Contract For Difference

Why Tradeview Forex?

TradeView Forex offers immediate access to trading tools:

  • Prices on stocks
  • Sectors
  • Indices
  • Currencies
  • Commodities and Interest rates

It doesn't matter where and how you want to trade: we offer online and mobile trading services that keep you ready for the next trade. Our team of experts, dealers and customer service specialists are always available to provide support to each customer.

TVF provides spreads and margins for every platform to ensure accurate, competitive information, fair prices and flawless execution for CFD trading.

  • Streaming tradeable prices through our platforms allow you to act in real time on the very latest price movements.
  • Our prices track the underlying instruments effectively so you know that your trade will result in your expected profit (or loss).
  • No matter if the market is volatile, we will continue to offer fair prices and to make our best to provide the market access you need to open and close positions whenever you want to.

These are the products we offer though our Tradeview Forex platforms:

EQUITIES

Trade CFDs on thousands and thousands of individual equities listed worldwide. Unlike traditional equity investing, you can choose to go long or short. The choice is yours.

STOCK INDICES

Choose CFDs on overall stock indices all over the world for a broader view. Some of the markets we trade in are: UK 100, Wall Street, US TECH 100, Japan 225 and the Germany 30.

CURRENCIES

Currency trading at Tradeview Forex CFDs offers access to about 24 currency pairs.

PRECIOUS METALS AND COMMODITIES

CFDs also offer a straight-to-the-point and affordable way to trade the price movements of commodities that are popular (such as gold, silver and oil). Also, we offer CFDs on the principal commodities markets including coffee, sugar, pork bellies and wheat.

CFD Information

WHAT ARE CFDs?

A contract for difference (also known as CFD) is a contract between two parties: buyer and seller, specifying that the seller will pay to the buyer the difference between the current value of an asset and its value at contract time.

However, if the difference happens to be a negative one, then the buyer pays to the seller instead. For example, when applied to equities, this kind of contract is an equity derivative that allows investors to speculate on share price movements, without the need for ownership of the underlying shares.

CFDs give investors the chance to take long or short positions. CFDs have no fixed expiry date or contract size, unlike futures contracts,. Trades are conducted on a leveraged basis with margins typically ranging from 1% to 20% of the notional value for CFDs on leading equities.

WHY TRADING CFDs?

LEVERAGE YOUR INVESTMENT POTENTIAL

CFDs are traded on leverage, so it's possible to increase your exposure to an underlying asset from the same initial investment. To open a CFD trade, you need to deposit only a part of the total trade value, usually an amont around 1-20 percent, allowing you to take a larger position that would be harder to take if you had to fund it in full.

Leverage is great news if the market moves in the direction that you expect, but it becomes a risk if the market moves against you.

TRADE FINANCIAL MARKETS AROUND THE WORLD

CFD trading gives you access to a broad range of markets that usually are not available to retail investors. It is as easy to trade on the price movement of commodities such as oil or gold as it is to trade an individual equity. CFDs also let you to speculate on whole indices or sectors from one single trade.

PROFIT WHEN MARKETS FALL AS WELL AS RISE

By 'going short' (that is, selling), you can profit from a falling market as easily as you could profit from a rising market by buying it. If you think that a company or a market will have a loss of value in the short term,then you can use CFDs to sell it now, with the expectation that you can buy it later. However, if the price of your trade moves against you, your position will result in a loss.

HEDGE OTHER INVESTMENTS

Since CFDs offer the possibility of going easily as short as long, they can be used to provide a certain insurance against price falls in a portfolio. For example, if you have a long-term portfolio that you wish to keep, but you feel that there is a short-term risk to the value of your investments, you could use CFDs to damage-control a short term loss by 'hedging' your position. If the value of your portfolio falls, then the profit in the CFDs should offset these losses.

