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What is a CFD?
CFD stands for CFDs and has existed in different forms for many years. In short, CFD is a financial instrument that uses margin to buy or sell financial products in a transaction without the full value of the product.
CFDs were introduced in the 1990s by stock traders, allowing hedge fund clients to use high leverage and expand downside exposure risk. There is also a benefit to CFDs: no stamp duty is payable. Until the late 1990s, with the rapid development of science and technology, CFDs have attracted much attention, making CFDs become the main market in the past decade.
Because of leverage, traders have the opportunity to leverage in a short period of time in the high volatility of the stock on speculative transactions. Today, CFDs are widely used in many markets, not just in the stock market. Not only professional traders can use, but also available to the retail customers at home use. Related reports statistics: the British stock market more than 25% of the trading volume is the CFD trading. Now Canada, Singapore and Eastern Europe and other countries also began CFD transactions.
If you have never traded CFDs, you can use the demo account on our Platform Trading Tips page to increase your awareness of the trade.
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一、T +0 stock calculation method
In the T + 0 stock CFDs, the stock is traded in USD but settled in US dollars, and the stock was mixed in a unit of 100 Rmb 0.01. For example, the purchase of a 10 yuan RMB stock 1 hand, the choice of 20 with Leverage (5% margin) mode,
1. Freeze the guarantee amount calculation
Order required for the 1 hand 10000 shares X10 shares X5% = 5000RMB, because most of the investment company registered in the foreign exchange server in order to 6.468 exchange rate into US dollars for the 773.04USD.
2. Fees calculation (generally the following single time 4.5 ‰, 1.5 ‰ when sold)
When the next one-time hand 10,000 shares X10 yuan price X4.5 ‰ = 450RMB (6.468 exchange rate converted into US dollars for the 69.57USD)
Selling fee 1 lot 10000 shares X10 yuan Price X1.5 ‰ = 150RMB (6.468 exchange rate converted into US dollars for the 23.19USD, the investment company to a minimum charge of 50USD).
3. Calculation of profit and loss
To 10 yuan shares rose 0.5RMB calculated, 0.5RMB for 50 units equivalent to profit and loss 5000RMB (6.468 exchange rate converted into US dollars for the 773.04USD).
二、the international spot gold silver calculation method
Gold and silver spot transactions in US dollars to the dollar, to hand as a unit, a hand gold and silver margin for a fixed 1000USD, the general investment company gold fee is 1 hand 50USD, 50 points difference is equivalent to 50USD; silver no fee, But there are five points of the point of difference, a point of the spread of 100USD.
Such as the US exchange price of gold 1174USD, next gold fee = 100USD, the equivalent of a loss of 100USD after the account,
Such as the United States and the United States exchange silver 12USD price, next hand silver fee = 500USD, equivalent to the account after the loss of 500USD.