opportunities in trading world indices with cfds
DESCRIPTION
Learn how you are able to trade broad markets through World Indices CFDTRANSCRIPT
Opportunities in Trading World Indices with CFDs
Updated 26.11.2012
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
Launched on 1st April 2012
FTSE China A50 Index CFD
FTSE Bursa Malaysia KLCI Index CFD
Launched on 3rd Sept 2012
Indonesia Index CFD
India50 Index CFD
• These presentation slides are provided to you for general information only and does not constitute a recommendation or an offer or solicitation to purchase or sell the product mentioned. They do not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of you acting based on this information.
• Investments are subject to investment risks. The risk of loss in leveraged CFD trading can be substantial. You may sustain losses in excess of your initial funds and may be called upon to deposit additional margin funds at short notice. If the required funds are not provided within the prescribed time, your positions may be liquidated.
• You should also consider the commission and finance costs involved for trading CFDs. The resulting deficits in your account are subject to penalty charges. The value of investments denominated in foreign currencies may diminish or increase due to changes in the rates of exchange.
• You are advised to read the Terms and Conditions of CFD Trading and CFD Information Sheet before undertaking transactions in CFDs. The Terms and Conditions of CFD Trading and CFD Information Sheet can be obtained online at www.poems.com.sg or from Phillip Securities Pte Ltd.
• You may wish to obtain advice from a qualified financial adviser, pursuant to a separate engagement, before making a commitment to purchase any of the investment products mentioned herein. In the event that you choose not to obtain advice from a qualified financial adviser, you should assess and consider whether the investment product is suitable for you before proceeding to invest and we do not offer any advice in this regard unless mandated to do so by way of a separate engagement.
Disclaimer
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
• CFDs may not be suitable for clients whose investment objective is preservation of capital and/or whose risk tolerance is low. Clients are advised to understand the nature and risks involved in margin trading.
• You are advised to read carefully and understand the Risk Disclosure Statement from www.phillipcfd.com/download/PhillipCFDRiskDisclosureStatement.pdf before undertaking transactions in CFDs.
• Any CFD offered is not approved or endorsed by the issuer or originator of the underlying security and that the issuer or originator is not privy to the CFD contract.
• Phillip Securities Pte Ltd reserves the right to amend the information presented without prior notice.
• The Straits Times Index CFD (the “Securities”) are not in any way sponsored, endorsed, sold, or promoted by FTSE International Limited, The London Stock Exchange Plc, The Financial Times Limited, SPH Data Services Pte Ltd, Singapore Press Holdings Ltd or Singapore Exchange Securities Trading Limited (collectively, the “Index Sponsor”), and the Index Sponsor bears no liability in connection with the administration, marketing or trading of the Securities. No warranty or representation or guarantee of any kind whatsoever relating to the Straits Times Index (the “ST Index”) or the Securities is given by the Index Sponsor. Singapore Press Holdings Ltd is entitled to all intellectual property rights in the ST Index.
• Some information in this presentation as been obtained from public sources which PSPL has no reason to believe are unreliable. PSPL has not verified such information and no representation or warranty, expressed or implied, is made that such information is accurate, complete or verified or should be relied upon as such.
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
Disclaimer (continued):
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
What is Contracts for Difference (CFD)?
A CFD is a derivative product
that allows you to participate
in the price movement of an
underlying share / index,
without owning the shares of
the company.
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
What is Contracts for Difference (CFD)?
Client BrokerageHouse
CFD trades
Contractual agreement between two parties to settle the difference between the closing and opening price at the close of contract.
Definition of CFD
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
What is Contracts for Difference (CFD)?
CFD – A trading instrument to complement your trading strategies
Convenient to short sell
Flexible trading strategies
Diversify with up to 20 times leverage
Gross Profit or Loss =
(Closing Price – Opening Price) x Value of 1 Index Point x Quantity
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
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Let’s zoom into the World Indices…
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What is an Index?
• An index is a compilation of stocks constructed in such a manner to track a particular market, sector, commodity, currency, bond, or other asset
• Provides investors a macro view of the performance of the area which the index tracks by referencing to a single value
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
Is the Index Tradable?
• The answer is YES• Technically one can replicate the index by
buying a basket of underlying stocks in their respective weightage but it proves to be …– Cumbersome – Costly – High error of execution – Tiring
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
Is the Index Tradable?
• Introduction of derivative and specially structured products easy access to trading the index
• World Indices CFD, Index Warrants, Index ETFs, Index Futures, Index Options
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
Features of the World Indices CFD
• Gain exposure to market movement of underlying indices
• Up to 20x leverage• Long and Short• Competitive spread• No expiry unlike Futures, Options and Warrants• Enjoy corporate actions on ex-date• Small contract size – minimum of 1
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
Kinds of World Indices CFDs
• There are currently 2 kinds of index CFDs listed in our World Indices CFDs offering– Cash-derived Index CFDs
– Cash-correlating Index CFDs
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
Cash-Derived Index CFD
• Straits Times Index SGD5 CFD• Quotes are based on the STI and a 3.6 point
spread is marked around it. • The 3.6 point spread is fixed around the index
but skews may occur.