Currency Exchanges

Currency Exchanges Exchange Margin Transaction fee per unit
EUR/USD FX 0,5 - 1% $0.00
USD/JPY FX 0,5 - 1% $0.00
GBP/USD FX 0,5 - 1% $0.00
USD/CHF FX 0,5 - 1% $0.00
USD/CAD FX 0,5 - 1% $0.00
AUD/USD FX 0,5 - 1% $0.00
EUR/GBP FX 0,5 - 1% $0.00
EUR/JPY FX 0,5 - 1% $0.00
GBP/JPY FX 0,5 - 1% $0.00
CHF/JPY FX 0,5 - 1% $0.00
EUR/CHF FX 0,5 - 1% $0.00
NZD/USD FX 0,5 - 1% $0.00
GBP/CHF FX 0,5 - 1% $0.00
AUD/JPY FX 0,5 - 1% $0.00
EUR/AUD FX 0,5 - 1% $0.00
EUR/CAD FX 0,5 - 1% $0.00
NZD/JPY FX 0,5 - 1% $0.00
CAD/JPY FX 0,5 - 1% $0.00
GBP/CAD FX 0,5 - 1% $0.00
GBP/NZD FX 0,5 - 1% $0.00
GBP/AUD FX 0,5 - 1% $0.00
AUD/NZD FX 0,5 - 1% $0.00
AUD/CHF FX 0,5 - 1% $0.00
USD/MXN FX 0,5 - 1% $0.00

Futures

Futures Symbol Exchange Margin Transaction fee per unit
USD Index USD Index 1% $0.00
Crude Oil GCL CME 5% $0.07 expires 10/20/09
Natural Gas GNG CME 5% $0.03 expires 10/28/09
10 Yr US T-Note ZN eCBOT 1.50% $0.05
30 Yr US T-Bonds ZB eCBOT 1.50% $0.05
CAC 40 FCE Euronext 5% $1.50 expires 12/18/09
DAX FDAX EUREX 5% $1.25
Dow Jones 30 DJI INDEXDJX 5% $3.00 expires 12/18/09
DJIA ZDJ eCBOT 5% $3.00
FTSE 100 FTSE LIFFE 5% $1.50
NASDAQ ZND CME 5% $0.75 expires 12/18/09
Nikkei 225 NKD CME 5% $3.00
S&P 500 ZSP CME 5% $0.30 expires 12/18/09
Copper GHG CME 5% $0.02 expires 10/28/09
Gold GGC CME 5% $0.25
Silver GSI CME 5% $0.03
Soybeans ZS eCBOT 5% $0.03 expires 11/13/09

