Product

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.

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 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.

Order Types & Submission

Clients are able to trade World Indices CFD on POEMS, POEMS 2.0, POEMS Mobile (iOS & Android) and CFDTrader 2.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 Infosheet at the bottom of this page for more information.

List of World Indices 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.

Contract Specifications
Value of 1 Index PointS$5
Category of World Indices CFD:Cash-Derived
Contract SizeS$5 x Straits Times Index SGD5 CFD Price x Quantity
Target Spreads (points)53.6
Margin Requirements5%
Order Submission Range+/- 5% from bid/ask price
Market Trading Hours09:01–16:59
Settlement Currency1Singapore Dollars
Dividend Adjustment2Yes
Contract Specifications
Value of 1 Index PointS$20
Category of World Indices CFD:Cash-Correlating
Contract SizeS$20 x Singapore Index SGD20 CFD Price x Quantity
Target Spreads (points)50.25
Margin Requirements5%
Order Submission Range+/- 5% from bid/ask price
Market Trading Hours08:31–17:09, 17:41–04:00
Settlement Currency1Singapore Dollars
Dividend Adjustment2Yes
Contract Specifications
Value of 1 Index PointA$5
Category of World Indices CFD:Cash-Correlating
Contract SizeA$5 x Aust200 Index AUD5 CFD Price x Quantity
Target Spreads (points)53
Margin Requirements5%
Order Submission Range+/- 5% from bid/ask price
Market Trading Hours07:01-12:59 (DS)
08:01-13:59 (Non-DS)
Settlement Currency1Australian Dollars
Dividend Adjustment2Yes
Contract Specifications
Value of 1 Index PointUS$1
Category of World Indices CFD:Cash-Correlating
Contract SizeUS$1 x Indonesia Index USD1 CFD x Quantity
Target Spreads (points)520
Margin Requirements20%
Order Submission Range+/- 5% from bid/ask price
Market Trading Hours10:01-17:14
Settlement Currency1US Dollars
Dividend Adjustment2Yes
Contract Specifications
Value of 1 Index PointRM10
Category of World Indices CFD:Cash-Correlating
Contract SizeRM10 x FBM KLCI MYR10 CFD Price x Quantity
Target Spreads (points)53
Margin Requirements5%
Order Submission Range+/- 5% from bid/ask price
Market Trading Hours08:46–12:45, 14:30–17:13
Settlement Currency1Malaysian Ringgit
Dividend Adjustment2Yes
Contract Specifications
Value of 1 Index PointUS$1
Category of World Indices CFD:Cash-Correlating
Contract SizeUS$1 x FTSE China A50 Index USD1 CFD Price x Quantity
Target Spreads (points)510 5 (09:01-16:29)
20 5 (17:01-04:00)
Margin Requirements20%
Order Submission Range+/- 5% from bid/ask price
Market Trading Hours09:01-16:29, 17:01-04:00
Settlement Currency1US Dollars
Dividend Adjustment2Yes

