Index and Commodity CFDs

Diversify your Portfolio with Index CFDs

Index CFDs are a type of Contract For Differences (CFD) that enable investors to track and trade an underlying index, such as the Hong Kong Index and S&P 500 index, although their prices may differ from the actual index levels.

By trading index CFDs, investors can diversify across different markets. The ability to take long or short positions through CFDs allows them to trade movements in an entire stock index rather than entering the market by investing in individual companies. This can benefit investors who want to start investing in a new market but are unsure how to proceed because they are unfamiliar with it.

Trade Commodity CFDs to Hedge against Inflation

Phillip CFD also offers commodity CFDs such as Gold USD 1CFD, Gold USD100 CFD, Silver USD50 CFD, and UK Oil USD1 CFD, UK Oil USD100 CFD, US Oil 1CFD, US Oil USD100CFD as a means to for traders to further diversify holdings.

Commodities have been found useful as a means to hedge against inflation as commodity, in particularly oil prices tend to rise when inflation accelerates while stocks tend to perform better when the rate of inflation is stable. Hence traders might want to consider the addition of such commodities into their portfolio to better reduce market risk and volatility.

Order Types & Submission

Customers are able to trade World Indices CFDs on POEMS 2.0, POEMS Mobile 3.0 (iOS & Android), POEMS Pro and POEMS CFD MT5. There are advanced orders types such as Stop Limit and One-Cancel-Other (OCO) to choose from for World Indices CFD. Please refer to Phillip CFD Information sheet at the bottom of this page for more information.

List of Index CFDs

List of Commodity CFDs

Important Trading Information

1. Contract Settlement
There will be NO auto-conversion should there be any margin deficit in any of the currency ledgers. If there is any margin deficit in the respective ledgers, customers should submit conversion request to avoid incurring margin debit interest.

2. Dividend Policy
A dividend adjustment will apply for World Indices CFD, after the ex-dividend date of its underlying component stock. If you have a long position in World Indices CFD, the dividend adjustment will be credited to your account. If you have a short position in World Indices CFD, the dividend adjustment will be debited from your account.

3. Minimum Contract Size
Minimum trade size for all World Indices is 1 contract.

4. Maintenance Margin
The marked-to-market price will be used to calculate the maintenance margin. Phillip CFD reserves the right to amend margin requirements from time to time.

5. Spreads
Spreads are subject to variation, especially in volatile market conditions and may widen during out-of-trading hours including underlying stock exchanges’ holidays.

Example of Trading World Indices CFD

Stock market indices are good indicative measures of the market performance. Indices are usually a baskets of blue chip stocks listed on the exchange and are generally a good measure 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.