Equities

Equities Symbol Exchange Margin Transaction fee per unit
Altria Group MO NYSE 20% $0.1
American Express AXP NYSE 40% $0.1
Amgen AMGN NASDAQ 20% $0.18
Apple Computer AAPL NASDAQ 20% $0.3
Applied materials AMAT NASDAQ 20% $0.1
Boeing Co BA NYSE 20% $0.1
Bristol Myers Squibb BMY NYSE 20% $0.1
Caterpillar CAT NYSE 20% $0.11
Cisco Systems CSCO NASDAQ 20% $0.1
Dell Computer DELL NASDAQ 30% $0.1
Delta Airlines DAL NYSE 40% $0.1
Ebay EBAY NASDAQ 20% $0.1
EMC Corp EMC NYSE 30% $0.1
Exxon Mobil XOM NYSE 20% $0.23
General Electric GE NYSE 30% $0.1
Goldman Sachs GS NYSE 30% $0.2
Google GOOG NASDAQ 30% $0.81
Hewlett Packard HPQ NYSE 20% $0.1
Home Depot HD NYSE 30% $0.1
IBM IBM NYSE 20% $0.23
Intel Corp INTC NASDAQ 20% $0.1
Johnson and Johnson JNJ NYSE 20% $0.17
JPMorgan Chase JPM NYSE 40% $0.1
Microsoft MSFT NASDAQ 20% $0.1
Morgan Stanley MS NYSE 60% $0.1
National Semiconductor NSM NYSE 20% $0.1
Newmont Mining NEM NYSE 30% $0.1
Oracle Corp ORCL NASDAQ 20% $0.1
Pfizer PFE NYSE 20% $0.1
Qualcomm QCOM NASDAQ 30% $0.1
Research in Motion RIMM NASDAQ 20% $0.19
Symantic SYMC NASDAQ 40% $0.1
Target TGT NYSE 20% $0.1
Texas Instruments TXN NYSE 20% $0.1
United Technologies UTX NYSE 20% $0.14
Verizon Communications VZ NYSE 20% $0.1
Yahoo YHOO NASDAQ 20% $0.1
Nippon Telegraph and Telephone NTT NYSE 15% $0.1
Nissan Motor NSANY NASDAQ 15% $0.1
NTT DoComo DCM NYSE 15% $0.1
Sony SNE NYSE 15% $0.1
Toyota Motor TM NYSE 15% $0.2
Baidu BIDU NASDAQ 15% $0.1
China Unicom CHU NYSE 25% $0.1
Shanda Interactive Entertainment SNDA NASDAQ 10% $0.1
Cemex S.A.B. de C.V. CX NYSE 10% $0.1
Petroleo Brasileiro PBR NYSE 20% $0.1
United States STF Corp New X NYSE 10% $0.1
Alfa-A ALFAA Mexican Stock Exchange 20% $0.1
America Movil AMXL Mexican Stock Exchange 20% $0.1
Cemex CPO CEMEXCPO Mexican Stock Exchange 20% $0.1
Consorcio-ARA ARA Mexican Stock Exchange 50% $0.1
Empresas ICA Mexican Stock Exchange 50% $0.1
Gmexico-B GMEXICOB Mexican Stock Exchange 20% $0.1
Grupo Fin Banorte GFNORTEO Mexican Stock Exchange 60% $0.1
Grupo Televisa TLEVISACPO Mexican Stock Exchange 20% $0.1
Mexichem MEXCHEM Mexican Stock Exchange 20% $0.1
Urbi Desarroll URBI Mexican Stock Exchange 60% $0.1
Wal-Mart WALMEXV Mexican Stock Exchange 20% $0.1
Telmex TELMEXL Mexican Stock Exchange 20% $0.1