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Contract Specifications
Value of 1 Index PointHK$5
Category of World Indices CFD:Cash-Correlating
Contract SizeHK$5 x Hong Kong Index HKD5 CFD Price x Quantity
Target Spreads (points)58
Margin Requirements5%
Market Trading Hours09:16–12:00, 13:00–16:29
Order Submission Range+/- 5% from bid/ask price
Settlement Currency1Hong Kong Dollars
Dividend Adjustment2Yes
Contract Specifications
Value of 1 Index Point¥100
Category of World Indices CFD:Cash-Correlating
Contract Size¥100 x Japan 225 Index JPY100 CFD Price x Quantity
Target Spreads (points)510
Margin Requirements5%
Order Submission Range+/- 5% from bid/ask price
Market Trading Hours07:31–14:24, 14:56–04:00
Settlement Currency1Japanese Yen
Dividend Adjustment2Yes
Contract Specifications
Value of 1 Index Point¥1000
Category of World Indices CFD:Cash-Correlating
Contract Size¥1000 x Tokyo Index JPY1000 CFD Price x Quantity
Target Spreads (points)51
Margin Requirements5%
Order Range Submission +/- 5% from bid/ask price
Market Trading Hours08:01–10:34, 10:46–14:05
Settlement Currency1Japanese Yen
Dividend Adjustment2Yes
Contract Specifications
Value of 1 Index PointUS$20
Category of World Indices CFD:Cash-Correlating
Contract SizeUS$20 x Taiwan Index US$20 CFD Price x Quantity
Target Spreads (points)50.3
Margin Requirements20%
Order Submission Range+/- 5% from bid/ask price
Market Trading Hours08:46–13:44
Settlement Currency1US Dollars
Dividend Adjustment2Yes
Contract Specifications
Value of 1 Index PointUS$1
Category of World Indices CFD:Cash-Correlating
Contract SizeUS$1 x Wall Street Index USD1 CFD Price x Quantity
Target Spreads (points)54
Margin Requirements5%
Order Submission Range+/- 5% from bid/ask price
Market Trading Hours07:01–04:00 (DS)
07:01 – 05:00 (Non-DS)
Settlement Currency1US Dollars
Dividend Adjustment2Yes
Contract Specifications
Value of 1 Index PointUS$5
Category of World Indices CFD:Cash-Correlating
Contract SizeUS$5 x US SP 500 Index USD5 CFD Price x Quantity
Target Spreads (points)50.5
Margin Requirements5%
Order Submission Range+/- 5% from bid/ask price
Market Trading Hours07:01–04:00 (DS)
07:01 – 05:00 (Non-DS)
Settlement Currency1US Dollars
Dividend Adjustment2Yes
Contract Specifications
Value of 1 Index PointUS$5
Category of World Indices CFD:Cash-Correlating
Contract SizeUS$5 x US Tech 100 Index USD5 CFD Price x Quantity
Target Spreads (points)51
Margin Requirements5%
Order Submission Range+/- 5% from bid/ask price
Market Trading Hours07:01–04:00 (DS)
07:01 – 05:00 (Non-DS)
Settlement Currency1US Dollars
Dividend Adjustment2Yes

List of Commodities CFD

Contract Specifications
Value of 1 Index PointUS$1
Category of Gold CFDCash-Correlating
Contract SizeUS$1 x Gold USD100 CFD Price x Quantity
Target Spreads (points)5
Margin Requirements20%
Order Submission Range+/- 5% from bid/ask price
Market Trading Hours07:01–04:00 (DS)

07:01-05:00 (NDS)

Settlement Currency1US Dollars
Dividend Adjustment2 No
Contract Specifications
Value of 1 Index PointUS$100
Category of Gold CFDCash-Correlating
Contract SizeUS$100 x Gold USD100 CFD Price x Quantity
Target Spreads (points)5
Margin Requirements20%
Order Submission Range+/- 5% from bid/ask price
Market Trading Hours07:01–04:00 (DS)

07:01-05:00 (NDS)

Settlement Currency1US Dollars
Dividend Adjustment2 No
Contract Specifications
Value of 1 Index PointUS$50
Category of Gold CFDCash-Correlating
Contract SizeUS$50 x Silver USD50 CFD Price x Quantity
Target Spreads (points)5
Margin Requirements20%
Order Submission Range+/- 5% from bid/ask price
Market Trading Hours07:01–04:00 (DS)

07:01-05:00 (NDS)

Settlement Currency1US Dollars
Dividend Adjustment2 No

Important Trading Information

1. Contract Settlement
There will be NO auto-conversion for JP¥, HK$, US$ and A$ 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.

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 closing 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 buys 1 contract. Below are the details of George’s trade.

Details of George’s Trade
Open Price17,900
Closing Price18,100
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 (incl. GST)USD 2.14
Closing Commission (incl. GST)USD 2.14
Finance Charges (FC)Assume 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*2.5%/365
=USD 1.23

Day 2 Finance Charge:
=18,000*1 contract*2.5%/365
=USD 1.23

Day 3 Finance Charge:
=18,050*1 contract*2.5%/365
=USD 1.24

Total Finance Charges
= USD 3.70Net Gain/(Loss)=200-2.14-2.14-3.70
= USD 192.02Return on Equity=192.02/895
= 21.45%

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

Details of George’s Trade
Open Price2,700
Closing Price2,500
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 (incl. GST)SGD 3.00
Closing Commission (incl. GST)SGD 3.00
Finance Charges (FC)Assume 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*2.5%/365
=SGD 0.37

Day 2 Finance Charge:
=2,600*2 contract*2.5%/365
=SGD 0.36

Total Finance Charges = SGD 0.73Net Gain/(Loss)=2000-3.00-3.00-0.73
=SGD 1993.27Return on Equity=1993.27/1350*100
=147.64%