Stock CFDs are traded exactly like normal share dealing, except with leverage. Investors have access to the major American stocks with ample liquidity. Stock CFDs are traded on bids and offers exactly like the underlying stocks. Investors will buy on the offered price and sell on the bid price.

Margin requirements for Share CFDs are $1,000 per lot (lot size = 1,000 shares)

Lots	Stock	Margin Required
1	YHOO	$1,000
5	MSFT	$5,000
10	GE	$10,000

Therefore you can buy 5,000 shares of say “Microsoft” with margin requirements of only $5,000, which must be available in your account in order to open the position.

Profit and loss calculation:

Buy 1 lot of YHOO at 42.35 / Sell 1 lot of YHOO at 43.35
(43.35 – 42.35) x $10 per tick = $1,000 profit

Sell 5 lots MSFT at 26.72 / Buy 5 lots shares MSFT at 25.72
(26.72 – 25.72) x $10 per tick = $5,000 profit


A real case example

Initiate the account with USD 10,000
Buy 3 lots YHOO at 42.00
Margin required is $3,000
Free Margin is $7,000
You are in margin call if YHOO price falls by USD 2.83 to 39.17 (42.00 – 39.17 = 283 ticks x 3 lots x 10 shares = USD8,500)
On the up-side, for every $1.00 increase in the stock price, you can realize a profit of $3,000.

Interest on overnight open positions

We do not charge interest on overnight positions.

Stock Splits and Other Corporate Action

Open positions of the buyer and seller of the Share CFD will automatically be adjusted to reflect stock splits that are announced by the underlying company. No other rights will be granted to the buyer/seller of the Share CFD, including dividends and voting rights.