ETFs

ETFs Symbol Exchange Margin Transaction fee per unit
Diamonds DIA AMEX 20% $0.23
PowerShares DB Agriculture DBA AMEX 10% $0.1
PowerShares DB Commodity Idx Trking DBC AMEX 20% $0.1
PowerShares QQQ QQQQ AMEX 10% $0.1
PowerShares Water Resources PHO AMEX 20% $0.1
PowerShares Wilder Clean Energy PBW AMEX 30% $0.1
SPDR SPY AMEX 20% $0.24
SPDR Energy XLE AMEX 20% $0.13
SPDR Financial XLF AMEX 20% $0.1
SPDR Industrial XLI AMEX 20% $0.1
SPDR S&P China GXC AMEX 30% $0.13
SPDR S&P Emerging Middle East&Africa GAF AMEX 30% $0.12
SPDR Technology XLK AMEX 20% $0.1
SPDR S&P Metals&Mining XME AMEX 50% $0.1
SPDR HealthCare XLV AMEX 20% $0.1
SPDR Gold Shares GLD AMEX 20% $0.27
SPDR S&P Homebuilders XHB AMEX 60% $0.1
SPDR S&P Oil & Gas Exploration XOP AMEX 20% $0.1
SPDR Materials Select Sector XLB AMEX 20% $0.1
SPDR Consumer Discretionary XLY AMEX 20% $0.1
SPDR Utilities Select Sector XLU AMEX 20% $0.1
BLDRS Emerging Markets 50 ADR Index ADRE AMEX 40% $0.1
HLDRS Biotech BBH AMEX 20% $0.1
HLDRS Semiconductor SMH AMEX 20% $0.1
HLDRS Oil Service OIH AMEX 20% $0.23
DJ Wilshire REIT ETF RWR AMEX 20% $0.1
KBE Bank Index KBE AMEX 30% $0.1
KBW Regional Banking KRE AMEX 70% $0.1
United States Oil USO AMEX 30% $0.12
United States Natural Gas UNG AMEX 20% $0.1
Ultra QQQ ProShares QLD AMEX 30% $0.1
Ultra S&P500 ProShares SSO AMEX 30% $0.1
UltraShort Dow30 ProShares DXD AMEX 50% $0.19
UltraShort Financials ProShares SKF AMEX 50% $0.49
UltraShort FTSE/Xinhua China 25 ProShares FXP AMEX 50% $0.16
UltraShort Russell 2000 ProShares TWM AMEX 30% $0.22
UltraShort S&P500 ProShares SDS AMEX 30% $0.29
UltraShort Real Estate ProShares SRS AMEX 20% $0.18
UltraShort Oil & Gas ProShares DIG AMEX 20% $0.1
UltraShort 20yr Treasury ProShares TBT AMEX 20% $0.13
UltraShort MSCI Emerging Mkts ProShares EEV AMEX 20% $0.13
UltraShort DJ-AIG Crude Oil ProShares SCO AMEX 20% $0.1
UltraShort Basic Materials ProShares SMN AMEX 20% $0.1
Ultra Basic Materials ProShares UYM AMEX 20% $0.1
Vanguard Europe Pacific ETF VEA AMEX 30% $0.1
Vanguard REIT ETF VNQ AMEX 30% $0.1
Vanguard Mid Cap ETF VO AMEX 20% $0.12
Vanguard Value ETF VTV AMEX 20% $0.11
Vanguard FTSE All World ex-US ETF VEU AMEX 20% $0.1
Vanguard Emerging Markets ETF VWO AMEX 30% $0.13
Vanguard European ETF VGK AMEX 60% $0.1
iShares S&P100 Index OEF AMEX 20% $0.12
iShares Nasdaq Biotechnology IBB AMEX 20% $0.19
iShares Dow Jones US Basic Materials IYM AMEX 40% $0.12
iShares Dow Jones US Energy IYE AMEX 40% $0.1
iShares Dow Jones US Financial Sector IYF AMEX 40% $0.12
iShares Dow Jones US Real Estate IYR AMEX 50% $0.1
iShares Lehman TIPS Bond TIP AMEX 20% $0.29
iShares MSCI Germany Index EWG AMEX 30% $0.1
iShares MSCI EMU Index EZU AMEX 40% $0.1
iShares MSCI Malaysai Index EWM AMEX 40% $0.1
iShares MSCI Mexico Index EWW AMEX 40% $0.1
iShares Russell 2000 Growth Index IWO AMEX 20% $0.13
iShares MSCI United Kingdom Index EWG AMEX 20% $0.1
iShares Silver trust SLV AMEX 20% $0.1
iShares S&P500 Growth Index IVW AMEX 40% $0.13
iShares S&P500 Index IVV AMEX 20% $0.25
iShares MSCI Canada Index EWC AMEX 20% $0.1
iShares MSCI Japan Index EWJ AMEX 20% $0.1
iShares MSCI Brazil Index EWZ AMEX 20% $0.11
iShares Barclays 20+yr Treasury Bond TLT AMEX 20% $0.31
iShares FTSE/Xinhua China 25 Index FXI AMEX 20% $0.1
iShares MSCI Tawain Index EWT AMEX 20% $0.1
iShares MSCI South Korea Index EWY AMEX 20% $0.1
iShares MSCI Hong Kong Index EWH AMEX 20% $0.1
iShares MSCI Australia Index EWA AMEX 20% $0.1
iShares MSCI Singapore Index EWS AMEX 20% $0.1
iShares s&P Latin America 40 Index ILF AMEX 20% $0.1
Market Vectors Coal ETF KOL AMEX 40% $0.1
Market Vectors Russia RSX AMEX 40% $0.1

