TRADING INDICES ON LOT BASED SYSTEM
Utilises a "lot-based" trading system. This simply means that all online cfd trading products are aggregated into standardized trade sizes. These sizes generally replicate the underlying reference instrument (the forex futures commodities trading or cash instrument) or are a fraction of that figure. This simplifies trading by allowing clients to trade in lot increments, and also provides a price for each lot size rather than averaging open and close prices when multiple positions are taken in the same instrument.
The lot size for all indices is in fact one contract (i.e., 1 US 30, 1 UK 100, etc). However, in order to effectively reflect the movement and profit/loss implications of their underlying futures, a minimum/incremental trade size has been established.
For instance, if you wish to trade the US 30 you must buy/sell a minimum of five contracts. If you wish to trade a larger size than that, you would have to trade in multiples of 5, for example 10, 15, 20, and so on. You can apply this methodology to all indices minimum/incremental trade sizes.
TRADING INDICES ON MARGIN
Trade on margin with the guarantee that you never have to pay deficit balance as a result of trading.
FINANCING EXPLAINED
All open positions at 5 p.m. (New York time) are rolled forward to the next trading day. If you hold a long (buy) position then you will be charged financing (LIBOR +3%) to roll the position, and if you are short you may receive financing (LIBOR -3%). For further details, please review our product guide here.
Please note that the Roll S and Roll B displayed in the dealing rates are the costs per contract. Since such is the case, the client will pay or earn whatever the charge is, multiplied by the size of the position the client is holding.
EXAMPLE:
Client is long 10 US 30. Current Roll B is -$0.88 (as displayed in the dealing rates window). Assuming the client is a holder of this position through 5 p.m. (New York time), they will be assessed a charge of $8.80 for that particular trading day.
