How To Trade Index CFDs On Forexstar
With Forexstar, investors gain access to major index CFDs on one trading platform. No matter what market you invest in, we provide the same tight dealing spread. Furthermore, there are no extra custodian or exchange fees, just a financing rate for long CFDs positions (conversely, you receive interest for short positions).
EXAMPLE 1: Buy Dow Jones Industrial Average Index
| Day 1 | Buy 1 lot DJI30 at 13,250 |
| Day 5 | Sell 1 lot DJI30 at 13,600 |
| Gross Profit | USD 350.00 |
| Financing Cost | USD 8.83 |
| Net Profit* | USD 341.17 |
*Based on financing rate of 6%. Long positions incur a financing cost. The minimum tradable lot is 1.
EXAMPLE 2: Sell Dow Jones Industrial Average Index
| Day 1 | Buy 1 lot DJI30 at 13,250 |
| Day 5 | Sell 1 lot DJI30 at 13,600 |
| Gross Profit | USD -350.00 |
| Financing Cost | USD 4.42 |
| Net Profit* | USD -345.58 |
*Based on financing rate of 3%. Short positions receive a financing cost. The minimum tradable lot is 1.
EXAMPLE 3: Buy S&P500 Index
| Day 1 | Buy 10 lot SPX500 at 1,400.00 |
| Day 5 | Sell 10 lot SPX500 at 1,310.00 |
| Gross Profit | USD -900.00 |
| Financing Cost | USD 4.67 |
| Net Profit* | USD -904.67 |
*Based on financing rate of 6%. Long positions incur a financing cost. The minimum tradable lot is 10.
EXAMPLE 4: Sell S&P500 Index
| Day 1 | Sell 10 lot SPX500 at 1,400.00 |
| Day 5 | Buy 10 lot SPX500 at 1,310.00 |
| Gross Profit | USD 900.00 |
| Financing Cost | USD 2.33 |
| Net Profit* | USD 902.33 |
*Based on financing rate of 3%. Short positions receive a financing cost. The minimum tradable lot is 10.
EXAMPLE 5: Buy Nikkei225 Index
| Day 1 | Buy 100 lot NIK225 at 15,300 |
| Day 5 | Sell 100 lot NIK225 at 16,000 |
| Gross Profit | USD 636.36 (JPY 70000/110) |
| Financing Cost | USD 4.64 |
| Net Profit* | USD 631.72 |
*Based on USDJPY rate of 110.00 and financing rate of 2%. Long positions incur a financing cost. The minimum tradable lot is 100.
EXAMPLE 6: Sell Nikkei225 Index
| Day 1 | Sell 100 lot NIK225 at 15,300 |
| Day 5 | Buy 100 lot NIK225 at 16,000 |
| Gross Profit | USD -636.36 (JPY 70,000/110) |
| Financing Cost | USD 0 |
| Net Profit* | USD -636.36 |
*Based on USDJPY rate of 110.00 and financing rate of 0%. Short positions receive a financing cost. Financing cost derived from market rate minus spread. If resultant cost is zero or less, no financing cost is paid to short positions. The minimum tradeable lot is 100.
Note: Examples do not include commissions, if any.
Disclaimer:
The risk of loss in leveraged foreign exchange, CFDs and other derivatives trading can be substantial. Investors should therefore carefully consider whether such trading is suitable in light of their own financial position and investment objectives and if necessary seek appropriate professional advice. Investors are advised to read「Products Disclosure Statements」carefully before making any investment decision.「Products Disclosure Statements」 and 「Investment Advisors Disclosure Statements」 are available on request and free of charge from KVB Kunlun.
The information contained in this document does not constitute financial or investment advice. All information, prices and opinions are subject to change without prior notice.The product information may not apply to all KVB Kunlun companies; please contact our representatives in your country or region, if you have any enquiries.