CFD ETF Trading Examples

  • With CFD trading you buy a CFD based on a certain amount of the underlying asset. In this case, we will examine how to trade ETF.
  • The following worked examples show how you can use CFDs to trade a number of different markets.
  • These examples show trades that result in both profits and losses.
  • CFD trading example (ETF) - Buying SPDR (SPY).
  • You believe that the shares of SPY will rise, so you decide to buy a CFD based on 2000 shares.
  • Tradeview Forex quotes you a spread of $84.68/$84.70 for SPDR (SPY).
OPENNING TRADE
Price of SPY 84.70
Number of underlying shares 2,000
Value of total position (US$) 169,400
Transaction Fee @ $.24 per share 480
Margin requirement @ 20% ($) 33,880

After 2 days the market has risen and you decide to close your position.

CLOSING TRADE (2 days later)
Price of SPY 86.75
Number of underlying shares 2,000
Value of total position (US$) 173,500

PROFIT (loss) ON TRADE
Closing value ($) 173,500
Opening value ($) 169,400
Gain on position ($) 4,100
Total transaction Fee ($) (480)
Overall profit on trade ($) 3,620

ETF Basics and Facts

Exchange traded funds offer individual investors:

  • Advantages of stocks and mutual funds combined
  • Lower fees** (ordinary brokerage commissions apply)
  • Lower capital gains taxes**

Recently, these exceptional features and benefits have helped exchange traded funds explode in popularity and emerge as one of the most flexible, multi-purpose investment vehicles available.

Ever since the American Stock Exchange championed and pioneered the concept of a tradable basket of stocks with the creation of the Standard & Poor's Depositary Receipt (SPDR) in 1993, exchange traded funds have evolved into a completely new investment category.

Today, the number of ETFs listed and traded at the Amex has grown to more than 180 and continues to grow—not only in the number of products and their variety—but also in terms of assets and market value.

What are exchange traded funds?

Exchange traded funds (ETFs) are index funds or trusts* that are listed on an exchange and can be traded intraday. Investors can buy or sell shares in the collective performance of an entire portfolio as a single security. Exchange traded funds add the flexibility, ease, and liquidity of stock trading to the benefits of traditional index fund investing.

The American Stock Exchange lists ETFs on more than 180 broad stock market, stock industry sector, international stock, U.S. Treasury, and corporate bond indexes and commodities, providing a vast selection of investment opportunities. ETFs provide a simple and effective way to invest in markets all over the world. Investors can set long-term investments in the market performance of the top companies in the top industries within the United States or abroad, or customize asset allocations using diversified investments in stocks in particular industries or countries or in U.S. bonds or commodities.

The advantages of ETFs:

Tax efficiency**
ETFs, like index funds, offer greater tax benefits because they create fewer capital gains due to low turnover of the securities that comprise the portfolio. Generally, an ETF only sells securities to reflect changes in its underlying index. Exchange trading of ETFs further enhances their tax efficiency. Investors who want to liquidate shares in an ETF simply sell them to other investors through exchange trading.

Because of this particular structure, ETFs are not required to sell securities to meet investor cash redemptions, potentially generating capital gains tax liability for remaining investors. Keep in mind that the sale of an ETF will generate capital gains/losses for the investor liquidating shares.

Lower costs**
Expenses can have a masive impact on returns for investors. ETFs usually have a notoriously lower annual expense ratio than other investment products. ETFs are less likely to experience high management fees because they are index-based, not "actively" managed.

Since they trade on an exchange, ETFs are insulated from the costs of having to buy and sell securities to accommodate shareholder purchases and redemptions. An investor selling ETF shares may realize capital gains or losses, as with common stocks. Purchases or sales of exchange traded funds are subject to brokerage commissions.

Transparency
ETFs are usually designed to match the performance of their underlying index or commodity.

