Phillip CFD - Contracts For Difference

Shares CFD Trading		Equities CFD Shares CFD Trading Direct Market Access (CFD)
What is Contracts For Difference? Comparison of CFD & Ordinary Shares Trading Corporate Actions \| Order Types

Comparison of CFD & Ordinary Shares Trading

Shares CFD Trading

Ordinary Shares Trading

T + 30 calendar days settlement

Take better advantage of the market price movement with our longer 30 calendar days ‘CONTRA’ deadline.

3 market days

Take advantage of the market price movement with a 3 business days ‘CONTRA’ deadline.

Low Margin Requirements

Phillip CFD allows you to hold a more diversified portfolio when you can leverage up to 10 times on your initial capital. Trade from margin requirements as low as 10%, which is mark-to-market daily.

3 times investment power

Traditional Margin Trading offers clients a 3 times leverage on your initial capital.

Convenience to short-sell

CFD is the only trading tool that allows you to ‘short-sell’ shares effectively without having to borrow them. It allows investors to overcome ‘short-selling’ restrictions in many of the active stock exchanges.

‘Short-sell’ using SBL account

Before ‘short-selling’, you are required to borrow the shares via the Share Borrowing & Lending (SBL) account.

NO Exchange Clearing & Access fees

No need to pay for exchange clearing and access fees while trading CFD. Small savings means greater return on equity for your investments.

NO Exchange Clearing & Access fees

Exchange clearing and access fees are chargeable on all ordinary shares trading transactions.

Corporate Actions

Dividends¹

A holder of long Phillip CFD on the quoted shares² will receive a credit adjustment³ in the account, where the adjustment is equivalent to the net dividend payment due on the underlying shares. Conversely, a holder of short Phillip CFD will incur a debit adjustment³ where it is equivalent to the gross dividend.

Bonus, Stock Splits, and Reverse Splits¹

Quantity and price adjustment will be made to reflect the market equivalent.
Note: Notwithstanding the foregoing, PSPL reserves the right to close all open positions relating to the underlying security before the ex-date for any corporate action not mentioned above.

¹ In the event there is a combination of Corporate Actions (“CA-Cum All”), where it includes corporate actions other than above mentioned, clients might not be able to enjoy the entitlement and may be required to close off all open positions before the ex-date. Eg. ABC stock announces $0.05 dividend per share (which Phillip CFD originally caters for) & 1 for 10 rights issue at $0.60 (which Phillip CFD originally does not cater for). Ex-date for both Corporate Actions is on 1st October 08. Clients who are holding the above position would not be entitled to both the rights & dividends and would have to liquidate their positions before ex-date.

² Shares refers to companies being listed on the respective exchanges.

³ Dividend adjustments will be made in the declared currency of the underlying shares. Where Phillip CFD does not provide a ledger for the declared currency, the dividend adjustment will be made in SGD. In the event of scrip dividends, client will not receive the entitlement and would have to close off all open positions before the ex-date.

Order Types

Limit Order
Stop Limit Order
Trailing Stop Limit Order
OCO Order
Contingent Order

Protect your profits and minimize your losses with the use of order types such as limit, Stop Limit, Trailing Stop Limit, OCO and contingent orders on SGX, HKSE and KLSE. For NYSE and NASDAQ counters, you have order types such as Limit, Market and Stop orders at your disposal.

Please refer to Phillip CFD Information Sheet for more details on cost and others.