Product

World Indices CFD and Commodities CFD

Diversify on World Indices CFD with up to 20 times leverage

World Indices CFD is a form of Contract For Differences (CFD) that allows investors to track and trade the underlying index such as Hong Kong Index and S&P 500 index, although the prices may differ from the actual index levels.

With World Indices CFDs, index traders 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 investors 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 Index CFDs and Cash-Correlating World Index 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 Commodities to hedge against inflation

Phillip CFD also offers commodities 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 World Indices CFD

Contract Specifications
Value of 1 Index Point S$5
Category of World Indices CFD: Cash-Derived
Related Cash Index Straits Times Index
Contract Size S$5 x Straits Times Index SGD5 CFD Price x Quantity
Target Spreads (points)5 7
Margin Requirements 5%
Order Submission Range +/- 20% from bid/ask price
Market Trading Hours 09:00 – 12:00
13:00 – 16:59
Settlement Currency1 Singapore Dollars
Dividend Adjustment2 Yes
Contract Specifications
Value of 1 Index Point S$1
Category of World Indices CFD: Cash-Correlating
Related Cash Index MSCI Singapore Index
Contract Size S$1 x Singapore Index SGD1 CFD Price x Quantity
Target Spreads (points)5 0.25
Margin Requirements 5%
Order Submission Range +/- 20% from bid/ask price
Market Trading Hours 08:31 – 17:09
17:51 – 04:00
Settlement Currency1 Singapore Dollars
Dividend Adjustment2 Yes
Contract Specifications
Value of 1 Index Point S$20
Category of World Indices CFD: Cash-Correlating
Related Cash Index MSCI Singapore Index
Contract Size S$20 x Singapore Index SGD20 CFD Price x Quantity
Target Spreads (points)5 0.25
Margin Requirements 5%
Order Submission Range +/- 20% from bid/ask price
Market Trading Hours 08:31 – 17:09
17:51 – 04:00
Settlement Currency1 Singapore Dollars
Dividend Adjustment2 Yes
Contract Specifications
Value of 1 Index Point RM10
Category of World Indices CFD: Cash-Correlating
Related Cash Index FTSE Bursa Malaysia KLCI
Contract Size RM10 x KL Index MYR10 CFD Price x Quantity
Target Spreads (points)5 3
Margin Requirements 5%
Order Submission Range +/- 20% from bid/ask price
Market Trading Hours 08:46 – 12:45
14:30 – 17:13
Settlement Currency1 Malaysian Ringgit
Dividend Adjustment2 Yes
Contract Specifications
Value of 1 Index Point US$1
Category of World Indices CFD: Cash-Correlating
Related Cash Index FTSE China A50 Index
Contract Size US$1 x China A50 Index USD1 CFD Price x Quantity
Target Spreads (points)5 10
Margin Requirements 20%
Order Submission Range +/- 20% from bid/ask price
Market Trading Hours 09:01 – 16:29
17:01 – 04:00
Settlement Currency1 US Dollars
Dividend Adjustment2 Yes
Contract Specifications
Value of 1 Index Point HK$1
Category of World Indices CFD: Cash-Correlating
Related Cash Index Hang Seng Index
Contract Size HK$1 x Hong Kong Index HKD1 CFD Price x Quantity
Target Spreads (points)5 8
Margin Requirements 5%
Market Trading Hours 09:16 – 12:00
13:00 – 16:29
17:16 – 02:45
Order Submission Range +/- 20% from bid/ask price
Settlement Currency1 Hong Kong Dollars
Dividend Adjustment2 Yes
Contract Specifications
Value of 1 Index Point HK$5
Category of World Indices CFD: Cash-Correlating
Related Cash Index Hang Seng Index
Contract Size HK$5 x Hong Kong Index HKD5 CFD Price x Quantity
Target Spreads (points)5 8
Margin Requirements 5%
Market Trading Hours 09:16 – 12:00
13:00 – 16:29
17:16 – 02:45
Order Submission Range +/- 20% from bid/ask price
Settlement Currency1 Hong Kong Dollars
Dividend Adjustment2 Yes
Contract Specifications
Value of 1 Index Point HK$1
Category of World Indices CFD: Cash-Correlating
Related Cash Index Hang Seng TECH Index
Contract Size HK$1 x Hong Kong Tech Index HKD1 CFD Price x Quantity
Target Spreads (points)5 11
Margin Requirements 5%
Market Trading Hours 09:16 – 12:00
13:00 – 16:29
17:16 – 02:45
Order Submission Range +/- 20% from bid/ask price
Settlement Currency1 Hong Kong Dollars
Dividend Adjustment2 Yes
Contract Specifications
Value of 1 Index Point HK$10
Category of World Indices CFD: Cash-Correlating
Related Cash Index Hang Seng TECH Index
Contract Size HK$10 x Hong Kong Tech Index HKD10 CFD Price x Quantity
Target Spreads (points)5 11
