CFD (Contract For Difference)
An arrangement made in a futures contract whereby differences in settlement are made through cash payments, rather than the delivery of physical goods or securities.
FDFX launches WTI CFD's Salient Features:
Monday to Saturday: - 12.00 pm to 11.15 am (New Zealand time)
The Roll over:
Futures contracts are Exchange traded hence they have specific expiry dates:
The date by which an executed security trade must be settled. That is, the date by which a buyer must pay for the securities delivered by the seller.
Please note the expiry dates (settlements Dates) of the Futures contract:
Futures Contract Last Trading Day
January 2009 19.12.08
February 2009 20.01.09
March 2009 20.02.09
April 2009 20.03.09
May 2009 21.04.09
June 2009 19.05.09
July 2009 22.06.09
August 2009 21.07.09
September 2009 20.08.09
October 2009 22.09.09
November 2009 20.10.09
December 2009 20.11.09
Rollover of the Contract is done at the Price it was first opened and there is no Roll over gain or loss to a customer.
Example
Client open position is: - Long 1 contract WTI _ CFD
Price on close of day= 36.60
(Before the front month changes) Profit client makes on this is 37.28
Next contract Price is $680
Difference of Next contract price to current month: 44.19
Price Feed is changed to New Contract +6.91
Account Position now shows a profit of $ 6,910
The Account will be debited by $ 6,910
The Net effect is ZERO
FDFX launches WTI CFD's Salient Features:
- 5 cent spreads
- 1 % margin
- 1pt = $10
Monday to Saturday: - 12.00 pm to 11.15 am (New Zealand time)
The Roll over:
Futures contracts are Exchange traded hence they have specific expiry dates:
- The price will be switched from the front month price feed into the next month price feed at the close of business.
- The price will be switched one or two days before the official market switches its front month feed (before market expires).
The date by which an executed security trade must be settled. That is, the date by which a buyer must pay for the securities delivered by the seller.
Please note the expiry dates (settlements Dates) of the Futures contract:
Futures Contract Last Trading Day
January 2009 19.12.08
February 2009 20.01.09
March 2009 20.02.09
April 2009 20.03.09
May 2009 21.04.09
June 2009 19.05.09
July 2009 22.06.09
August 2009 21.07.09
September 2009 20.08.09
October 2009 22.09.09
November 2009 20.10.09
December 2009 20.11.09
Rollover of the Contract is done at the Price it was first opened and there is no Roll over gain or loss to a customer.
Example
Client open position is: - Long 1 contract WTI _ CFD
Price on close of day= 36.60
(Before the front month changes) Profit client makes on this is 37.28
Next contract Price is $680
Difference of Next contract price to current month: 44.19
Price Feed is changed to New Contract +6.91
Account Position now shows a profit of $ 6,910
The Account will be debited by $ 6,910
The Net effect is ZERO
