CFD Product Guide.

Transcription

1 CFD Product Guide

2 Contents Notice Risk Warning 1. Trading Hours 2. Contract Size \ Contract value 3. Tick size \Tick value\spread value 4. Margin Requirements 5. Overnight Rollover Cash Index Overnight Rollover Energy Overnight Rollover Metals Overnight Rollover 6. Expiration Cash Index Contract Expiration Expiration Energy Expiration Metals

3 Notice / Risk Warning Notice This product summary should be read in conjunction with our Terms of Business. Whilst every effort has been made to ensure the accuracy of the guide, this information is subject to change, often without notice and therefore is for guidance only. If you ever have any questions, please contact FX CHOICE directly. FX Choice does not permit the practice of arbitrage when trading Contracts for Difference (CFDs). Transactions that rely on price latency arbitrage opportunities may be revoked and FX Choice reserves the right to make necessary corrections or adjustments on the account, without prior notice. In accordance with FX Choice's Terms of Business, accounts that rely on arbitrage strategies may be subjected to intervention, which may include widening the spreads on your account. Risk Warning Foreign exchange (forex) trading carries a high degree of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss in excess of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with forex trading, and seek advice from an independent nancial advisor if you have any doubts. FX Choice products are not offered in any way in connection with, or with the endorsement of the relevant underlying exchange. The use of the word futures contract and relevant exchange by FX Choice is simply in order to indicate the characteristics of the product on offer and the characteristics of the service. Forex trading allows you to potentially pro t or loss from the uctuations in the price of the underlying instrument. The price of is based on the price of the underlying instrument and is not traded on an exchange, despite the status, or location of the underlying instrument. Therefore, forex trading is considered an over-the-counter (OTC) product. Please note that commensurate with the opening/closing of the market for the underlying instrument, traders may experience gaps in market prices. Due to the volatility expressed during these time periods, trading at the open or at the close, can involve additional risk and must be factored into any trading decision. These time periods are speci cally mentioned because they are associated with the lowest levels of market liquidity and can be followed by signi cant movements in prices for both the spread bet, and the underlying instrument. There is a substantial risk that stop-loss orders, left to protect open positions held overnight, may be executed at levels signi cantly worse than their speci ed price. 03

4 Trading Hours Trading hours are based on when their underlying reference markets are open. FX CHOICE indices will not be open for trading during holidays in which the reference markets are closed. You may also note that some indices have an intraday break in addition to a daily closing. During these times you will not be able to place stop and limit orders, close existing positions or open new ones. All trading functionalities will cease during intraday breaks, after the daily closing and upon the end of week closing. When the market is closed you will not be able to place any trades, stops or limits. Ticker MT Basic Days & Times.FRANCECash CAC 40 Index Mon.-Fri.: 09:00-23:00.USTECHCash E-Mini NASDAQ-100 Index Mon.: 01:00-23:15, 23:30-24:00 ; Tue-Thu.: 00:00-23:15, 23:30-24:00 ;.US500Cash E-mini S&P 500 Index Fri.: 00:00-23:15.JAPANCash Nikkei 225 Index Mon.-Fri.: 02:00-23:15.EURO50Cash DJ EURO STOXX 50.DE30Cash.UK100Cash.US30Cash DAX Index FTSE 100 Index Mini-sized Dow (USD5) Index Mon.-Fri.: 09:00-23:00 Mon.: 01:00-23:15, 23:30-24:00 ; Tue-Thu.: 00:00-23:15, 23:30-24:00 ; Fri.: 00:00-23:15 AUS200Cash S&P/ASX index of Australian Mon.-Thu.: 00:50-07:30, 08:10-23:00.SPAINCash IBEX 35 index of Spanish Mon.-Fri.: 10:00-18:30 04

5 1. Trading Hours Ticker MT Basic Days & Times.HKCash Hang Seng index Mon.-Fri.: 03:15-06:00, 07:00-10:15.ITALYCash FTSE MIB index Mon.-Fri.: 10:00-18:40.SWISSCash Swiss 20 Index Mon.-Fri.: 09:00-18:25.WTICrude Crude Oil (WTI) Mon.-Thu.: 01:00-24:00, Fri.: 01:00-23:45.BrentCrud Brent Crude Oil Mon.-Thu.: 03:00-24:00, Fri.: 03:00-23:45 Natural_Gas Natural Gas Mon.-Thu.: 01:00-24:00, Fri.: 01:00-23:45 Copper Copper Mon.-Thu.: 01:00-24:00, Fri.: 01:00-23:45 Cocoa Cocoa Mon.-Fri.: 11:45-20:30 Coffee Coffee Mon.- Fri.: 11:20-20:30 Sugar Sugar Mon.- Fri.: 10:30-20:00 Wheat Wheat Mon.-Fri: 03:00-15:45, 16:30-21:20 DXY DXY Mon.-Fri.: 03:00-24:00 Corn Corn Mon.-Fri: 03:00-15:45, 16:30-21:15 Soybean Soybean Mon.-Fri.: 03:00-15:45, 16:30-21:20 OrangeJuice OrangeJuice Mon.-Fri.: 15:00-21:00 05