Buying and selling flexibility
Because they are exchange traded, ETFs can be:

  • Bought and sold at intraday market prices
  • Purchased on margin
  • Sold short
  • Traded using stop orders and limit orders, which help investors to specify the price points at which they are willing to trade

All day tracking and trading
ETFs are priced and traded throughout the day, and are not restricted to once-a-day trading at the end of the day.

Due to the pricing of ETFs is continuous during trading hours, investors will always be able to obtain updated share prices from their broker or financial adviser.

Diversification*
Since each ETF is comprised of a basket of securities, it inherently provides diversification across an entire index. Also, the expanding possibilities of ETFs available at the American Stock Exchange offer exposure to a diverse variety of markets, including:

  • Broad-based equity indexes (i.e.: as total market, large-cap growth, and small-cap value)
  • Broad-based international and country-specific equity indexes (i.e.: Europe, EAFE, and Japan)
  • Industry sector-specific equity indexes (i.e.: healthcare, energy, and real estate)
  • U.S. bond indexes (i.e.: long-term Treasury bonds and corporate bonds)
  • Commodities (i.e.: gold, silver, and oil)

Dividend opportunities
Dividends paid by companies and interest paid on bonds held in an ETF are distributed to ETF holders, less expenses, on a pro rata basis.

However, not all companies will pay dividends. Based on past performance, few distributions can be expected from certain ETFs. There may also be opportunities for reinvestment of distributions.

Wide array of investment strategies
Investors can benefit from the convenience and flexibility of ETFs to pursue a vast array of investment strategies.

  • Core investment
    Investors can use ETFs as a core investment for their portfolio. The purchase of shares in a single ETF can provide broad market exposure for long-term holding that is simple to establish, easy to track, inexpensive, and tax efficient.road-based equity indexes (i.e.: as total market, large-cap growth, and small-cap value)
  • Portfolio diversification
    ETFs cover virtually every segment of the equity market and several segments of the U.S. bond market and commodities, providing an easy and convenient way to adjust the investment mix of a core portfolio.
  • Hedging
    Exchange traded funds can be purchased on margin and sold short, which has opened up risk management strategies for individual investors that were available just for large institutions. For example, ETFs can be sold short to hedge a core stock portfolio or interest rate fluctuations. This allows investors to keep their portfolio intact while protecting them from market losses.

    In a declining stock market or rising interest rate environment, profits from a short position can offset some of the losses in a portfolio. (Investors are required to make arrangements to borrow securities before selling short.) Listed options, available on some ETFs, also offer chances for additional hedging or to increase income. Investors should contact their broker regarding initial and maintenance margin requirements.
  • Cash management
    ETFs have often been used to "equitize" cash, providing a way for investors to put cash to work in the market or maintain allocation targets while determining where to invest for the longer term.
  • Rebalancing
    Investors can adjust ETF positions whenever they need to throughout the trading day, without redemption fees or short-term restrictions. Usual brokerage commissions will apply.
  • Tax loss strategy
    An investor can sell a security that is underperforming and claim a tax loss but retain exposure to its sector by investing in an ETF. It is recommended to consult a tax advisor about a tax loss strategy.

Risks and other considerations

ETF shareholders are subject to risks similar to those of holders of other diversified portfolios. A basic consideration is that the general level of securities or commodities may decline, affecting the value of an exchange traded fund because ETFs represent interest in securities or commodities.

When interest rates rise, bond prices will probably decline, affecting adversely the value of fixed income ETFs. Moreover, the overall depth and liquidity of the secondary market may also fluctuate.

An exchange traded sector fund may also be adversely affected by the performance of that specific sector or group of industries on which it is based.

International investments may involve risk of capital loss from unfavorable fluctuations in currency values, differences in generally accepted accounting principles, or economic, political instability in other nations.

Although exchange traded funds are designed to provide investment results that generally correspond to the price and yield performance of their respective underlying indexes or commodities, the trusts may not be able to exactly replicate that performance because of trust expenses and other factors.