Margin Requirements 5%
Market Trading Hours 09:16 – 12:00
13:00 – 16:29
17:16 – 02:45
Order Submission Range +/- 20% from bid/ask price
Settlement Currency1 Hong Kong Dollars
Dividend Adjustment2 Yes
Contract Specifications
Value of 1 Index Point HK$1
Category of World Indices CFD: Cash-Correlating
Related Cash Index Hang Seng China Enterprises Index
Contract Size HK$1 x H-Shares Index HKD1 CFD Price x Quantity
Target Spreads (points)5 8
Margin Requirements 5%
Market Trading Hours 09:16 – 12:00
13:00 – 16:29
17:16 – 02:45
Order Submission Range +/- 20% from bid/ask price
Settlement Currency1 Hong Kong Dollars
Dividend Adjustment2 Yes
Contract Specifications
Value of 1 Index Point ¥100
Category of World Indices CFD: Cash-Correlating
Related Cash Index Nikkei 225
Contract Size ¥100 x Japan 225 Index JPY100 CFD Price x Quantity
Target Spreads (points)5 10
Margin Requirements 5%
Order Submission Range +/- 20% from bid/ask price
Market Trading Hours 07:31 – 14:24
14:56 – 04:00
Settlement Currency1 Japanese Yen
Dividend Adjustment2 Yes
Contract Specifications
Value of 1 Index Point ¥1000
Category of World Indices CFD: Cash-Correlating
Related Cash Index Tokyo Stock Price Index
Contract Size ¥1000 x Tokyo Index JPY1000 CFD Price x Quantity
Target Spreads (points)5 1
Margin Requirements 5%
Order Submission Range +/- 20% from bid/ask price
Market Trading Hours 08:01 – 10:34
10:46 – 14:05
Settlement Currency1 Japanese Yen
Dividend Adjustment2 Yes
Contract Specifications
Value of 1 Index Point US$1
Category of World Indices CFD: Cash-Correlating
Related Cash Index Dow Jones Industrial Average
Contract Size US$1 x Wall Street Index USD1 CFD Price x Quantity
Target Spreads (points)5 4
Margin Requirements 5%
Order Submission Range +/- 20% from bid/ask price
Market Trading Hours 07:01 – 04:00 (DS)
07:01 – 05:00 (Non-DS)
Settlement Currency1 US Dollars
Dividend Adjustment2 Yes
Contract Specifications
Value of 1 Index Point US$1
Category of World Indices CFD: Cash-Correlating
Related Cash Index S&P 500
Contract Size US$1 x US SP 500 Index USD1 CFD Price x Quantity
Target Spreads (points)5 0.5
Margin Requirements 5%
Order Submission Range +/- 20% from bid/ask price
Market Trading Hours 07:01 – 04:00 (DS)
07:01 – 05:00 (Non-DS)
Settlement Currency1 US Dollars
Dividend Adjustment2 Yes
Contract Specifications
Value of 1 Index Point US$5
Category of World Indices CFD: Cash-Correlating
Related Cash Index S&P 500
Contract Size US$5 x US SP 500 Index USD5 CFD Price x Quantity
Target Spreads (points)5 0.5
Margin Requirements 5%
Order Submission Range +/- 20% from bid/ask price
Market Trading Hours 07:01 – 04:00 (DS)
07:01 – 05:00 (Non-DS)
Settlement Currency1 US Dollars
Dividend Adjustment2 Yes
Contract Specifications
Value of 1 Index Point US$1
Category of World Indices CFD: Cash-Correlating
Related Cash Index Nasdaq-100
Contract Size US$1 x US Tech 100 Index USD1 CFD Price x Quantity
Target Spreads (points)5 1
Margin Requirements 5%
Order Submission Range +/- 20% from bid/ask price
Market Trading Hours 07:01 – 04:00 (DS)
07:01 – 05:00 (Non-DS)
Settlement Currency1 US Dollars
Dividend Adjustment2 Yes
Contract Specifications
Value of 1 Index Point US$5
Category of World Indices CFD: Cash-Correlating
Related Cash Index Nasdaq-100
Contract Size US$5 x US Tech 100 Index USD5 CFD Price x Quantity
Target Spreads (points)5 1
Margin Requirements 5%
Order Submission Range +/- 20% from bid/ask price
Market Trading Hours 07:01 – 04:00 (DS)
07:01 – 05:00 (Non-DS)
Settlement Currency1 US Dollars
Dividend Adjustment2 Yes
Contract Specifications
Value of 1 Index Point 1 GBP
Category of World Indices CFD: Cash-Correlating
Related Cash Index FTSE 100
Contract Size 1 GBP x UK 100 Index GBP1 CFD Price x Quantity
Target Spreads (points)5 1.0
Margin Requirements 5%
Order Submission Range +/- 20% from bid/ask price
Market Trading Hours 08:01 – 04:00 (DS)
09:01 – 05:00 (Non-DS)
Settlement Currency1 GBP
Dividend Adjustment2 Yes
Contract Specifications
Value of 1 Index Point US$1
Category of World Indices CFD: Cash-Correlating
Related Cash Index FTSE Taiwan Index
Contract Size US$1 x Taiwan Index 1USD CFD Price x Quantity
Target Spreads (points)5 0.75
Margin Requirements 20%
Order Submission Range +/- 20% from bid/ask price
Market Trading Hours 08:46 – 13:44
14:16 – 04:00
Settlement Currency1 US Dollars
Dividend Adjustment2 Yes