6 1. Contract Size / Contract Value FX Choice products are aggregated into standardized trade sizes. These sizes generally replicate the underlying reference instrument (the futures or cash instrument) or are a fraction of that gure: Symbol Contract size unit Contract Currency Bid* (price per Ask* (price per Calcula on of the contract value: Contract value = Contract size * unit price (buy 1 Lot) (sell 1 Lot) (buy 1 Lot), USD (sell 1 Lot), USD.FRANCECash 10 EUR EUR 10 * CAC 40 Index quote EUR EUR USD USD.USTECHCash 20 USD USD 20 * E-Mini NASDAQ-100 Index quote USD USD USD USD.US500Cash 50 USD USD 50 * E-Mini S&P 500 Index quote USD USD USD USD.JAPANCash 5 USD USD 5 * Nikkei 225 Index quote USD USD USD USD.EURO50Cash 10 EUR EUR 10 * DJ EURO STOXX 50 quote EUR EUR USD USD.DE30Cash 25 EUR EUR 25 * DAX Index quote EUR EUR USD USD.UK100Cash 10 GBP GBP 10 * FTSE 100 Index quote GBP GBP USD USD.US30Cash 5 USD USD 5 * Mini-sized Dow (USD5) Index quote USD USD USD USD.SPAINCash 10 EUR EUR * IBEX 35 Index quote EUR EUR USD USD.HKCash 50 HKG HKD 50 * Hang Seng Index quote HKD HKD USD USD.ITALYCash 5 EUR EUR 5 * FTSE MIB Index quote EUR EUR USD USD.SWISSCash 10 CHF CHF 10 * Swiss 20 Index quote CHF CHF USD USD.WTICrude 1000 USD Barrels * unite price USD USD USD USD.BrentCrud 1000 USD Barrels * unit price USD USD USD USD Natural_Gas USD MMBtu * unit price USD USD USD USD Copper USD Pounds * unit price USD USD USD USD Cocoa 10 USD Metric tons * unit price USD USD USD USD Coffee USD Pounds * unit price USD USD USD USD Sugar USD Pounds * unit price USD USD USd USD Wheat 5000 USD Bushels * unit price USD USd USD USD DXY 1000 USD USD 1000 * Dollar Index quote USD USD USD USD Corn 5000 USD Bushels * unit price USD USD USD USD Soybean 5000 USD Bushels * unit price USD USD USD USD OrangeJuice USD Pounds * unit price USD USD USD USD 06

7 3. Tick size/ Tick value / Spread value The tick size and tick value on display in the terminal MetaTrader show the cost per point cost for the minimum contract size. As pro t and loss are converted into the account currency, a tick value is associated with each product. For example, if the trading account is denominated in USD, then all of the pro t and loss will be calculated in USD. If a client traded in the UK100Cash, which is priced in GBP, FX CHOICE terminal will automatically convert pro t and loss into USD. 07

8 3. Tick size/ Tick value / Spread value Symbol Contract size unit (in one lot) Tick Size Tick Value* (contract currency**) Tick Value* (account currency USD**) Typical Spread (ask-bid) Spread value, (contract currency**) Spread value, (account currency USD**).FRANCECash EUR 5.00 EUR 5.41 EUR 1.00 EUR EUR EUR.USTECHCash USD 5.00 USD 5.00 USD 1.00 USD USD USD.US500Cash USD USD USD 0.50 USD USD USD.JAPANCash USD USD USD USD USD USD.EURO50Cash EUR EUR USD 1.00 EUR EUR EUR.DE30Cash EUR EUR EUR 1.00 EUR EUR EUR.UK100Cash GBP 5.00 GBP 7.22 USD 2.00 GBP GBP USD.US30Cash USD 5.00 USD 5.00 USD 2.00 USD USD USD.SPAINCash EUR 5.00 EUR 5.41 USD 8.00 EUR EUR USD.HKCash HKD 5.00 HKD 0.64 USD HKD HKD USD.ITALYCash EUR 5.00 EUR 5.41 USD EUR EUR USD.SWISSCash CHF CHF 9.93 USD 4.00 CHF CHF USD.WTICrude USD USD USD USD USD USD.BrentCrud USD USD USD USD USD USD Natural_Gas USD USD USD USD USD USD Copper USD USD USD USD USD USD Cocoa USD USD USD 2.00 USD USD USD Coffee USD USD USD USD USD USD Sugar USD USD USD USD USD USD Wheat USD USD USD USD USD USD DXY USD 5.00 USD 5.00 USD USD USD USD Corn USD USD USD USD USD USD Soybean USD USD USD USD USD USD OrangeJuice USD 7.50 USD 7.50 USD USD USD USD *course of :40 **Tick value = Contract size unit (in one lot) * Tick size ***Spread value = Typical spread * Contract size unit (in one lot) 08

