US World Indices CFD
Track and trade on underlying US market
Trade in the largest capital market in the world, United States, through US Rus2000 USD10 CFD, US SP 500 USD5 CFD, US Tech 100 USD5 CFD and Wall Street Index USD1 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 thus provides clients a cost-effective way to diversify their portfolio.
Take a bullish or bearish view on the US market with the Wall Street Index USD1 CFD by going long or short respectively. And with a leverage of 5 to 20 times, you can use the US World Indices CFDs to make your money work harder for you.
1Contract Details
| CFD (Index) | Underlying Index | Margin Requirements2 | Category of World Indices CFD | Target Spread3 | Value of 1 Index Point |
|---|---|---|---|---|---|
| US Rus2000 USD10 CFD | Russell 2000 | 5% | Cash-Correlating | 0.5 pts | US$10 |
| US SP 500 Index USD5 CFD | S & P 500 | 5% | Cash-Correlating | 0.5 pts | US$5 |
| US Tech 100 Index USD5 CFD | NASDAQ 100 | 20% | Cash-Correlating | 1 pt | US$5 |
| Wall Street Index USD1 CFD | Dow Jones Industrial Average | 5% | Cash-Correlating | 4/6 pts | US$1 |
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.
US World Indices CFDs are traded and settled in USD. There will be NO auto-conversion for USD should there be any margin deficit in these currencies. If there are any margin deficit in the respective ledger, 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 Wall Street Index USD1 CFD and buys 1 contract.
Buying Price = 13,500
Scenario 1:
| CFD Bid | CFD Ask | CFD Closing Price | |
|---|---|---|---|
| Day 1 | 13,496 | 13,500 | 13,547 |
| Day 2 | - | - | 13,569 |
| Day 3 | - | - | 13,584 |
| Day 4 | 13,600 | 13,604 | - |
Positions are closed 4 days later at a higher value.
Selling Price = 13,600
Net Gain / Loss = US$72.47
Return on Equity = 10.74%
Calculations:
| Original Investment | US$675.00 |
| Opening Contract of 1 Lot (Day 1) | (US$13,500.00) |
| Opening Commission (incl GST) | (US$10.70) |
| Financing Charges | (US$6.13) |
| Closing Contract Value (Day 4) | US$13,600.00 |
| Closing Commission (incl GST) | (US$10.70) |
| Net Gain / Loss | US$72.47 |
| Return on Equity = (Net Gain/Original Investment) | 10.74% |
Scenario 2
| CFD Bid | CFD Ask | CFD Closing Price | |
|---|---|---|---|
| Day 1 | 13,496 | 13,500 | 13,547 |
| Day 2 | - | - | 13,480 |
| Day 3 | - | - | 13,442 |
| Day 4 | 13,400 | 13,404 | - |
Positions are closed 4 days later at a lower value.
Selling Price = 13,400
Net Gain / Loss = (US$127.50)
Return on Equity = (18.89%)
| Original Investment | US$675.00 |
| Opening Contract of 1 Lot (Day 1) | (US$13,500.00) |
| Opening Commission (incl GST) | (US$10.70) |
| Financing Charges | (US$6.10) |
| Closing Contract Value (Day 4) | US$13,400.00 |
| Closing Commission (incl GST) | (US$10.70) |
| Net Gain / Loss | (US$127.50) |
| Return on Equity = (Net Gain/Original Investment) | (18.89%) |
Example of Short Trade
A client is bearish on Wall Street Index USD1 CFD and short sells 1 contract
Selling Price = 13,500
Scenario 1:
| CFD Bid | CFD Ask | CFD Closing Price | |
|---|---|---|---|
| Day 1 | 13,500 | 13,504 | 13,581 |
| Day 2 | - | - | 13,502 |
| Day 3 | - | - | 13,467 |
| Day 4 | 13,351 | 13,355 | - |
Positions are closed 4 days later at a lower value.
Buying Price = 13,355
Net Gain / Loss = US$120.26
Return on Equity = 17.82%
Calculations:
| Original Investment | US$675.00 |
| Opening Contract of 1 Lot (Day 1) | US$13,500.00 |
| Opening Commission (incl GST) | (US$10.70) |
| Financing Charges | (US$3.34) |
| Closing Contract Value (Day 4) | (US$13,355.00) |
| Closing Commission (incl GST) | (US$10.70) |
| Net Gain / Loss | US$120.26 |
| Return on Equity = (Net Gain/Original Investment) | 17.82% |
Scenario 2:
| CFD Bid | CFD Ask | CFD Closing Price | |
|---|---|---|---|
| Day 1 | 13,500 | 13,506 | 13,581 |
| Day 2 | - | - | 13,622 |
| Day 3 | - | - | 13,699 |
| Day 4 | 13,718 | 13,724 | - |
Positions are closed 4 days later at a higher value.
Buying Price = 13,724
Net Gain / Loss = (US$248.77)
Return on Equity = (36.85%)
Calculations:
| Original Investment | US$675.00 |
| Opening Contract of 1 Lot (Day 1) | US$13,500.00 |
| Opening Commission (incl GST) | (US$10.70) |
| Financing Charges | (US$3.37) |
| Closing Contract Value (Day 4) | (US$13,724.00) |
| Closing Commission (incl GST) | (US$10.70) |
| Net Gain / Loss | (US$248.77) |
| Return on Equity = (Net Gain/Original Investment) | (36.85%) |
