CFDs

With CFDs (Contracts for Difference) you can trade different asset classes such
as S&P 500 Index and WTI Light Sweet Crude Oil.

CFDs are traded on margin between a trader and a CFDs provider so as to exchange the cash difference between the opening price and closing price of a transaction. Usually less accessible to retail investors, CFDs products allow retail clients to trade shares, equity indices and futures. Without commission, trading fees, clearing fees or stamp duty, CFDs can be an alternative to trading on the forex market.

One Single Account

Traders can create an ideal multi-investment portfolio using a single trading account that enables them to trade multiple asset classes, making portfolio management and monitoring much easier.

Hedging with CFDs

Allowing you to short sell and to profit from falling market prices, CFDs can be used as a hedging tool against portfolio investments. For example, if you have a portfolio of US tech stocks which you wish to keep for long term, but feel that there is a short-term downside risk to it, you could mitigate a short-term loss by shorting the CFDs for NASDAQ.

MT4 Code P/L Currency Trading Hours (GMT)* Break Time (GMT) Target Spread Digits Trade Size Minimum (lots) Trade Size Maximum (lots) Trade Size Step (lots) Standard Contract Size Minimum Value per Tick (CCY)
A50 USD 01:00 – 08:30, Monday – Friday Daily from 08:30 – 01:00 22 1 0.1 10 0.1 10 1 USD
AUS200 AUD 23:50 – 21:00 , Sunday – Friday Daily from 06:30 – 07:10, 21:00 – 23:50 2.5 1 0.1 10 0.05 20 2 AUD
DE30 EUR 06:00 – 20:00, Monday – Friday Daily from 20:00 – 06:00 1.5 2 0.1 10 0.05 20 2 EUR
ES35 EUR 06:00 – 18:00, Monday – Friday Daily from 18:00 – 06:00 6 1 0.1 10 0.1 10 1 EUR
F40 EUR 06:00 – 20:00, Monday – Friday Daily from 20:00 – 06:00 2.5 1 0.1 10 0.1 10 1 EUR
HK50 HKD 01:15 – 08:30, Monday – Friday Daily from 04:00 – 05:00, 08:30 – 01:15 13 1 0.1 10 0.02 50 5 HKD
JP225 JPY 23:00 – 20:15, Sunday – Friday Daily 20:15 – 23:00 16.5 1 0.1 10 0.01 500 50 JPY
STOXX50 EUR 06:00 – 20:00, Monday – Friday Daily from 20:00 – 06:00 3.5 1 0.1 10 0.1 10 1 EUR
UK100 GBP 06:00 – 20:00, Monday – Friday Daily from 20:00 – 06:00 2.5 1 0.1 10 0.1 10 1 GBP
US30 USD 22:00 – 21:00, Sunday – Friday Daily 20:15 – 20:30, 21:00 – 22:00 5 1 0.1 10 0.1 10 1 USD
US100 USD 22:00 – 21:00, Sunday – Friday Daily 20:15 – 20:30, 21:00 – 22:00 2.1 1 0.1 10 0.05 20 2 USD
US500 USD 22:00 – 21:00, Sunday – Friday Daily 20:15 – 20:30, 21:00 – 22:00 7 2 0.1 10 0.02 50 0.5 USD
USOil USD 22:00 – 21:00, Sunday – Friday Daily 21:00 – 22:00 5 3 0.1 10 0.01 1000 1 USD
UKOil USD 00:00 – 21:00, Monday – Friday Daily 21:00 – 24:00 3.5 3 0.1 10 0.01 1000 1 USD

***Out of Market Hours Clause

Although the selected CFD symbols are open 24 hours a day, we are not obliged to quote prices or accept orders to which Out
of Hours Trading applies whenever the relevant exchange is closed for business. You may refer to the table for the indicative
spreads for the active trading session for reference.

*Our Server Time is currently set to GMT+2 due to Europe Daylight Savings changes.

Market_Watch_Screenshot

Leverage

Leverage allows traders to hold a larger positions than their initial cash deposit. In other words, this means that their initial outlay is supplemented to increase the value of their underlying investments. The higher the leverage, the larger the position the trader can execute for the same amount of initial deposit.

For example, a client using 100:1 leverage can hold a position in the forex market of $100,000 with a margin of $1,000. For a 200:1 leverage, the client will need a $500 margin to hold the same position.

Leverage increases the potential of high return when the market moves in a trader’s favour. However, traders are to note that leverage will similarly act against them when the market moves against their predictions.

