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 Point S$5
Category of World Indices CFD: Cash-Derived
Contract Size S$5 x Straits Times Index SGD5 CFD Price x Quantity
Target Spreads (points)5 3.6
Margin Requirements 5%
Order Submission Range +/- 5% from bid/ask price
Market Trading Hours 09:01–16:59
Settlement Currency1 Singapore Dollars
Dividend Adjustment2 Yes
Contract Specifications
Value of 1 Index Point S$20
Category of World Indices CFD: Cash-Correlating
Contract Size S$20 x Singapore Index SGD20 CFD Price x Quantity
Target Spreads (points)5 0.25
Margin Requirements 5%
Order Submission Range +/- 5% from bid/ask price
Market Trading Hours 08:31–17:09, 17:41–04:00
Settlement Currency1 Singapore Dollars
Dividend Adjustment2 Yes
Contract Specifications
Value of 1 Index Point A$5
Category of World Indices CFD: Cash-Correlating
Contract Size A$5 x Aust200 Index AUD5 CFD Price x Quantity
Target Spreads (points)5 3
Margin Requirements 5%
Order Submission Range +/- 5% from bid/ask price
Market Trading Hours 07:01-12:59 (DS)
08:01-13:59 (Non-DS)
Settlement Currency1 Australian Dollars
Dividend Adjustment2 Yes
Contract Specifications
Value of 1 Index Point US$1
Category of World Indices CFD: Cash-Correlating
Contract Size US$1 x Indonesia Index USD1 CFD x Quantity
Target Spreads (points)5 20
Margin Requirements 20%
Order Submission Range +/- 5% from bid/ask price
Market Trading Hours 10:01-17:14
Settlement Currency1 US Dollars
Dividend Adjustment2 Yes
Contract Specifications
Value of 1 Index Point RM10
Category of World Indices CFD: Cash-Correlating
Contract Size RM10 x FBM KLCI MYR10 CFD Price x Quantity
Target Spreads (points)5 3
Margin Requirements 5%
Order Submission Range +/- 5% 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
Contract Size US$1 x FTSE China A50 Index USD1 CFD Price x Quantity
Target Spreads (points)5 10 5 (09:01-16:29)
20 5 (17:01-04:00)
Margin Requirements 20%
Order Submission Range +/- 5% from bid/ask price
Market Trading Hours 09:01-16:29, 17:01-04:00
Settlement Currency1 US Dollars
Dividend Adjustment2 Yes

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Contract Specifications
Value of 1 Index Point HK$5
Category of World Indices CFD: Cash-Correlating
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
Order Submission Range +/- 5% 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
Contract Size ¥100 x Japan 225 Index JPY100 CFD Price x Quantity
Target Spreads (points)5 10
Margin Requirements 5%
Order Submission Range +/- 5% 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
Contract Size ¥1000 x Tokyo Index JPY1000 CFD Price x Quantity
Target Spreads (points)5 1
Margin Requirements 5%
Order Range Submission  +/- 5% 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$20
Category of World Indices CFD: Cash-Correlating
Contract Size US$20 x Taiwan Index US$20 CFD Price x Quantity
Target Spreads (points)5 0.3
Margin Requirements 20%
Order Submission Range +/- 5% from bid/ask price
Market Trading Hours 08:46–13:44
Settlement Currency1 US Dollars
Dividend Adjustment2 Yes
Contract Specifications
Value of 1 Index Point US$1
Category of World Indices CFD: Cash-Correlating
Contract Size US$1 x Wall Street Index USD1 CFD Price x Quantity
Target Spreads (points)5 4
Margin Requirements 5%
Order Submission Range +/- 5% 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
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 +/- 5% 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
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 +/- 5% 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

List of Commodities CFD

Contract Specifications
Value of 1 Index Point US$100
Category of Gold CFD Cash-Correlating
Contract Size US$100 x Gold USD100 CFD Price x Quantity
Target Spreads (points)5
Margin Requirements 20%
Order Submission Range +/- 5% from bid/ask price
Market Trading Hours 07:01–04:00 (DS)

07:01-05:00 (NDS)

Settlement Currency1 US 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 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 (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: 18,050Day 1 Finance Charge:
=17,950*1 contract*2.5%/365
=USD 1.23Day 2 Finance Charge:
=18,000*1 contract*2.5%/365
=USD 1.23Day 3 Finance Charge:
=18,050*1 contract*2.5%/365
=USD 1.24Total Finance Charges
= USD 3.70 
Net Gain/(Loss) =200-2.14-2.14-3.70
= USD 192.02
Return 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 Price 2,700
Closing Price 3,000
Initial Margin =2,700*SGD5 per point*5%*2 contracts
=SGD 1,350
Profit/(Loss) = (Opening Price – Closing Price)*Quantity
= (2,700-3,000)*2*SGD 5 per point
= -SGD 3,000
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 Wall Street Index USD1 CFD:
Day 1: 2,800
Day 2: 2,900Day 1 Finance Charge:
=2,800*2 contract*2.5%/365
=SGD 0.38Day 2 Finance Charge:
=2,900*2 contract*2.5%/365
=SGD 0.40Total Finance Charges = SGD 0.78
Net Gain/(Loss) =-3000-3.00-3.00-0.78
=(SGD 3006.78)
Return on Equity =-3006.78/1350
=-222.72%