* iShares COMEX Gold Trust, iShares Silver Trust, and United States Oil Fund are not index funds or diversified baskets of securities. ProShares seek performance that corresponds to a multiple, inverse, or inverse multiple of an index.

** ProShares Trust portfolios will experience high levels of portfolio turnover, which will increase transaction expenses and may be more likely to generate taxable short-term capital gains than other ETFs.

CFD Equities Trading Examples

  • As with traditional share dealing, CFD prices are quoted as a Bid (the price you can sell at) and an Offer (the price you can buy at). With CFD trading you buy a CFD based on a certain amount of the underlying asset.
  • The following worked examples show how you can use CFDs to trade a number of different markets.
  • These examples show trades that result in both profits and losses.
  • CFD trading example (Equities) - Buying Yahoo (YHOO)
  • You believe that the shares of Yahoo will rise, so you decide to buy a CFD based on 3000 shares.
  • Tradeview Forex quotes you a spread of $13.47/$13.49 for Yahoo (YHOO).
OPENNING TRADE
Price of YHOO 13.49
Number of underlying shares 3,000
Value of total position (US$) 40,470
Transaction Fee @ $.10 per share 300
Margin requirement @ 20% ($) 8,094

After 2 days the market has risen and you decide to close your position.

CLOSING TRADE (2 days later)
Price of YHOO 14.01
Number of underlying shares 3,000
Value of total position (US$) 42,030

PROFIT (loss) ON TRADE
Closing value ($) 42,030
Opening value ($) 40,470
Gain on position ($) 1,560
Total transaction Fee ($) (300)
Overall profit on trade ($) 1,260

CFD Futures Trading Example

  • With CFD trading you buy a CFD based on a certain amount of the underlying asset. In this case, we will examine how to trade futures.
  • The following worked examples show how you can use CFDs to trade a number of different markets.
  • These examples show trades that result in both profits and losses.
  • CFD trading example (Index) - Selling the US TECH 100
  • You believe that the US TECH 100 will fall so you decide to sell a CFD based on 100 underlying futures contracts for that market.
  • Tradeview Forex quotes you a spread of $13.47/$13.49 for Yahoo (YHOO).
OPENNING TRADE
Price of US TECH 100 1280
Number of underlying shares 100
Value of total position (US$) 128,000
Transaction Fee $.75 per contract 75
Margin requirement @ 5% ($) 6400

After 2 days the market has risen and you decide to close your position.

CLOSING TRADE (2 days later)
Price of US TECH 100 1250
Number of underlying contracts 100
Value of total position (US$) ($) 125,000

PROFIT (loss) ON TRADE
Opening value ($) 128,000
Closing value ($) 125,000
Gain on position ($) 3,000
Total transaction Fee ($) (75)
Overall profit on trade ($) 2,925

Order Types

Orders are trading tools that help the trader to fully or partially open, close, or amend positions. They are useful for managing risk.

At Tradeview Forex, we have a range of orders to help you get into, and out of, positions at the price you want to.

Limit Orders

A Limit Order is an instruction to buy or sell a market when it reaches a price that surpasses the prevailing, at the time of placing the Order. It can be used to open a new position, where you anticipate a more favorable market price (either buy or sell). It can also be used to close an existing Open Position, when a market reaches a certain level.

For instance, if our quote for UK 100 Rolling Spread is 5873.8 / 5875.8

To open a new position:
If you thought the market was going to reach 5700.5 and then reverse and go higher, and you had no Open Position in the market, you would leave a new Limit Buy Order at 5700.5. If the price reaches 5700.5 or lower, then the Order is activated and you would have a new long (buy) position in the market.

To close a position:
If you were long (had a buy position) in the market and wished to take your profit when the market reached 5950.8, you would leave a Limit Sell Order at 5950.8, which would activate when the Sell price hit 5950.8 or higher. If activated, this Order would close your position and realize any profit (or loss if you opened your position above 5950.8.).

