World Indices CFD
Diversify on World Indices CFD with up to 20 times leverage
World Indices CFD is a form of Contracts For Difference (CFD) that allows investors to track and trade the underlying index, although the prices may differ from the actual index levels.
Stock market indices are good indicative measures of the market performance. Indices such as the Straits Times Index (STI) and the Nikkei 225 Index are baskets of blue chip stocks listed on the exchange and are generally good measures of the current market sentiment. Thus investing in World Indices CFDs that track these underlying indices are in effect investing in the performance of these blue chips stocks.
With World Indices CFDs, investors are able to diversify across various markets. Being able to long and short an index with CFD allows investors to trade on the price movements of the entire stock index as a whole, as opposed to entering the market via investments in individual companies. This is useful for clients who wish to begin investing in a new market but are unaware how to do so due to lack of familiarity.
Phillip CFD offers both Cash-Derived World Indices CFDs and Cash-Correlating World Indices CFDs. The difference between these two categories of CFDs is that the Cash-Derived World Indices CFDs are derived directly from the underlying cash index, while the Cash-Correlating World Indices CFDs may not be at the same index value point as the underlying cash index but are certainly well correlated to them. Investors can look at their charts on the cash indices to trade directly on the Cash-Derived World Indices while the cash indices simply show an indication of the movement of Cash-Correlating World Indices CFDs.
Trade in different markets with World Indices CFD
World Indices CFDs include:
Singapore
- Singapore Index SGD20 CFD
- Straits Times Index SGD5 CFD
Asia
- Hong Kong 40 Index HKD5 CFD
- H Shares Index HKD5 CFD
- Japan 225 Index JPY100 CFD
- Taiwan Index USD20 CFD
- Tokyo Index JPY1000 CFD
- FBM KLCI MYR10 CFD
- FTSE China A50 Index USD1 CFD
United States
- US Rus2000 USD10 CFD
- US SP 500 Index USD5 CFD
- US Tech 100 Index USD5 CFD
- Wall Street Index USD1 CFD
With the ability to leverage 5 to 20 times the capital outlay, clients are only required to use a fraction of the contract value to initiate and maintain the positions. World Indices CFD allows for gains to be magnified, while the flipside is that losses can be equally great. However, through hedging and short selling, investors have the potential to maximise their returns and lower risk. Please refer to Phillip CFD Infosheet for more information.
Overview of Contract Specs
| World Indices CFD | Value of 1 Index Point | Category of World Indices CFD | Contract Size | Target Spreads (points) | Initial Margin (IM) / Maintenance Margin (MM)2 | Market Trading Hours (Monday to Friday, Singapore time) |
|---|---|---|---|---|---|---|
| Straits Times Index SGD5 CFD | S$5 | Cash-Derived | S$5 x Straits Times Index SGD5 CFD Price x Quantity | 6 | 5% | 9:01 am – 4:59 pm3 |
| Singapore Index SGD20 CFD | S$20 | Cash-Correlating | S$20 x Singapore Index SGD20 CFD Price x Quantity | 0.3 | 5% | 8:31 am – 5:09 pm |
| FBM KLCI MYR10 CFD |
RM10 | Cash-Correlating | RM10 x FBM KLCI MYR10 CFD Price x Quantity | 3 | 5% | 8:46 am – 12:45 pm, 2:30 pm – 5:13 pm |
| FTSE China A50 Index USD1 CFD |
US$1 | Cash-Correlating | US$1 x FTSE China A50 Index USD1 CFD Price x Quantity | 20 | 5% | 9:01 am – 3:28 pm |
| Hong Kong 40 Index HKD5 CFD | HK$5 | Cash-Correlating | HK$5 x Hong Kong 40 Index HKD5 CFD Price x Quantity | 20 | 5% | 9:16 am – 12:00 pm, 1:30 pm – 4:14 pm |