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
Cash-Derived World Index CFD
Cash-Derived World Index CFDSTI: 3115.56
STI: 3115.6
Bid: 3113.8 Ask: 3117.4
Bid: 3114.6 Ask:3118.2Bid: 3112 Ask: 3115.6
Naturally rounded
+1.8-1.8
OR OR
+0-3.6 +2.6-1
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
Cash-Correlating Index CFD
Product Correlates With
Singapore Index SGD20 CFD MSCI Singapore
Hong Kong 40 Index HKD5 CFD Hang Seng Index
H Shares Index HKD5 CFD China Enterprise Index (H-shares)
Japan 225 Index JPY100 CFD Nikkei 225
Tokyo Index JPY1000 CFD TOPIX
Taiwan Index USD20 CFD MSCI Taiwan
Wall Street Index USD1 CFD Dow Jones Industrial Average
US SP500 Index USD5 CFD S&P 500
US Tech 100 Index USD5 CFD NASDAQ 100
US Rus2000 USD10 CFD Russell 2000
List of World Indices CFDs
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
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Cash-Correlating World Indices CFD Vs Cash Index
US SP 500 Index CFD
S&P 500
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
Cash-Correlating World Indices CFD Vs Cash Index
H Shares Index CFD
China Enterprise Index (H-shares)
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
Who Would Trade the World Indices CFDs?
Traders and investors who want to:• participate in market movements of
certain indices without need to stock pick
• hedge against market sentiment without selling their stocks
• trade on a derivative instrument which has no expiry
• trade a product that caters for dividends
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
In Summary, World Indices CFD
• Is a form of CFD allowing clients to trade the underlying index
• It tracks the level of the index, although the prices may differ from the actual index levels
ProfitProfit / / LossLoss
2100
2200
2300
2400
2500
2600
2700
Investor may take a bearish view and Sell (Short) a STI CFD contract on Index at 2450
When the index level increases to 2600, investor can Buy back his STI CFD contract and incur a loss
2100
2200
2300
2400
2500
2600
2700
When the index level increases to 2600, investor can Sell off his STI CFD contract and receive the profit
Investor may take a bullish view and Buy (Long) a STI CFD contract on Index at 2350
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
Contract Specifications
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
World Indices Offered Under Phillip CFD
Hong Kong 40 HKD5 Index CFD
Product Name Traded Currency Index point value
Contract Size = Price of Index x HK$5 x Qty
How to interpret the product names
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
Straits Times Index SGD5 CFD (Cash-Derived)
Index
Value of 1 Index Point
Contract Size
*Target Spreads
Initial Margin
(IM)
Mainte-nance Margin (MM)
CFD Trading Hours (Singapore time)
Straits Times Index SGD5 CFD
S$5
S$5 x Price of Index x
Qty
3.6 5% 5%9:01 am – 4:59
pm
For example: Assume STI is currently at 3000.8 pts
CFD Bid CFD Ask
Straits Times Index SGD5 CFD 2999 3002.6
*Target spread -1.8 +1.8
*Target spreads are subject to variation, especially in volatile market conditions and may widen during out-of-trading hours
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
Features of Straits Times Index SGD5 CFD
Low margin requirements
Trade Singapore blue chip counters from as low as…
5%(20 times leverage)
Example:Long 1 lot of Straits Times Index SGD5 CFD @ 3000Contract size = 3000 x S$5 x 1 = S$15,000Margin requirement = 5% x S$15,000 = S$750.00
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
Order Execution for Straits Times Index SGD5 CFD?