List of Commodities CFD

Contract Specifications
Value of 1 Index Point US$1
Category of Commodities CFD Cash-Correlating
Related Cash Index Spot Gold USD
Contract Size US$1 x Gold USD1 CFD Price x Quantity
Target Spreads (points)5
Margin Requirements 20%
Order Submission Range +/- 20% from bid/ask price
Market Trading Hours 07:01 – 04:00 (DS)

07:01 – 05:00 (NDS)

Settlement Currency1 US Dollars
Dividend Adjustment2  No
Contract Specifications
Value of 1 Index Point US$100
Category of Commodities CFD Cash-Correlating
Related Cash Index Spot Gold USD
Contract Size US$100 x Gold USD100 CFD Price x Quantity
Target Spreads (points)5
Margin Requirements 20%
Order Submission Range +/- 20% from bid/ask price
Market Trading Hours 07:01–04:00 (DS)

07:01-05:00 (NDS)

Settlement Currency1 US Dollars
Dividend Adjustment2  No
Contract Specifications
Value of 1 Index Point US$50
Category of Commodities CFD Cash-Correlating
Related Cash Index Spot Silver USD
Contract Size US$50 x Silver USD50 CFD Price x Quantity
Target Spreads (points)5
Margin Requirements 20%
Order Submission Range +/- 20% from bid/ask price
Market Trading Hours 07:01–04:00 (DS)

07:01-05:00 (NDS)

Settlement Currency1 US Dollars
Dividend Adjustment2  No
Contract Specifications
Value of 1 Index Point US$1
Category of Commodities CFD Cash-Correlating
Related Cash Index ICE Brent Crude
Contract Size US$1 x UK Oil USD1 CFD Price x Quantity
Target Spreads (points)5 0.03
Margin Requirements 20%
Order Submission Range +/- 20% from bid/ask price
Market Trading Hours 08:01–04:00 (DS)

09:01-05:00 (NDS)

Settlement Currency1 US Dollars
Dividend Adjustment2  No

Under rare circumstances, Oil CFD prices may fall below $0. When the price falls to or below $0, trading in Oil CFDs will be suspended. No new orders will be accepted and all existing open positions will be closed out at $0. The duration of trading suspension will be at the discretion of Phillip CFD. We advise all clients to trade with caution during times of volatility.

Contract Specifications
Value of 1 Index Point US$100
Category of Commodities CFD Cash-Correlating
Related Cash Index ICE Brent Crude
Contract Size US$100 x UK Oil USD100 CFD Price x Quantity
Target Spreads (points)5 0.03
Margin Requirements 20%
Order Submission Range +/- 20% from bid/ask price
Market Trading Hours 08:01–04:00 (DS)

09:01-05:00 (NDS)

Settlement Currency1 US Dollars
Dividend Adjustment2  No

Under rare circumstances, Oil CFD prices may fall below $0. When the price falls to or below $0, trading in Oil CFDs will be suspended. No new orders will be accepted and all existing open positions will be closed out at $0. The duration of trading suspension will be at the discretion of Phillip CFD. We advise all clients to trade with caution during times of volatility.