9 4. Margin Requirements FX Choice products are aggregated into standardized trade sizes. These sizes generally replicate the underlying reference instrument (the futures or cash instrument) or are a fraction of that gure. To calculate the margin required to place the trade size, simply multiply the contract cost by the margin percent (per contract), which is displayed in the table. Please refer to point 2 user's guide for the detailed explanation about contract value. Symbol (buy 1 Lot) (sell 1 Lot) (buy 1 Lot), USD (sell 1 Lot), USD Margin, % (the percentage of the contract value) Margin (Buy 1 Lot) Margin (Sell 1 Lot).FRANCECash EUR EUR USD USD 2.00% USD USD.USTECHCash USD USD USD USD 2.00% USD USD.US500Cash USD USD USD USD 2.00% USD USD.JAPANCash USD USD USD USD 2.00% USD USD.EURO50Cash EUR EUR USD USD 2.00% USD USD.DE30Cash EUR EUR USD USD 2.00% USD USD.UK100Cash GBP GBP USD USD 2.00% USD USD.US30Cash USD USD USD USD 2.00% USD USD.SPAINCash EUR EUR USD USD 2.00% USD USD.HKCash HKD HKD USD USD 2.00% USD USD.ITALYCash EUR EUR USD USD 2.00% USD USD.SWISSCash CHF CHF USD USD 2.00% USD WTICrude USD USD USD USD 3.00% USD USD.BrentCrud USD USD USD USD 3.00% USD USD Natural_Gas USD USD USD USD 3.00% USD USD Copper USD USD USD USD 5.00% USD USD Cocoa USD USD USD USD 5.00% USD USD Coffee USD USD USD USD 5.00% USD USD Sugar USD USD USD USD 5.00% USD USD Wheat USD USD USD USD 5.00% USD USD DXY USD USD USD USD 5.00% USD Corn USD USD USD USD 5.00% USD USD Soybean USD USD USD USD 5.00% USD USD OrangeJuice USD USD USD USD 5.00% USD USD 09

10 5. Overnight Rollover Cash Index Overnight Rollover Our daily interest debit or credit amounts (hereinafter referred to as rollover ) are based on the total face value of the position. All cash index positions will remain open until they are closed by the client or the position is liquidated due to insuf cient margin to support the open position. Please note that the rollover detailed on MetaTrader is for 1 lot index CFD and not the minimum trade size. Interest rates are a factor in any market. FX CHOICE's daily interest debit or credit amounts (hereafter rollover ) are based on the total face value of the position. Our rollover rates are calculated by referencing the relevant 3 month LIBOR for all index products. Each day, the rollover amounts per lot are shown transparently in the simple dealing rates window. Index positions that are open at the close of business on Friday will incur 3 day rollover. It is worth noting that FX CHOICE references the relevant under lying 3 months LIBOR rate for the native currency which an instrument is quoted. For example, GER 30 is quoted in euro, therefore, FX CHOICE will reference 3 month Euro LIBOR. Similarly, for clients who have open UK100 positions, the reference interest rate would be 3 month GBP LIBOR and so forth. For example, if 3 month USD LIBOR is 0.50% and FX CHOICE is applying a haircut of -1.50% a long position would pay -1.00% / 360 per day, whereas a holder of a short position would pay -2.00% / 360 per day. Financing Calculation F = Overnight nance charge F = Trade size C = Contract size P = Closing price as determined by FX CHOICE R = Relevant LIBOR rate and deduct 150 basis points d = Number of days, i.e., 360 for all others And is calculated as follows: F = ( S x C x P x R ) * d/360 Example: CFD US500Cash ( E-mini S&P500 ) S = Trade size = 1 lot C = Contract size = 50 ( Contract speci cation ) P = Closing price = (Price MetaTrader ) 3 month US Dollar Libor = % R buy = % - 1.5% = % R sell = % 1.5% = % D = 1 day F buy= 1*50* *( % - 1.5%)*1/360 = $ F sell = 1*50* *( % - 1.5%)*1/360 = $ 10