Golden Rule: Buy on Ask, Sell on Bid
2997 3003
BID ASK
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
Singapore Index SGD20 CFD (Cash-Correlating)
Index
Value of 1
Index Point
Contract Size
*Target Spreads
Initial Margin
(IM)
Mainte-nance Margin (MM)
CFD Trading Hours (Singapore time)
Singapore Index
SGD20 CFD
S$20
S$20 x Price of Index x
Qty
0.3 5% 5% 8:31am – 5:09pm
*Target spreads are subject to variation, especially in volatile market conditions and may widen during out-of-trading hours
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
Wall Street Index USD1 CFD (Cash-Correlating)
Index
Value of 1 Index Point
Contract Size
*Target Spreads
Initial Margin
(IM)
Mainte-nance Margin (MM)
CFD Trading Hours (Singapore time)
Wall Street Index USD1 CFD
US$1 US$1 x Price of Index x
Qty
4 5% 5%
7:00 am – 4.00 am (DS) or 7:00 am – 5.00 am
(Non-DS)
*Target spreads are subject to variation, especially in volatile market conditions and may widen during out-of-trading hours
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
US SP 500 Index USD5 CFD (Cash-Correlating)
Index
Value of 1 Index Point
Contract Size
*Target Spreads
Initial Margin
(IM)
Mainte-nance Margin (MM)
CFD Trading Hours (Singapore time)
US SP 500
Index USD5 CFD
US$5 US$5 x Price of Index X
Qty
0.5 5% 5%
7:00 am – 4.00 am (DS) or 7:00 am – 5.00 am (Non-DS)
*Target spreads are subject to variation, especially in volatile market conditions and may widen during out-of-trading hours
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
US Tech 100 Index USD5 CFD (Cash-Correlating)
Index
Value of 1 Index Point
Contract Size
*Target Spreads
Initial Margin
(IM)
Mainte-nance Margin (MM)
CFD Trading Hours (Singapore time)
US Tech 100
Index USD5 CFD
US$5 US$5 x Price of Index x
Qty
1 20% 20%
7:00 am – 4.00 am (DS) or 7:00 am – 5.00 am (Non-DS)
*Target spreads are subject to variation, especially in volatile market conditions and may widen during out-of-trading hours
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
US Rus2000 Index USD10 CFD (Cash-Correlating)
Index
Value of 1 Index Point
Min Contract Size
Contract Size
*Target Spreads
Initial Margin
(IM)
Mainte-nance Margin (MM)
CFD Trading Hours
(Singapore time)
US Rus2000
Index USD10
CFD
US$10 1US$10 x Price of
Index x Qty0.5 20% 20%
8:01 am – 4.00 am (DS) or 8:01 am – 5.00 am (Non-DS)
*Target spreads are subject to variation, especially in volatile market conditions and may widen during out-of-trading hours
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
Corporate actions
Participate in corporate actions
When a World Index CFD that caters for corporate actions announces dividends:
- Long positions to receive cash adjustment in World Index CFD Contract- Short positions to pay cash adjustment in World Index CFD Contract- Cash adjustment is done on Ex-Date
Formula for dividend adjustment
Step 1: Equivalent number shares =
[Qty of Index Contract x Settlement Price of Index CFD x Value of 1 Index Point] x Stock Weighting on the Index / Settlement Price of Component Stock
Step 2: Dividend adjustment = Equivalent number of shares x dividend issued per share
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
Corporate Actions
Contract DividendsWall Street Index USD1 CFD Yes
US SP 500 Index USD5 CFD Yes
US Tech 100 Index USD5 CFD Yes
Japan 225 Index JPY100 CFD Yes
Tokyo Index JPY1000 CFD Yes
Hong Kong 40 Index HKD5 CFD Yes
H Shares Index HKD5 CFD Yes
Taiwan Index USD20 CFD Yes
Straits Times Index SGD5 CFD Yes
Singapore Index SGD20 CFD Yes
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
Using Equities CFD & World Indices CFD as hedging tools
Assuming Client A bought 1 lot of ABC
component shares at $15.43 on 15 Apr, but the price came
tumbling down soon after. What options
does Client A have at this point? Assume bearish conditions.
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
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Using Equities CFD & World Indices CFD as hedging tools
Buy 1 lot of ABC component share,
If the client held on to the position till 10 Jun and sold it off at $13.24,
Losses = ($13.24 - $15.43) * 1,000 = $2,190
Commission = ($15,430 * 0.28%) + ($13,240* 0.28%)
= $43.20 +$37.07
= $80.27 ($85.89 with GST)
Exchange fees = $7.84 + $6.73
= $14.57
Net Loss = ($2,284.84)
What can client A do? (Assuming client does not trade CFDs)
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Using Equities CFD & World Indices CFD as hedging tools
To hedge his positions, Client A can short-sell 1
contract of STI SGD5 CFD at 3,037 on 15 Apr and buy back at 2,750
on 10 Jun. Assume bearish conditions.
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
Using Equities CFD & World Indices CFD as hedging tools
Gross Profit/Loss = (3,037 – 2,750) * $5 = $1,435
Commission = $20 ($21.40 with GST)
Interest = $85.86
Profit = $1,329.14
Client A profits $1,329.14 from this hedging position
Net Loss = ($955.70)
Hedging with Straits Times Index SGD5 CFD
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© PhillipCapital 2011. All Rights Reserved.
