leverage
 

Examples below based on a Standard /Classic account 1:100.

Forex

Margin requirement for one standard contract position in EUR/USD at 1.2500 is calculated as follows:

Margin = (1 * 100,000 * $1.2500) / (100) = $1250.00

Spot Gold

Margin requirement of one standard contract position in Gold at 1579.01 is calculated as follows:

Margin = (1 * 100 * $1579.01) / (100) = $1579.01

Spot Silver

Margin requirement for one standard contract position in Silver at 28.70 is calculated as follows:

Margin = (1 * 5000 * $28.70) / (100) = $1435.00

Note: Interest is not required to be paid on the borrowed amount, but if the investors decides to hold his position overnight, interest will be charged as the rolled over rates on the total positions held.

Margin Call

Margin Call is a level set by a brokerage that defines the minimum amount of money required to trade in the market. When your account falls below the margin call level, you will need to make an additional deposit to maintain your positions. Alternatively you can close some of your positions to reduce your required margin. At Blackwell Global, Margin Call is set at 120%.

 

Stop Out Level

In the event you are unable to maintain sufficient funds in your account after hitting Margin Call, and if your account value depreciates to the Stop Out level, your positions will be automatically closed to prevent further loss to your capital. At Blackwell Global, Stop Out level is set at 80%.

Swaps

Blackwell Global CFD trading is only dealt on a "spot" basis and all trades are settled in two business days from inception as per market convention. We use internationally recognised benchmarks on overnight deposits as a basis for determining interest rates. Spreads around the benchmark interest rate are applied to determine the rollover interest rate.

Rollover interest is automatically calculated and settled at (22:59 Server time) on a daily basis and we do not arrange for physical delivery.

Any open positions held from Friday to Saturday on a trade date basis will be charged three times the value. The extra payment is to cover the interest that would normally have been charged on Saturday and Sunday when the market is closed.

Please note that some CFD products will have a dividend payout on certain days. This dividend will reflect in that day’s swap, so the swap may have a fluctuation on the dividend payout date.

Example 1 Trading on the Futures Exchange

Day 1

WTI Crude Oil is at $106.11
SHORT 8 futures contracts at $106.11

Opening value =
8 X 1000 (contract size) X $106.11 = $848,880.00
Margin requirement (Capital outlay) =
$848,880.00 X 1% = $8,488.80

Day 2

WTI Crude Oil drops to $105.20
CLOSE 8 futures contracts at $105.20

Closing value =
8 X 1000 (contract size) X $105.20 = $841,600.00

P & L =
Payoff – Exchange/Futures Commission Merchant fees (sell and buy)
= ($848,880.00 - $841,600.00) – ($15x2)
= $7,250.00

 

Example 2 Trading of Crude Oil Futures CFD

Day 1

WTI Crude Oil is at $106.11
SHORT 8 lots at $106.11

Opening value =
8 (lots) X 1000 (contract size) X $106.11 = $848,880.00
Capital outlay (based on margin of $1500 per lot) =
$1,500 x 8 =$12,000.00

Day 2

WTI Crude Oil drops to $105.20
CLOSE 8 lots at $105.20

Closing value =
8(lots) X 1000 (contract size) X $105.20 = $841,600.00
P & L = Payoff + Rollover interest
=($848,880.00 - $841,600.00) + (-$32.07)
= $7,247.93

*Note differences in capital outlay
Futures exchange = $42,444.00
CFD = $12,000.00
Rollover interest
= contract size*lots*close price* curr(USD)*long or short int./100/ 360
= 1000*8*$106.11*-1.36 /100/360
= -$32.07
 

Example 3 Trading of Index CFD

Day 1

S&P500 Index is at 1,677.00
BUY 5 lots at 1,677.00

Opening value =
5 lots X 50 (contract size) X 1,677.00 = $419,250.00
Capital outlay (based on margin of $1500 per lot) =
$1,500 x 5 = $7,500

Day 2

S&P500 Index rises to 1,686.20
CLOSE 5 lots at 1,686.20

Closing value =
5 lots X 1 contract size X 1,686.20 = $8,431.00
P & L = Payoff + Rollover interest =
= ($8,431.00 - $8,385.00) + (-$0.38)
= $45.62

Rollover interest
= contract size*lots*close price* curr(USD)*long or short int./100/ 360
= 1*5*$1,677.00*-1.63/100/360
= -$0.38