CFD Guide

Margin Requirement

Notional Value x Margin Requirement for the account

*Notional Value = Contract size * Price **Margin Requirement are converted to respective account currency

Example;

Margin Requirement for 1 standard lot of USA.30

Account leverage 1:100

Notional Value = Contract Size x Price 1 x 26,000.00 = 26,000

Margin Calculation = Notional Amount x Account Margin Requirement (1/100 = 0.01 or 1%) 26,000.00 x 1% = $260.00 Margin Requirement for 1 lot of USA30

Expiration Dates

Finance Charge

Holding a Long CFD Stock Index Tracker position after 17:00 EST (New York Time) involves a financing charge calculated as follows:

(P*Q*(Rf Offer+Finance spread))*(1/360)

Where:

P = Price

Q = Number of contracts

Rf Offer = Interbank offer rate

Finance spread = 3%

Holding a Short CFD Stock Index Tracker position after 17:00 EST (New York Time) involves a financing charge calculated as follows:

(P*Q*(Rf Offer+Finance spread))*(1/360)

Where:

P = Price

Q = Number of contracts

Rf Offer = Interbank offer rate

Finance spread = 2.5%

Please consider additional items in your calculations mentioned below:

A floor applies to the relevant Interbank Bid/Offer Rate, i.e. if the rate is negative it will be excluded from the financing calculation.

If the calculated financing rate on a short position (Interbank Bid Rate - Markdown) is negative, the financing credit will become a financing charge.

USD.X (US Dollar Index Futures) has a finance charge of LIBOR +3%

Corporate Events/CFD Dividend adjustments

Dividend payment may positively or negatively impact the overnight costs of your Index CFD and Stock CFD positions.

Dividend figures represent the expectations of our liquidity providers and are subject to change. Index CFD’s are made up of a group of stocks that may be subject to dividends payouts throughout the year.

The actual credit/debit; our daily “Rollover” for Index CFDs and Stock CFDs is a sum of interest rate swap, financing cost, and dividend adjustment. (“swap long/swap short” in the “Live Spreads and Swaps” section of our website is the net daily Roll shown in US$ per one MT4 lot) 

Dividend adjustments take place when position passes ‘Ex-dividend date”. When a dividend is paid on a stock, the value of the stock will drop and therefore so does the value of the index. Short positions will be positively impacted by the drop in Index price, while long positions are negatively impacted and this may result in a financial loss.

You can close your position before 5PM EST one day before “Ex-dividend date” to avoid dividend adjustments.

Dividend Adjustment Schedule

Please Note: dividend adjustment schedule are displayed in Index points and in the counter currency of the instrument (e.g. GBP for UK100, JPY for JPN225) 

The actual credit/debit will be made in client’s account designated currency. (USD for USD account, EUR for EUR account, JPY for JPY account) 

GER30 has no adjustment as it is a total return index so dividends are reinvested into the index 

Contract size per MT4 lot varies by products

 The information contained in this schedule is indicative only and subject to change without notice, FXDD is not bound by its content.