| Home > Trading Products > CFD's |
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| 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. |
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| COFX launches WTI CFD's Salient Features :- |
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| 1. 5 cent spreads |
| 2. 1 % margin |
| 3. 1pt = $ 10. |
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Trading Hours :
Monday to Saturday :- 12.00 pm to 11.15 am |
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| The Roll over :- |
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| Futures contracts are Exchange traded hence they have specific expiry dates:- |
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| 1. The price will be switched from the front month price feed into the next month price feed at the close of business. |
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| 2. The price will be switched one or two days before the official market switches its front month feed (before market expires). |
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| Settlements |
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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:- |
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| Last trading Day |
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Jan 10, 2011
Feb 21, 2011
March 17, 2011 |
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| 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. |
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| Example |
| Client open position is :- Long 1 contract WTI _ CFD |
36.60 |
Price on close of day =
(Before the front month changes) |
37.28 |
| Profit client makes on this is |
$680 |
| Next contract Price is |
44.19 |
| Difference of Next contract price to current month: |
+6.91 |
| Price Feed is changed to New Contract |
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| Account Position now shows a profit of |
$ 6,910 |
| The Account will be debited by |
$ 6,910 |
| The Net effect is ZERO |
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