Stop Orders

A Stop Order is an instruction to buy or sell a market at a price which is worse than that prevailing, at the time of placing the Order. It can be used to open a position if there is a chance that a market could move even higher once it moves above a particular level (when buying), or even lower if it moves lower than a particular level (when selling). Stop orders can also be used to close a position (a tool for managing risk).

E.g. If our quote for Australian 200 CFD is 5100 / 5106

To open a new position:
If you felt that the market traded up to 5150 and it would continue even higher, then you would leave a new Stop Order to Buy at 5150. If the Buy price hit 5150 or higher, the Order would execute and open a long position.

Stop Loss Orders

A Stop loss order is an instruction to buy or sell a market at a price which is lower than the opening price of an open position (or lower than the prevailing when applying the stop loss to an existing open position). It can be used to help protect against losses.

E.g. If our quote for Australian 200 CFD is 5100 / 5106

To close a position using a stop loss:
If you were long in the market and wished your position to be closed if the market went beneath 5000, then you would leave a Stop Loss Order linked to that position to Sell at 5000. If the price fell to 5000 (or lower) then the Stop would be executed and close that position.

Trading Hours

Name Market Trading Hours
US EQUITIES XNYS 14:30 - 21:00 (GMT)
UK EQUITIES XLON 08:00 - 16:35 (GMT)
EU EQUITIES XETR 08:00 - 16:35 (GMT)
RUSSIAN EQUITIES XNYS 14:30 - 21:00 (GMT)
LATIN AMERICAN EQUITIES XNYS 14:30 - 21:00 (GMT)
BRAZILIAN EQUITIES XNYS 14:30 - 21:00 (GMT)
CHINESE EQUITIES XNAS 14:30 - 21:00 (GMT)
JAPANESE EQUITIES XNYS 14:30 - 21:00 (GMT)
AUSTRALIAN EQUITIES XASX 23:00 - 05:12
US ETF's XASE 14:30 - 21:00 (GMT)
EU ETF's XPAR 08:00 - 16:35 (GMT)
FUTURES CBOT, CME, NYMEX 24h

Overnight Positions

If you carry a Share CFD position overnight, it will cause a financing cost or benefit. Finance costs/benefits will be on 100% of the value of your exposure. If you are long, you may have to pay interest to Tradeview Forex; if you are short, you may receive interest.

Financing for non-currency positions

There is a daily financing charge or credit related to any CFD position which is held overnight. This is calculated using the following formula:

F = V x i / b, where:
  • F = daily financing charge
  • V = value of equivalent holding of the underlying financial instrument
  • i = applicable financing rate
  • b = 365 days

Your account will be debited a financing amount for each long CFD position that you hold, and will be credited a financing amount for each short CFD position that you hold.

The financing rates used are +/- 2%

If a position is held on a Friday or prior to a non-business day in the relevant market, financing will be applied on the number of days until the next business day.

For instance, for a position held at the close of business on a Friday, financing will be applied for 3 days if the next business day is a Monday.

Financing for currency positions

When it comes to currency positions, the daily financing is calculated by using the one day interest rate differentials for the two currencies concerned. You receive the interest on the currency you have bought and pay interest on the currency you have sold, although the financing posting/adjustment will be made in one currency.

For a position held on a Friday or prior to a non-business day in the relevant market, financing will be applied on the number of days until the next business day.

For a position held at the close of business on a Friday, financing will be applied for 3 days, assuming the next business day is a Monday.

Notice Regarding CFDs on Futures:

When trading CFD's on futures, your position will automatically be closed on the basis of the applicable time and date of the contract expiration listed. Positions will not be rolled over or extended beyond this deadline.

By entering into any CFD transaction with Tradeview Forex, you agree that Tradeview Forex is not responsible for any losses incurred as a result of the automatic closure of these positions at the time and on the date disclosed to you on each CFD.

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