Asia World Indices CFD
Track and trade on underlying Asian markets
Asia is a vibrant and exciting market, rich in cultural roots and economically powerful to effect change globally. Track the performance of the various Asian markets through Hong Kong 40 Index HKD5 CFD, H Shares Index HKD5 CFD, Japan 225 Index JPY100 CFD, Tokyo Index JPY1000 CFD and Taiwan Index USD20 CFD. They are forms of Contracts for Difference (CFDs) that allow clients to trade the underlying index, although the prices may differ from the actual index levels. It tracks the level of the index and provides clients a cost-effective way to diversify their portfolio. Take a bullish or bearish view on the Asian markets with the Asia World Indices CFDs by going long or short respectively. And with a leverage of 20 times, you can use the Asia World Indices CFDs to make your money work harder for you.
1Contract Details
| CFD (Index) | Correlates with | Margin Requirements2 | Category of World Indices CFD | Target Spread3 | Value of 1 Index Point |
|---|---|---|---|---|---|
| Hong Kong 40 Index HKD5 CFD | Hang Sang Index | 5% | Cash-Correlating | 20 pts | HK$5 |
| H Shares Index HKD5 CFD | China Enterprise Index (H-shares) | 5% | Cash-Correlating | 14 pts | HK$5 |
| Japan 225 Index JPY100 CFD | Nikkei 225 | 5% | Cash-Correlating | 10 pts | JPY100 |
| Tokyo Index JPY1000 CFD | TOPIX | 5% | Cash-Correlating | 1 pt | JPY1000 |
| Taiwan Index USD20 CFD | MSCI Taiwan | 5% | Cash-Correlating | 0.3 pts | US$20 |
1 Minimum trade size for all World Indices is 1 contract.
2 The marked-to-market closing price will be used to calculate the MM. Phillip CFD reserves the right
to amend margin requirements from time to time.
3 Spreads are subject to variation, especially in volatile market conditions and may widen during out-of-trading hours.
Asia World Indices CFDs are traded and settled in their traded currencies. There will be NO auto-conversion for HK$, JP¥ 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.
Order Types
Investors can place Limit orders using POEMS and CFDTrader.
Example of Long Trade
A client is bullish on Hong Kong 40 Index HKD5 CFD and buys 1 contract.
Buying Price = 22,257
Scenario 1:
| CFD Bid | CFD Ask | CFD Closing Price | |
|---|---|---|---|
| Day 1 | 22,237 | 22,257 | 22,207 |
| Day 2 | - | - | 22,368 |
| Day 3 | - | - | 22,627 |
| Day 4 | 22,717 | 22,737 | - |
Positions are closed 4 days later at a higher value.
Selling Price = 22,717
Net Gain / Loss = HK$1,928.37
Return on Equity = 34.66%
Calculations:
| Original Investment | HK$5,564.25 |
| Opening Contract of 1 Lot (Day 1) | (HK$111,285.00) |
| Opening Commission (incl GST) | (HK$160.50) |
| Financing Charges | (HK$50.63) |
| Closing Contract Value (Day 4) | HK$113,585.00 |
| Closing Commission (incl GST) | (HK$160.50) |
| Net Gain / Loss | HK$1,928.37 |
| Return on Equity = (Net Gain/Original Investment) | 34.66% |
Scenario 2:
| CFD Bid | CFD Ask | CFD Closing Price | |
|---|---|---|---|
| Day 1 | 22,237 | 22,257 | 22,207 |
| Day 2 | - | - | 22,052 |
| Day 3 | - | - | 21,899 |
| Day 4 | 21,777 | 21,797 | - |
Positions are closed 4 days later at a lower value.
Selling Price = 21,777
Net Gain / Loss = (HK$2,770.84)
Return on Equity = (49.80%)
Calculations:
| Original Investment | HK$5,564.25 |
| Opening Contract of 1 Lot (Day 1) | (HK$111,285.00) |
| Opening Commission (incl GST) | (HK$160.50) |
| Financing Charges | (HK$49.84) |
| Closing Contract Value (Day 4) | HK$108,885.00 |
| Closing Commission (incl GST) | (HK$160.50) |
| Net Gain / Loss | (HK$2,770.84) |
| Return on Equity = (Net Gain/Original Investment) | (49.80%) |
Example of Short Trade
A client is bearish on Hong Kong 40 Index HKD5 CFD and short sells 1 contract.
Selling Price = 21,577
Scenario 1:
| CFD Bid | CFD Ask | CFD Closing Price | |
|---|---|---|---|
| Day 1 | 21,577 | 21,597 | 21,701 |
| Day 2 | - | - | 21,595 |
| Day 3 | - | - | 21,050 |
| Day 4 | 20,896 | 20,936 | - |
Positions are closed 4 days later at a lower value.
Buying Price = 20,936
Net Gain / Loss = HK$2,857.56
Return on Equity = 52.98%
Calculations:
| Original Investment | HK$5,394.25 |
| Opening Contract of 1 Lot (Day 1) | HK$107,885.00 |
| Opening Commission (incl GST) | (HK$160.50) |
| Financing Charges | (HK$26.44) |
| Closing Contract Value (Day 4) | (HK$104,680.00) |
| Closing Commission (incl GST) | (HK$160.50) |
| Net Gain / Loss | HK$2,857.56 |
| Return on Equity = (Net Gain/Original Investment) | 52.98% |
Scenario 2:
| CFD Bid | CFD Ask | CFD Closing Price | |
|---|---|---|---|
| Day 1 | 21,577 | 21,617 | 21,701 |
| Day 2 | - | - | 21,954 |
| Day 3 | - | - | 22,175 |
| Day 4 | 22,218 | 22,258 | - |
Positions are closed 4 days later at a higher value.
Buying Price = 22,258
Net Gain / Loss = (HK$3,753.05)
Return on Equity = (69.58%)
Calculations:
| Original Investment | HK$5,394.25 |
| Opening Contract of 1 Lot (Day 1) | HK$107,885.00 |
| Opening Commission (incl GST) | (HK$160.50) |
| Financing Charges | (HK$27.05) |
| Closing Contract Value (Day 4) | (HK$111,290.00) |
| Closing Commission (incl GST) | (HK$160.50) |
| Net Gain / Loss | (HK$3,753.05) |
| Return on Equity = (Net Gain/Original Investment) | (69.58%) |
