Buy Wall Street
All our stock index CFD contracts are commission-free: the only charge is our highly competitive dealing spread.
Our full range of Stock Index CFDs are listed in the Contract Details. You can trade in full, mini or micro contract sizes, and you can trade stock indices using our exclusive SGD-denominated CFDs too.
Opening the stock index position
On the date in question, our quote for Wall Street is 11211/11213, based on the current market level. You decide to buy three standard contracts at 11213. (One contract is the equivalent of US$10 per index point.) There is no commission to pay on this index trade.
To open your position you supply a deposit of 5% of the value of the position, i.e. US$16, 819.5 (11213 x US$10 x 3 contracts x 5%). You will then make or lose US$30 for every point the sell price rises above or falls below 11213.
Closing the position
The market moves against you over the next couple of days and you decide to cut your losses. Our quote has fallen to 11084/11086, and you close your position by selling three contracts at 11084.
Your gross loss on the trade is calculated as follows:
Loss on trade
| Opening level | 11213 |
| Closing level | 11084 |
| Difference | 129 |
Gross loss: 129 points x 3 contracts x US$10 per point = US$3,870
To calculate the net result of this example you also have to include interest and dividend adjustments. Interest adjustments are applied daily to stock index trades in exactly the same way as to Share CFDs. Dividend adjustments are applied whenever a stock in the relevant index goes ex-dividend. For more information see Contract Details.
Risk
Use Guaranteed Stops to limit your risk on stock index CFD trades. A Guaranteed Stop specifies an absolute level at which your position will be closed should the market move against you.
When you use a Guaranteed Stop, a premium is added to your opening price as risk- protection. The Limited Risk premiums which apply to individual stock indices are listed in the Contract Details.
The margin requirement for a Limited Risk CFD trade is equal to the amount which would be lost if the Stop were triggered.
Example: Shorting Wall Street with Limited Risk
You want to go short but are concerned about the possibility of a rally.
Opening the stock index CFD position
On the date in question, our quote for Wall Street is 10850/10852. You decide to sell one contract with Limited Risk protection. (One contract is the equivalent of US$10 per index point.) So your position is opened at 10850 (the bid price) minus 4 (the Limited Risk premium) = 10846.
Placing the Guaranteed Stop on your CFD
You decide to put your Guaranteed Stop at 10,926. So the most you can lose on your position (excluding interest and dividend adjustments) is:
Maximum possible loss
| Stop level | 10926 |
| Opening level | 10846 |
| Difference | 80 |
Maximum possible loss (excluding adjustments): 80 points x 1 contract x US$10 per point = US$800
Triggering the Guaranteed Stop on your CFD
Steady falls for Wall Street suggest your position is correct however, a few days later the stock index rallies and our quote rises to 11175/11177. Your position is automatically closed out at 10928. You have lost USD800, but the Limited Risk protection has saved you from a bigger loss, potentially more than US$3310.
To calculate the overall result of your transaction, you also have to include interest and dividend adjustments. Interest adjustments are applied daily to stock index trades in exactly the same way as to Share CFDs. Dividend adjustments are applied whenever a stock in the relevant index goes ex-dividend. For more information see Contract Details.