Contract Specifications
Value of 1 Index Point US$1
Category of Commodities CFD Cash-Correlating
Related Cash Index WTI Crude
Contract Size US$1 x US Oil USD1 CFD Price x Quantity
Target Spreads (points)5 0.03
Margin Requirements 20%
Order Submission Range +/- 20% from bid/ask price
Market Trading Hours 08:01–04:00 (DS)

09:01-05:00 (NDS)

Settlement Currency1 US Dollars
Dividend Adjustment2  No

Under rare circumstances, Oil CFD prices may fall below $0. When the price falls to or below $0, trading in Oil CFDs will be suspended. No new orders will be accepted and all existing open positions will be closed out at $0. The duration of trading suspension will be at the discretion of Phillip CFD. We advise all clients to trade with caution during times of volatility.

Contract Specifications
Value of 1 Index Point US$100
Category of Commodities CFD Cash-Correlating
Related Cash Index WTI Crude
Contract Size US$100 x US Oil USD100 CFD Price x Quantity
Target Spreads (points)5 0.03
Margin Requirements 20%
Order Submission Range +/- 20% from bid/ask price
Market Trading Hours 08:01–04:00 (DS)

09:01-05:00 (NDS)

Settlement Currency1 US Dollars
Dividend Adjustment2  No

Under rare circumstances, Oil CFD prices may fall below $0. When the price falls to or below $0, trading in Oil CFDs will be suspended. No new orders will be accepted and all existing open positions will be closed out at $0. The duration of trading suspension will be at the discretion of Phillip CFD. We advise all clients to trade with caution during times of volatility.

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.

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.

George is bullish on Wall Street Index USD1 CFD and decides to long 1 contract. Below are the details of George’s trade.

Details of George’s Trade
Open Price 17,900
Closing Price 18,100
Initial Margin =17,900*USD 1 per point*5%*1 contract
=USD 895
Profit/(Loss) = (Closing Price – Opening Price)*price per point*Quantity
= (18,100-17,900)*USD 1 per point*1
= USD 200
Opening Commission  USD 2.00
Closing Commission  USD 2.00
Finance Charges (FC) Assume that Long Finance Charge is 4.5% p.a., and George closes the position on Day 4:

Closing Price of Wall Street Index USD1 CFD:

Day 1: 17,950
Day 2: 18,000
Day 3: 18,050


Day 1 Finance Charge:
=17,950*1 contract*USD 1*4.5%/365
=USD 2.21

Day 2 Finance Charge:
=18,000*1 contract*USD 1*4.5%/365
=USD 2.22

Day 3 Finance Charge:
=18,050*1 contract*USD 1*4.5%/365
=USD 2.23

Total Finance Charges= USD 2.21 + USD 2.22 + USD 2.23
= USD 6.66

Net Gain/(Loss)=200-2-2-6.66
= USD 189.34

Return on Equity=189.34/895*100
= 21.16%

On the same day, George is bearish on Straits Times Index SGD5 CFD and decides to short 2 contracts. Below are the details of George’s trade.

Details of George’s Trade
Open Price 2,700
Closing Price 2,500
Initial Margin =2,700*SGD5 per point*5%*2 contracts
=SGD 1,350
Profit/(Loss) = (Opening Price – Closing Price)*Quantity
= (2,700-2,500)*2*SGD 5 per point
= SGD 2,000
Opening Commission  SGD 3 X 2 Contracts = SGD 6
Closing Commission  SGD 3  X 2 Contracts = SGD 6
Finance Charges (FC) Assume that the Short Finance Charge is 2.75% p.a., and George closes the position on Day 3:

Closing Price of Straits Times Index SGD5 CFD:

Day 1: 2,700
Day 2: 2,600


Day 1 Finance Charge:
=2,700*2 contract*SGD 5*2.75%/365
=SGD 2.03

Day 2 Finance Charge:
=2,600*2 contract*SGD 5*2.75%/365
=SGD 1.96

Total Finance Charges = SGD 2.03 + SGD 1.96
= SGD3.99

Net Gain/(Loss)=2000-6-6-3.99
=SGD 1984.01

Return on Equity= 1984.01/1350*100
=146.96%