Phillip CFD - Contracts For Difference

Hong Kong 40 Index CFD		Indices Straits Times Index CFD Hong Kong 40 Index CFD Japan 225 Index CFD Wall Street Index CFD US SP 500 Index CFD US Tech 100 Index CFD
What is World Indices CFD? Contract Details \| Order Types Example of Long Trade \| Example of Short Trade

The Hong Kong stock market is Asia's third largest stock exchange in terms of market capitalization and one of the most vibrant and exciting markets to be trading in. Strategically positioned right next to China, there is no wonder why many investors enjoy including this market in their global portfolios. If you're such an investor but are unfamiliar with individual Hong Kong companies to pick the right stocks to trade in, we have the trading instrument just for you.

The Hong Kong 40 Index CFD is a form of Contracts for Difference (CFD) that allows clients to trade the underlying index, although the prices may differ from the actual index levels. It tracks the level of the index and, thus, provides clients a cost-effective way to diversify their portfolio. Take a bullish or bearish view with the Hong Kong 40 Index CFD by going long or short respectively. And with a leverage of 10 times, use the Hong Kong 40 Index CFD to make your money work harder for you.

Contract Details

CFD (Index)	Commission * Rates subjected to changes. GST on Commission	* Finance Charges * Based on 100% mark-to-market contract value * Rates subjected to changes	Contract Details	Current Promotion (s)
Hong Kong 40 Index CFD	HK$30 (per side / lot basis)	Long : 5.0% p.a. (DR) Short : 4.0% p.a. (DR) Based on 100% mark-to-market contract value	Margin Requirements: 10% Min Trade Size: 5 Target Spread:¹ 20 pts Value of 1 Index Point: HK$1 Contract Size: HK$1 x Price of Index Trading Hours (SGT): 9:45 am – 12:30 pm 2:30 pm – 4:15 pm	From 1 Apr to 30 Jun 2010, Commission i) HK $10 per side / lot (Subject to minimum of 5 lots per trade)
				From 1 Apr - 31 Dec 2010, All Trades ii) Waiver of rollover commission for this index

¹ Please refer to World Indices Infosheet for more information.

To view more trading promotions, visit our Global Rates & Promotions page

Hong Kong 40 Index CFD is traded and settled in HKD. There will be NO auto-conversion for HKD should there be any margin deficit in these currencies. Should there be any margin deficit in the respective ledger, clients should submit conversion request to avoid incurring margin debit interest.

Order Types

Market Order
Limit Order
Stop Order

Protect your profits and minimise your losses with the use of order types such as market and stop orders. Have more control over your Hong Kong 40 Index CFD order submission with POEMS & CFDTrader.

Example of Long Trade

A client is bullish on Hong Kong 40 Index CFD and buys 5 contracts worth HK$111,285 at a price of 22,257.
The value of 1 index point is HK$1.

Scenario 1:
Positions are closed 4 days later at a higher value. The client sells his position at a price of 22,717.

	CFD Bid	CFD Ask	CFD Closing Price
Day 1	22,237	22,257	22,207
Day 2	-	-	22,368
Day 3	-	-	22,627
Day 4	22,717	22,737	-

Original Investment	HK$11,128.50
Opening Contract of 1 Lot (Day 1)	(HK$111,285.00)
Opening Commission (incl GST)	(HK$160.50)
Financing Charges	(HK$46.03)
Closing Contract Value (Day 4)	HK$113,585.00
Closing Commission (incl GST)	(HK$160.50)
Net Gain / Loss	HK$1,932.97
Return on Equity = (Net Gain/Original Investment)	17.37%

Scenario 2:
Positions are closed 4 days later at a lower value. The client sells his position at a price of 21,797.

	CFD Bid	CFD Ask	CFD Closing Price
Day 1	22,237	22,257	22,207
Day 2	-	-	22,052
Day 3	-	-	21,899
Day 4	21,777	21,797	-

Original Investment	HK$11,128.50
Opening Contract of 1 Lot (Day 1)	(HK$111,285.00)
Opening Commission (incl GST)	(HK$160.50)
Financing Charges	(HK$45.31)
Closing Contract Value (Day 4)	HK$108,985.00
Closing Commission (incl GST)	(HK$160.50)
Net Gain / Loss	(HK$2,666.31)
Return on Equity = (Net Gain/Original Investment)	(23.96%)

Example of Short Trade

A client is bearish on Hong Kong 40 Index CFD and short sells 5 contracts worth HK$107,885 at a price of 21,577.
The value of 1 index point is HK$1.

Scenario 1:
Positions are closed 4 days later at a lower value. The client buys back his position at a price of 20,936.

	CFD Bid	CFD Ask	CFD Closing Price
Day 1	21,577	21,597	21,701
Day 2	-	-	21,595
Day 3	-	-	21,050
Day 4	20,896	20,936	-

Original Investment	HK$10,788.50
Opening Contract of 1 Lot (Day 1)	HK$107,885.00
Opening Commission (incl GST)	(HK$160.50)
Financing Charges	(HK$35.25)
Closing Contract Value (Day 4)	(HK$104,680.00)
Closing Commission (incl GST)	(HK$160.50)
Net Gain / Loss	HK$2,848.75
Return on Equity = (Net Gain/Original Investment)	26.41%

Scenario 2:
Positions are closed 4 days later at a higher value. The client buys back his position at a price of 22,258.

	CFD Bid	CFD Ask	CFD Closing Price
Day 1	21,577	21,617	21,701
Day 2	-	-	21,954
Day 3	-	-	22,175
Day 4	22,218	22,258	-

Original Investment	HK$10,788.50
Opening Contract of 1 Lot (Day 1)	HK$107,885.00
Opening Commission (incl GST)	(HK$160.50)
Financing Charges	(HK$36.07)
Closing Contract Value (Day 4)	(HK$111,290.00)
Closing Commission (incl GST)	(HK$160.50)
Net Gain / Loss	(HK$3,762.07)
Return on Equity = (Net Gain/Original Investment)	(34.87%)

Index CFD is a highly leveraged trading instrument, and you can lose more than what you put in.