Global Prime offers clients the ability to trade Index and Commodity CFDs via MT4 and FIX API
What are CFDs?
CFDs (Contracts for Difference) are derivatives that allow you to trade an underlying asset, without having to purchase that asset. As its name implies, a CFD is an agreement to exchange the difference in the value of an asset from the time the contract is opened until the time at which it’s closed. You can trade CFDs, long or short, to speculate on price movement or you can utilise CFDs to hedge an existing portfolio.
Benefits of CFDs
As a client trading Index and Commodity CFDs, you benefit from the following:
- Access to major Share Indices* around the globe including the ASX200, Nasdaq 100, and S&P 500 via MT4 and FIX API
- WTI and Brent pricing based on front month futures contracts**, which benefit from lower swap fees compared to spot, non-expiry and greater pricing transparency.
- Ability to speculate long or short or utilise to hedge existing positions
- Margin requirements from 1% to 3%
*Index CFDs are cash instruments and subject to daily rollover fees. 3 day CFD financing is applied to open positions on Friday to cover the weekend (as opposed to 3 day FX swaps applied on Wednesday rollover).
**Front month futures contracts are rolled over automatically. 3 day financing fee is also applied on Friday.
Risks Associated with CFDs
CFDs are a leveraged financial product, which allows you to trade larger volumes than your deposit balance would otherwise allow. Similar to trading Forex, clients are required to deposit an initial margin in order to open a CFD contract.
While this can magnify your returns, it also means your losses could be magnified such that you could lose more than the total capital you deposited. As such, clients need to manage their margins when placing and maintaining CFD orders.
CFD Margin Requirements and Trading Times
Global Prime offers Equities Index and Commodity CFDs. Please see below for the margin requirements and trading times:
|Instrument Name||Symbol||GP Margin||Trading Hours – GMT||Break Hours – GMT|
|Australia 200||AUS200||1%||22.50 Monday – 21.00 Friday||05.30 – 06.10|
|Japan 225||JPN225||1%||00.00 Monday – 21.15 Friday||21.15 – 00.00|
|Hong Kong 40||HK50||1%||01.15 – 08.15 Daily||04.00 – 05.00|
|Euro 50||EUSTX50||1%||07.00 – 21.00 Daily||None|
|France 40||FRA40||1%||07.00 – 21.00 Daily||None|
|German 30||GER30||1%||07.00 – 21.00 Daily||None|
|UK 100||UK100||1%||07.00 – 21.00 Daily||None|
|US 30||US30||1%||23.00 Monday – 21.15 Friday||21.15 – 21.30|
|US 100||NAS100||1%||23.00 Monday – 21.15 Friday||21.15 – 21.30|
|US 500||US500||1%||23.00 Monday – 21.15 Friday||21.15 – 21.30|
|US Crude Oil||XTIUSD||3%||23.00 Monday – 21.45 Friday||22.00 – 23.00|
|Brent Crude Oil||UKOIL||3%||01.00 Monday – 21.45 Friday||22.00 – 01.00|
The information on this website is not intended to be an inducement, offer or solicitation to anyone outside of Australia. Global Prime Pty Ltd, ABN 74 146 086 017, (Global Prime) holds an Australian Financial Services Licence (AFSL) to carry on financial services business in Australia, limited to the financial services covered by its AFSL no.385620.
Any Information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs. Before acting on any information or advice on this website, you should consider the appropriateness of it (and any relevant product) having regard to your circumstances and strongly recommend you to seek independent financial advice. Please read our Financial Services Guide and current offer document which is available to be downloaded from this website or hard copies may be sent by contacting us on the details provided on this website.
All financial products involves risk and you should ensure you understand the risks involved as certain financial products may not be suitable to everyone. Trading in margin foreign exchange and derivatives carries a high level of risk and you may incur a loss that is far greater than the amount you invested. Past performance of any product described on this website is not a reliable indication of future performance.