Contracts For Difference


CFDs or contracts for differences are traded on margin between a trader their CFD provider, in an agreement to pay or receive the cash differential between the opening and closing prices of a transaction. CFDs allow retail investors to trade products that may not usually be accessible to retail investors,such as equity indices and futures. Trading CFDs is flexible you can trade long (if you think it is going up in value) or short (if you think it is going down in value) and there are no commission, trading fees, clearing fees or stamp duty to pay.

One Single Account

You can trade across multiple asset classes from just one account.Trade CFDs, forex pairs and precious metals on a single dealing platform. Clients can build their diversified investment portfolio in this account and can easily manage and monitor their exposure.

Hedging with CFDs

You can use CFDs to short sell and to profit from falling market. Traders can use this facility as a hedging tool against a portfolio. So if you have a portfolio of UK Blue chip stocks, which you wish to keep for the longer term, despite the fact you believe that stock prices could fall in value .You could mitigate any near term losses by shorting the CFDs for the UK 100.

*The use of leverage can magnify profits but it can do the same for losses. Forex and CFDs are leveraged products, involve a high level of risk and can result in the loss of more than your invested capital. Please consult our full risk warning notice.


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Contract Information

MT4 Code P/L Currency Trading Hours (GMT)* Break Time (GMT) Target Spread Digits Trade Size Minimum (lots) Trade Size Maximum (lots) Trade Size Step (lots) Standard Contract Size Minimum Value per Tick (CCY)
A50 USD 01:00 – 08:30, Monday – Friday Daily from 08:30 – 01:00 12.5 1 0.1 10 0.1 10 1 USD
AUS200 AUD 23:50 – 21:00 (Fri 20:45), Sunday – Friday Daily from 06:30 – 07:10, 21:00 – 23:50 2.3 1 0.1 10 0.05 20 2 AUD
DE30 EUR 06:00 – 20:00, Monday – Friday Daily from 20:00 – 06:00 1.8 2 0.1 10 0.05 20 2 EUR
ES35 EUR 06:00 – 18:00, Monday – Friday Daily from 18:00 – 06:00 10.3 1 0.1 10 0.1 10 1 EUR
F40 EUR 06:00 – 20:00, Monday – Friday Daily from 20:00 – 06:00 3.2 1 0.1 10 0.1 10 1 EUR
HK50 HKD 01:15 – 08:15, Monday – Friday Daily from 00:00 – 01:15, 04:00 – 05:00, 08:15 – 00:00 10 1 0.1 10 0.02 50 5 HKD
JP225 JPY 23:00 – 20:15, Sunday – Friday Daily 20:15 – 23:00 13.5 1 0.1 10 0.01 500 50 JPY
STOXX50 EUR 06:00 – 20:00, Monday – Friday Daily from 20:00 – 06:00 3.2 1 0.1 10 0.1 10 1 EUR
UK100 GBP 06:00 – 20:00, Monday – Friday Daily from 20:00 – 06:00 2.7 1 0.1 10 0.1 10 1 GBP
US30 USD 22:00 – 22:00 (Fri 20:15), Sunday – Friday Daily 20:15 – 20:30, 21:00 – 22:00 4.3 1 0.1 10 0.1 10 1 USD
US100 USD 22:00 – 22:00 (Fri 20:15), Sunday – Friday Daily 20:15 – 20:30, 21:00 – 22:00 2.3 1 0.1 10 0.05 20 2 USD
US500 USD 22:00 – 22:00 (Fri 20:15), Sunday – Friday Daily 20:15 – 20:30, 21:00 – 22:00 0.83 2 0.1 10 0.02 50 5 USD
USOil USD 22:00 – 20:45, Sunday – Friday Daily 20:45 – 22:00 0.5 3 0.1 10 0.01 1000 10 USD
UKOil USD 00:00 – 20:45, Monday – Friday Daily 20:45 – 24:00 0.5 3 0.1 10 0.01 1000 10 USD
Symbol Average Spread in Points Occurences Digits Spread
A50 11.34788428 401021 1 11.34788428
AUS200 1.759491771 465656 1 1.759491771
DE30 1.333920058 2881478 2 1.333920058
ES35 8.891931569 812438 1 8.891931569
F40 2.016589399 1666076 1 2.016589399
HK50 8.440337578 2990177 1 8.440337578
JP225 12.84690205 622911 1 12.84690205
STOXX50 2.531941459 202389 1 2.531941459
UK100 1.937511111 1689806 1 1.937511111
US30 3.05830767 2593182 1 3.05830767
US500 0.622186056 610021 2 6.221860559
USOil 0.048299502 1760089 3 4.82995019
UKOil 0.043898641 2240082 3 4.389864121
Limited risk accounts are offered on both standard and ECN. ECN has an additional total commission charge of $15 per lot.

