FAQ: Product Information
- Underlying Investment Product
- Portfolio Diversification
- Short Position
- Leverage
- 30 Calendar Days Contract Period
- Sophisticated Trading Strategies
What are the risks of trading CFD?
- Leverage Risk: As CFDs are leveraged products traded on margin, the risk of any gain or loss in leveraged CFD trading can be amplified. The amount of initial margin required to be deposited in the customers’ account prior to trading can be small relative to the value of the contract. A relatively small market movement will have a proportionately larger impact on the funds that customers have deposited or will have to deposit to maintain their position(s). However, if the market moves against the customer’s position(s) or if margin levels are increased, the customer may be called upon on short notice to pay additional funds in order to maintain their position(s).
- Counterparty Risk: CFD is an over-the-counter (OTC) leveraged product traded on an off-exchange basis. Off-exchange transactions are typically less regulated and are subjected to a separate regulatory regime. The firm with which customers conduct their transactions (which may be Phillip Securities, if Phillip Securities acts as your broker to effect a transaction with such firm, or another firm) may be acting as a counterparty to the transaction. Counterparty risk arises when the CFD provider fails to meet a due payment obligation under a CFD.For example, if a holder of a long CFD contract has made a profit and is supposed to receive this gain from the CFD provider. A holder of a long CFD contract should note that he has no recourse to the underlying shares as he has not actually bought the underlying shares.
- Liquidity Risk: As CFDs are traded on an OTC basis, they are subject to the availability of buy and sell prices and volume. Some CFDs have lower liquidity than others, which makes them more difficult to trade at the market price. When this happens, the CFD may not be sold within a reasonable time (if at all) or may be traded at a price which may not reflect its “fair” value. For example, the customer may be required to lower his/ her asking price to sell the CFD, which may incur losses as a result.
- Order Type Risk: When trading CFDs, customers can place certain orders (e.g. stop-limit orders). While these orders could limit losses to certain amounts in most instances, it may not be effective when market conditions make it difficult or impossible to execute such orders without incurring substantial losses.
How is the gross profit or loss of my CFD contracts calculated?
How is the contract value of my CFD contracts calculated?
Is CFD traded on the Exchange?
What are the different fees when trading CFDs?
Can I trade CFD without utilizing the full leverage?
Explain the Auto-Renewal process.

What do I need to do if I do not want to auto renew my contract?
Do I need to inform you if I want to roll over my contract?
How do I compute the finance and commission charges when trading CFD?
Can I trade less than 30 calendar days using Phillip CFD?
Will my commission be amalgamated if I trade the same security on the same trade date?
Explain the mark-to-market practice.
Can I trade using CFD without using the maximum leverage?
Will you change the initial margin requirement of the underlying stocks or index?
Equities CFD
How will my Shares CFD contracts denominated in foreign currency be settled?
| World Indices CFD | Settlement Currency |
| Straits Times Index SGD5 CFD | SGD |
| Singapore Index SGD20 CFD | SGD |
| Hong Kong 40 Index HKD5 CFD | HKD |
| H Shares Index HKD5 CFD | HKD |
| Japan 225 Index JPY100 CFD | JPY |
| Tokyo Index JPY1000 CFD | JPY |
| Taiwan Index USD20 CFD | USD |
| Wall Street Index USD1 CFD | USD |
| US SP 500 Index USD5 CFD | USD |
| US Tech 100 Index USD5 CFD | USD |
| US Rus2000 USD10 CFD | USD |
How is the contract value of Equities CFD calculated?
What are the counters available for trading under Phillip CFD?
When I buy an Equities CFD contract, do I have the ownership to the underlying stock?
How do I know which counters I can short?
What are the queue restrictions on trading Equities CFD?
| Market | Queue restrictions |
| Singapore | Queue up to +/- 20% from the current Bid/Ask price |
| Hong Kong | Queue up to +/- 20% from the current Bid/Ask price |
| Malaysia | Queue up to +/- 30% from the current Bid/Ask price |
| United States | No Queue Restrictions |
What is the minimum contract size?
What are the margin requirements for trading Equities CFD?
How will corporate actions affect my Shares CFD contracts?
For corporate actions not mentioned above, Phillip Securities Pte Ltd reserves the rights to liquidate outstanding positions before the ex-dividend date.How does bonus and stocks split affect my CFD positions?
What Order Types does US DMA CFD support?
Can I place a US DMA CFD order any time?
- Submission Period
| Period | Time |
| Daylight Savings | 2130 hrs to 0400 hrs (Next Day) Singapore Time |
| Non-daylight Savings | 2230 hrs to 0500 hrs (Next Day) Singapore Time |
Will I be entitled to dividends for US DMA CFD?
Are there additional forms I need to complete to trade US DMA CFD?
Can Single Account holders trade in US DMA CFD?
Can I submit over night orders for Equities CFD?
How will funds for my trades be credited and debited?
How will my Shares CFD contracts denominated in foreign currency be settled?
| SGX | KLSE | HKSE | NYSE & NASDAQ | |
| Currency | SGD/USD/HKD | MYR | HKD | USD |
Are there any restrictions on trading US DMA CFD?
World Indices CFD
Do I need to subscribe to US Live Prices to trade in US Indices CFD?
Can Single Account holders trade in US Indices CFD?
Am I entitled to corporate actions when I trade World Indices CFD?
Are there any restrictions on trading US Indices CFD?
What is the difference between a cash-derived and a cash-correlating World Indices CFD?
How do I calculate the contract value of the World Indices CFD?
What are the queue restrictions on trading World Indices CFD?
What are the margin requirements for trading World Indices CFD?
What does target spread in the World Indices contract specifications mean?
What are the features of trading World Indices CFD?
- Trade the entire stock market with index-tracking CFD
- Increased leverage, more trading power
- Participate in rising and falling markets