STI CFD STI Warrants
Margin requirement / Capital outlay (%) 5% of contract value Varies, low
Margin requirement / Capital outlay ($)
About $500-700, with STI between 2000-2800 pts
Typically $200-500(for front month warrants^)
Factors affecting priceTransparent, tracks the
actual STI point by point
Time to expiry, implied volatility, strike price, price of underlying,
risk-free rate, etc
Expiry30 days, with perpetual
auto-renewal functionTypically within 1 to 4 months, upon
which warrant expires worthless
“Short-sell” functionJust a mouse click or trade
call away!Yes, subject to availability
of Put Warrants
Commission(before GST) $3 per side/lot
About 0.28% (before SGX clearing & access fees)
Finance interest
5.5% p.a. (Long)3.0% p.a. (Short)
on 100% marked-to-market contract value
None. However, theta (time decay) is significantly large and accelerates
exponentially as warrant approaches expiration
*Dollar value for Contract value and Margin requirements are used for illustrations only, assuming the underlying asset trades at a certain level.
^For contract month with an expiration date closest to the current date/month.
Comparing Straits Times Index SGD5 CFD to STI Warrants
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
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STI CFD STI Futures SIMSCI Futures
Contract value$5 x Traded Price
of STI CFD$10 x STI Futures
Price$200 x SIMSCI
Futures Price
Contract value ($)$12,500
(if STI at 2500)$25,000
(if STI Futures at 2500)$60,000
(if SIMSCI at 300)
MR (%) 5% Between 5-10% Between 5-15%
MR ($) Low, ~$600 Mid, ~$1125 High, ~$4375
Volatility
Tracks the actual STI
point by point Tracks the STI closely More volatile than STI
Liquidity & Typical Spread
Highly liquid, target spread
of 3.6 pts
Illiquid, low volume, potentially large spread
of 6 to 30 pts
Highly liquid, tight spread of
0.1 to 0.4 pts (1 - 4 STI pts)
“Short-sell” Yes Yes Yes
Commission $3 per side/lot $10 per side/lot $12 per side/lot*Dollar value for Contract value and Margin requirements are used for illustrations only, assuming the underlying asset trades at a certain level.
Comparing Straits Times Index SGD5 CFD to STI Futures & SIMSCI Futures
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
Working Examples, Example 1: ‘BUY’ (Long) Straits Times Index SGD5 CFD
.Client is bullish on Straits Times Index and decides to buy (LONG) 1 contracts of
Straits Times Index SGD5 CFD at 2943. Assuming margin requirement for XYZ is 5% with leverage of 20 times.
Bought at 2943
Sell off at 3173
The listed example is for illustration purpose only.
Past performance not indicative of future
performance
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
Straits Times Index SGD5 CFD
Quantity 1 contract
Initial Capital $735.75
Opening @ 2943:
Contract Value $14,715
Commission (w 7% GST) ($10.70)
Position closed on Day 21
Finance Charges* ($46.44)
Closing @ 3173:
Contract Value $15,865
Commission (w 7% GST) ($10.70)
Net Profit / (Loss) $1,082.16
Return on Equity (%) 147.08%
Scenario 1: Client closed his position 21 days later and sold off Straits Times Index SGD5 CFD at 3173.
*Finance charge is calculated based on contract opening price, assuming it remains unchanged.
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
Straits Times Index SGD5 CFD
Quantity 1 contract
Initial Capital $735.75
Opening @ 2943:
Contract Value $14,715
Commission (w 7% GST) ($10.70)
Position closed on Day 21
Finance Charges* ($46.44)
Closing @ 3173:
Contract Value $13,520
Commission (w 7% GST) ($10.70)
Net Profit / (Loss) ($1,262.84)
Return on Equity (%) (171.64%)
Scenario 2: Client closed his position 21 days later and sold off Straits Times Index SGD5 CFD at 2704.
*Finance charge is calculated based on contract opening price, assuming it remains unchanged.
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
© PhillipCapital 2011. All Rights Reserved.
Phillip Securities CFD Team
Why ?
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Phillip Securities CFD Team
Results from Investment Trends 2012 Singapore CFD & FX Report, based on ratings given by 12,200
investors
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Phillip Securities CFD Team
Comprehensive Comprehensive educational educational
programs and programs and seminars to seminars to
enhance your enhance your trading trading
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Phillip CFD Trading Platform – CFDTrader 2
You will receive an You will receive an email with email with
instructions to instructions to download download
CFDTrader 2CFDTrader 2
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Phillip CFD is now on POEMS Mobile!
Smart CFD Trading anytime, anywhere with POEMS Mobile
iPhone app.
Trade Shares CFD, or DMA CFD from 1 app.
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• Please read carefully our product information sheet, terms and conditions and risk disclosure
statements which can be obtained from www.phillipcfd.com
• Attend our educational seminars. It will help you have a better understanding of CFD.
• Familiarize yourself with the platform. We organize tutorials guiding clients on
CFDTrader2 usage.
• Should you have any queries, kindly contact your Trading Representative or CFD Desk
Before You Begin Trading
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
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