| H Shares Index HKD5 CFD | HK$5 | Cash-Correlating | HK$5 x H Shares Index HKD5 CFD Price x Quantity | 14 | 5% | 9:16 am – 12:00 pm, 1:30 pm – 4:14 pm |
| Japan 225 Index JPY100 CFD | ¥100 | Cash-Correlating | ¥100 x Japan 225 Index JPY100 CFD Price x Quantity | 10 | 5% | 7:46 am – 2:24 pm |
| Tokyo Index JPY1000 CFD | ¥1000 | Cash-Correlating | ¥1000 x Tokyo Index JPY1000 CFD Price x Quantity | 1 | 5% | 8:01 am -10:00 am, 11:30 am -2:09 pm |
| Taiwan Index USD20 CFD | US$20 | Cash-Correlating | US$20 x Taiwan Index US$20 CFD Price x Quantity | 0.3 | 20% | 8:46 am – 1:44 pm |
| Wall Street Index USD1 CFD | US$1 | Cash-Correlating | US$1 x Wall Street Index USD1 CFD Price x Quantity | 4/63 | 5% | 07:00am – 4:00 am (DS) 07:00am – 5:00 am (Non-DS) |
| US SP 500 Index USD5 CFD | US$5 | Cash-Correlating | US$5 x US SP 500 Index USD5 CFD Price |
0.5 | 5% | 07:00am – 4:00 am (DS) 07:00am – 5:00 am (Non-DS) |
| US Tech 100 Index USD5 CFD | US$5 | Cash-Correlating | US$5 x US Tech 100 Index USD5 CFD Price x Quantity | 1 | 20% | 07:00am – 4:00 am (DS) 07:00am – 5:00 am (Non-DS) |
| US Rus2000 USD10 CFD | US$10 | Cash-Correlating | US$10 x US Rus2000 Index USD10 CFD Price x Quantity | 0.5 | 5% | 08:01am – 4:00 am (DS) 09:01am – 5:00 am (Non-DS) |
1 Minimum trade size for all World Indices is 1 contract.
2 The marked-to-market closing price will be used to calculate the MM. Phillip CFD reserves the right
to amend margin requirements from time to time.
3 From 1 August 2011 onwards.
4 Spreads are subject to variation, especially in volatile market conditions and may widen during out-of-trading hours.
(DS) / (Non-DS): Refers to Daylight-Saving and non-Daylight Saving Times respectively for the US time zones. To see trading cost of World Indices, visit our Global Commission & Finance Charges page.
Important Trading Information
Contract Settlement
The following World Indices CFD are settled in their respective traded currencies.
| World Index CFD | Settlement Currency |
|---|---|
| FBM KLCI MYR10 CFD | MYR |
| FTSE China A50 Index USD1 CFD | US$ |
| Hong Kong 40 Index HKD5 CFD | HK$ |
| H Shares Index HKD5 CFD | HK$ |
| Japan 225 Index JPY100 CFD | JP¥ |
| Singapore Index SGD20 CFD | S$ |
| Straits Times Index SGD5 CFD | S$ |
| Taiwan Index USD20 CFD | US$ |
| Tokyo Index JPY1000 CFD | JP¥ |
| US Rus2000 USD10 CFD | US$ |
| US SP 500 Index USD5 CFD | US$ |
| US Tech 100 Index USD5 CFD | US$ |
| Wall Street Index USD1 CFD | US$ |
There will be NO auto-conversion for JP¥, HK$ and US$ should there be any margin deficit in these currencies. If there is any margin deficit in the respective ledgers, clients should submit conversion request to avoid incurring margin debit interest.
Dividend Policy
A dividend adjustment will apply for World Indices CFD, after the ex-dividend date of its underlying component stock.
| World Index CFD | Dividend Adjustment |
|---|---|
| FBM KLCI MYR10 CFD | Yes |
| FTSE China A50 Index USD1 CFD | Yes |
| Hong Kong 40 Index HKD5 CFD | Yes |
| H Shares Index HKD5 CFD | Yes |
| Japan 225 Index JPY100 CFD | Yes |
| Singapore Index SGD20 CFD | Yes |
| Straits Times Index SGD5 CFD | Yes |
| Taiwan Index USD20 CFD | Yes |
| Tokyo Index JPY1000 CFD | Yes |
| US Rus2000 USD10 CFD | No |
| US SP 500 Index USD5 CFD | No |
| US Tech 100 Index USD5 CFD | No |
| Wall Street Index USD1 CFD | Yes |
For example, for client with long positions in World Indices CFD, the dividend adjustment will be credited to the client’s account. For client with short positions in World Indices CFD, the dividend adjustment will be debited from the client’s account.