11 5. Overnight Rollover Energy Overnight Rollover Since Energy products are forward instruments, no overnight credits/debits or dividends are applicable. Metals Overnight Rollover All open metal positions are rolled to the next trading day. Depending on whether you are long (buy) or short (sell) you will either be debited or credited rollover interest on a daily basis. Details of FX CHOICE's rollover rates (rolls) are detailed on the MetaTrader in a transparent manner.. Please note that all open positions at the close of business on Wednesday incur a 3 day rollover debit/credit, and bank holidays will affect the number of days that a position is rolled forward. Copper is the only metal which is not subject to rollover interest. 11

12 6. Expiration Cash Index Contract Expiration All cash index positions will remain open until they are closed by the client or the position is liquidated due to insuf cient margin to support the open position. Expiration Energy Energy products have a monthly expiration (please see the tables below). Clients that hold an open position on the 'FX CHOICE Expiration' will be closed at our bid/offer at 21:00 GMT for WTICrude and Natural GAS, and at 21:15 GMT* for BrentCrud, which means the client will realize any oating P/L at the time it is closed. There are no rollovers for all oil contracts offered. *FX CHOICE's of cial monthly expirations are based on Eastern Time (ET) or New York time. Due to the observance of daylight saving time in the United States, monthly expirations listed in GMT are subject to change. Example: Client is long On the day of FX CHOICE Expiration, the expiring month is trading at The customer position is closed at and the pro t is credited to the clients trading account. All pending Stop and Limit orders that are associated with the expiring contract will be cancelled. Client will need to re-establish another long position (assuming they wish to) and reinsert Stop and Limit orders to the new open position. Year Contact Month WTICrude BrentCrude Natural_GAS Reference Expira on FX Choice Expira on Reference Expira on FX Choice Expira on Reference Expira on FX Choice Expira on January 21-Dec 18-Dec 16-Dec 15-Dec 29-Dec 23-Dec 2016 February 20-Jan 19-Jan 14-Jan 13-Jan 27-Jan 26-Jan March 22-Feb 19-Feb 29-Jan 28-Jan 25-Feb 24-Feb April 21-Mar 18-Mar 29-Feb 28-Feb 29-Mar 28-Mar May 20-Apr 19-Apr 31-Mar 30-Mar 27-Apr 26-Apr June 20-May 19-May 29-Apr 28-Apr 26-May 25-May July 21-Jun 20-Jun 31-May 30-May 28-Jun 27-Jun August 20-Jul 19-Jul 29-Jul 28-Jul 29-Aug 26-Aug September 22-Aug 19-Aug 29-Jul 28-Jul 29-Aug 26-Aug October 20-Sep 19-Sep 31-Aug 30-Aug 28-Sep 27-Sep November 20-Oct 19-Oct 30-Sep 29-Sep 27-Oct 26-Oct December 21-Nov 18-Nov 31-Oct 28-Oct 28-Nov 25-Nov All pending stop and limit orders that are associated with the expiring contract will be cancelled. 12

13 6. Expiration Expiration Metals Copper is the only metal to have an expiration. All other metal trades will remain open until such time the client closes the position or there is insuf cient margin to support the open position. For Copper, the open position will be closed by FX CHOICE. Clients that hold an open position in Copper on the 'FX CHOICE Expiration' will be closed at our bid/offer at 21:00 GMT*, which means the client will realize any oating P/L at the time it is closed. There are no rollovers for Copper contracts. FX CHOICE's of cial expirations are based on Eastern Time or New York time. Due to the observance of daylight savings time in the United States, monthly expirations listed in GMT are subject to change. Example: Client is long On the day of FX CHOICE Expiration, the expiring month is trading at The customer position is closed at and the pro t is credited to the clients trading account. All pending Stop and Limit orders that are associated with the expiring contract will be cancelled. Client will need to re-establish another long position (assuming they wish to) and reinsert Stop and Limit orders to the new open position. Copper Expirations REFERENCE FX Choice 2016 CONTRACT MONTH EXPIRATION EXPIRATION MARCH 29-Feb 26-Feb MAY 29-Apr 28-Apr JUNE 29-May 30-May 13

14 Thank you for choosing us