Contract specification for CFD for US stocks
CFD for US stocks (Contracts For Difference - CFD) - is an agreement closed for difference between the price of an underlying contract (in this case - US public companies' stocks) at different points in time.
Buying CFD, you are not buying the underlying contract, and therefore do not become a stockholder of the company. Such contracts are non-deliverable, when trading them profit arises from price difference. This is a speculative mechanism to trade stocks, indexes, futures and commodities without actual delivery of the underlying asset.
CFD for US corporate stocks is a marginal product, allowing an investor to gain higher profit. Such contracts gain ever-greater popularity in the world practice, as they allow both to absorb speculative profit and hedge an investment portfolio if it makes losses at the times of market decline.
Please Mind
On CFD market Lock Position cannot be opened for one and the same instrument.
Example:
You want to buy1 lot (100 stocks) CFD for HPQ stocks priced 27.5. The margin for opening this position comprises $275 (27.5 (price of one stock)*100/10(leverage)) Commission fee makes 27.5*100*0.001=2.75 No commission fee is paid for position closing.
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Tiker
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Company name
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1 lot size
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Margin
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Spread
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Comission
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Trade session
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Trading
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| #AA | Alcoa Inc | 100 | 10.0% | 4 | 0.05% | 17.30 - 00.00 | open
| | #AIG | American International Group, Inc. | 100 | 10.0% | 4 | 0.05% | 17.30 - 00.00 | open
| | #AXP | American Express Co | 100 | 10.0% | 4 | 0.05% | 17.30 - 00.00 | open
| | #BA | Boeing Co | 100 | 10.0% | 4 | 0.05% | 17.30 - 00.00 | open
| | #C | Citigroup Inc | 100 | 10.0% | 4 | 0.05% | 17.30 - 00.00 | open
| | #CAT | Caterpillar Inc | 100 | 10.0% | 4 | 0.05% | 17.30 - 00.00 | open
| | #DD | Dupon EI De Nemours Co | 100 | 10.0% | 4 | 0.05% | 17.30 - 00.00 | open
| | #DIS | Disney Co Walt Hldg Co | 100 | 10.0% | 4 | 0.05% | 17.30 - 00.00 | open
| | #GE | General Electric Co | 100 | 10.0% | 4 | 0.05% | 17.30 - 00.00 | open
| | #GM | General Motors Corp | 100 | 10.0% | 4 | 0.05% | 17.30 - 00.00 | open
| | #GOOG | GOOGLE INC | 100 | 10.0% | 4 | 0.05% | 17.30 - 00.00 | close only | | #HD | Home Pepot Inc | 100 | 10.0% | 4 | 0.05% | 17.30 - 00.00 | open
| | #HON | Honeywell International | 100 | 10.0% | 4 | 0.05% | 17.30 - 00.00 | open
| | #HPQ | Hewlett-Packard Co | 100 | 10.0% | 4 | 0.05% | 17.30 - 00.00 | open
| | #IBM | International Buisness Machine | 100 | 10.0% | 4 | 0.05% | 17.30 - 00.00 | open
| | #INTC | Intel Corporation | 100 | 10.0% | 4 | 0.05% | 17.30 - 00.00 | open
| | #JNJ | Johnson and Jhons Dc | 100 | 10.0% | 4 | 0.05% | 17.30 - 00.00 | open
| | #JPM | Jp Morgan Chase and Co | 100 | 10.0% | 4 | 0.05% | 17.30 - 00.00 | close only | | #KO | Coca Cola Co The | 100 | 10.0% | 4 | 0.05% | 17.30 - 00.00 | open
| | #MCD | McDonalds Corp | 100 | 10.0% | 4 | 0.05% | 17.30 - 00.00 | open
| | #MMM | 3M Company | 100 | 10.0% | 4 | 0.05% | 17.30 - 00.00 | open
| | #MO | Altria Group Inc | 100 | 10.0% | 4 | 0.05% | 17.30 - 00.00 | open
| | #MRK | Merck & Co Inc | 100 | 10.0% | 4 | 0.05% | 17.30 - 00.00 | open
| | #MSFT | Microsoft Corporation | 100 | 10.0% | 4 | 0.05% | 17.30 - 00.00 | open
| | #PFE | Pfizer, Inc. | 100 | 10.0% | 4 | 0.05% | 17.30 - 00.00 | open
| | #PG | Procter & Gamble Co | 100 | 10.0% | 4 | 0.05% | 17.30 - 00.00 | open
| | #T | AT&T Inc. | 100 | 10.0% | 4 | 0.05% | 17.30 - 00.00 | open
| | #UTX | United Technologies Corp | 100 | 10.0% | 4 | 0.05% | 17.30 - 00.00 | open
| | #VZ | Verizon Communications, Inc. | 100 | 10.0% | 4 | 0.05% | 17.30 - 00.00 | open
| | #WMT | Wal-Mart Stores Inc | 100 | 10.0% | 4 | 0.05% | 17.30 - 00.00 | open
| | #XOM | Exxon Mobil Co | 100 | 10.0% | 4 | 0.05% | 17.30 - 00.00 | open
| | #YHOO | YAHOO INC | 100 | 10.0% | 4 | 0.05% | 17.30 - 00.00 | close only |
Commission
fee for one lot comprises $5.
Formula for calculating margin and profit
Margin: lots * contract_size * market_price * kfc / 100
Profit: (close_price-open_price) * contract_size * lots
Right now you can
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If you have questions contact us and we will be glad to help you
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