Stock CFDs are traded exactly like normal share dealing, except with leverage. Investors have access to the major American stocks with ample liquidity. Stock CFDs are traded on bids and offers exactly like the underlying stocks. Investors will buy on the offered price and sell on the bid price.
Margin requirements for Share CFDs are $1,000 per lot (lot size = 1,000 shares)
Lots
Stock
Margin Required
1
YHOO
$1,000
5
MSFT
$5,000
10
GE
$10,000
Therefore you can buy 5,000 shares of say “Microsoft” with margin requirements of only $5,000, which must be available in your account in order to open the position.
Profit and loss calculation:
Buy 1 lot of YHOO at 42.35 / Sell 1 lot of YHOO at 43.35 (43.35 – 42.35) x $10 per tick = $1,000 profit
Sell 5 lots MSFT at 26.72 / Buy 5 lots shares MSFT at 25.72 (26.72 – 25.72) x $10 per tick = $5,000 profit
A real case example
Initiate the account with USD 10,000 Buy 3 lots YHOO at 42.00 Margin required is $3,000 Free Margin is $7,000 You are in margin call if YHOO price falls by USD 2.83 to 39.17 (42.00 – 39.17 = 283 ticks x 3 lots x 10 shares = USD8,500) On the up-side, for every $1.00 increase in the stock price, you can realize a profit of $3,000.
Interest on overnight open positions
We do not charge interest on overnight positions.
Stock Splits and Other Corporate Action
Open positions of the buyer and seller of the Share CFD will automatically be adjusted to reflect stock splits that are announced by the underlying company. No other rights will be granted to the buyer/seller of the Share CFD, including dividends and voting rights.
This website is currently under construction. We do not make any representation or warranty as to the accuracy or completeness of this website or the content of this website. If you require up to date information relating to Orion Global Financial Services Overseas, this website or the content of this website please contact us on info@OrionGFS.com. We apologise for any inconvenience.