Leverage Levels

Different leverage level applies to different Account Settings.

Margin Requirement

Prior to opening a position in the market, an initial deposit is required when an trader opens an account with a broker. This cash deposit will act as a deposit to cover any credit risks that the trader might undertake. Depending on the agreement, the investor could be able to leverage up to a certain limit as set by the broker.

The margin requirement for a forex trade is calculated by using the following formula:

Margin = (Lot Size * Contract Size * Opening Price) / Leverage

Examples below based on a Standard /Classic account 1:100.

Forex Margin requirement for one standard contract position in EUR/USD at 1.2500 is calculated as follows:
Margin = (1 * 100,000 * $1.2500) / (100) = $1250.00
Spot Gold Margin requirement of one standard contract position in Gold at 1579.01 is calculated as follows:
Margin = (1 * 100 * $1579.01) / (100) = $1579.01
Spot Silver Margin requirement for one standard contract position in Silver at 28.70 is calculated as follows:
Margin = (1 * 5000 * $28.70) / (100) = $1435.00

Note: Interest is not required to be paid on the borrowed amount, but if the investors decides to hold his position overnight, interest will be charged as the rolled over rates on the total positions held.

Margin Call

A Margin Call is a level nominated by a brokerage that sets out the minimum amount of money required to trade in the market. If your account falls below the margin call level, you will need to make a further deposit in order to maintain your open positions. Or should you prefer you can close some of your outstanding positions to reduce your margin requirement. At Blackwell Global, Margin Call is set at 120%.

Stop Out Level

In the event that you are unable to maintain sufficient funds in your account after reaching the Margin Call level, and if the value of your account subsequently depreciates to the Stop Out level, your positions will be closed automatically, in order to prevent further losses to your capital. At Blackwell Global, Stop Out level is set at 80%.

Swaps

Also referred to as Rollover Interest, swaps are charged when holding onto a position overnight due to the difference in interest rates between the base metal and the quote currency.

Blackwell Global deals CFDs trading on a “spot” basis. Trades are all settled two business days from inception as per market convention. Swaps are automatically calculated and settled at 21:59 GMT (Server Time 22:59) on a daily basis. Blackwell Global does not arrange for physical delivery.

Open positions on a trade date basis that are held from Wednesday to Thursday will be charged three times the value. The extra payment is to cover the interest that would normally have been charged on Saturday and Sunday when the market is closed.

Please note that some CFD products will have a dividend payout on certain days. This dividend will reflect in that day’s swap, so the swap may have a fluctuation on the dividend payout date.

Symbol long short

Example 1 Trading on the Futures Exchange

Day 1 WTI Crude Oil is at $106.11
SHORT 8 futures contracts at $106.11

Opening value =
8 X 1000 (contract size) X $106.11 = $848,880.00
Margin requirement (Capital outlay) =
$848,880.00 X 1% = $8,488.80
Day 2 WTI Crude Oil drops to $105.20
CLOSE 8 futures contracts at $105.20

Closing value =
8 X 1000 (contract size) X $105.20 = $841,600.00
P & L =
Payoff – Exchange/Futures Commission Merchant fees (sell and buy)
= ($848,880.00 – $841,600.00) – ($15×2)
= $7,250.00

Example 2 Trading of Crude Oil Futures CFD

Day 1 WTI Crude Oil is at $106.11
SHORT 8 lots at $106.11

Opening value =
8 (lots) X 1000 (contract size) X $106.11 = $848,880.00
Capital outlay (based on margin of $1500 per lot) =
$1,500 x 8 =$12,000.00
Day 2 WTI Crude Oil drops to $105.20
CLOSE 8 lots at $105.20

Closing value =
8(lots) X 1000 (contract size) X $105.20 = $841,600.00
P & L = Payoff + Rollover interest=($848,880.00 – $841,600.00) + (-$32.07)
= $7,247.93

Example 3 Trading of Index CFD

Day 1 S&P500 Index is at 1,677.00
BUY 5 lots at 1,677.00

Opening value =
5 lots X 50 (contract size) X 1,677.00 = $419,250.00
Capital outlay (based on margin of $1500 per lot) =
$1,500 x 5 = $7,500
Day 2 S&P500 Index rises to 1,686.20
CLOSE 5 lots at 1,686.20

Closing value =
5 lots X 1 contract size X 1,686.20 = $8,431.00
P & L = Payoff + Rollover interest =
= ($8,431.00 – $8,385.00) + (-$0.38)
= $45.62