Leverage

Leverage allows you to hold a larger positions than your initial cash deposit would otherwise allow. Your deposit is multiplied or leveraged by your broker to increase the value of your underlying investment. The higher the level of leverage applied,then the larger the position a trader can hold open, for the same size of initial deposit*.

*The use of leverage can magnify profits but it can do the same for losses. Forex and CFDs are leveraged products, involve a high level of risk and can result in the loss of more than your invested capital. Please consult our full risk warning notice.

For example,a client using leverage or gearing of 30:1 could control a position in the forex market of $30,000 with a margin requirement of just $1,000.

Leverage or gearing can raise the potential for high returns when the market moves in your favour. However, you should note that leverage will act against you if and when the market moves in the opposite direction to your prediction.

Leverage Levels

Different leverage level applies to different Account Settings.

Margin Requirement

When an investor opens an account with a broker, an initial deposit is required in order for the investor to be able to open a position in the market. This cash deposit acts as a buffer to cover any credit risk / market movement. Depending on their agreement, the investor will allowed by the broker to leverage their deposit up to a predetermined limit.

The margin requirement for a forex trade is calculated by using the following formula:

Margin = (Lot Size * Contract Size * Opening Price) / Leverage

Examples below based on a Standard /Classic account 1:30.

Forex

Margin requirement for one standard contract position in EUR/USD at 1.2500 is calculated as follows:
Margin = (1 * 100,000 * $1.2500) / (30) = $4166

Spot Gold

Margin requirement of one standard contract position in Gold at 1579.01 is calculated as follows:
Margin = (1 * 100 * $1579.01) / (20) = $7895

Spot Silver

Margin requirement for one standard contract position in Silver at 28.70 is calculated as follows:
Margin = (1 * 5000 * $28.70) / (20) = $7175

Note: Interest is not required to be paid on the borrowed amount, but if the investor decides to hold his position overnight, interest will be charged as the rolled over rates on the total positions held.

Margin Call

Margin Call is a level set by a brokerage that defines the minimum amount of money required to trade in the market. When your account falls below the margin call level, you will need to make an additional deposit to maintain your positions. Alternatively, you can close some of your positions to reduce your required margin. At Blackwell Global, Margin Call is set at 50%.

Stop Out Level

In the event you are unable to maintain sufficient funds in your account after hitting Margin Call, and if your account value depreciates to the Stop Out level, your positions will be closed automatically to prevent further loss to your capital. At Blackwell Global, Stop Out level is set at 50%.

Swaps

Blackwell Global CFD trading is only undertaken on a “spot” basis with all trades settled two business days from inception, as per market convention. Blackwell Global uses internationally recognised benchmarks based on overnight deposit rates as a basis for determining applicable interest rates. Spreads around these benchmark interest rates are applied to determine the rollover interest rate.

This rollover interest is calculated and applied to accounts at 23:59 (GMT+2) Server Time on a daily basis. Please note Blackwell Global do not arrange for or undertake physical delivery.

Any open positions held from Friday to Saturday, on a trade date basis, are charged three times the rollover interest . This additional payment takes account of interest that would have been charged on Saturday and Sunday when the market is closed.

Please note that some CFD products will have a dividend payout on certain days. This dividend will reflect in that day’s swap, so the swap may have a fluctuation on the dividend payout date.

Product Short swap Long swap Time Updated
A50 0 0 2018-09-13 06:15:08
AUS200 -56.815 35.8398 2018-09-13 06:15:06
DE30 -144.815 -120.626 2018-09-24 18:15:10
ES35 -9.4963 -7.0367 2018-09-13 06:15:07
F40 -83.3921 58.6269 2018-09-24 18:15:11
HK50 -13.53 -45.32 2018-09-24 18:15:06
JP225 -25.4705 -24.8765 2018-09-24 18:15:09
STOXX50 -3.8731 -3.2263 2018-09-13 18:14:51
UK100 -8.7659 -6.5868 2018-09-13 06:15:08
UKOil -10.604 -1.111 2018-09-24 18:15:10
US100 -12.6478 -3.4166 2018-09-13 06:15:06
US30 -38.368 -17.2381 2018-09-13 06:15:07
US500 -59.477 -2.266 2018-09-13 18:14:52
USOil -44.055 17.271 2018-09-13 06:15:07
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