CFD

Discover the potential of International CFDs Discover the potential of International CFDs

Contracts For Difference (CFD)

Online CFD trading offers todays investors one of the most flexible tools to take advantage of market movements without tying up funds by trading the underlying instrument. CFDs can be bought and sold, which enables you to seek profit from falling as well as rising market prices unlike traditional stock trading. CFDs offer the opportunity to build a diverse, multi-product portfolio from one account with Topgrowth.

Why Trade CFD?

Online CFD trading is a highly adaptable way to trade both bull and bear markets, which allows you to short or sell short. If you think a particular stock is set to drop, you can, in effect, sell it, and turn a profit if the market moves the way you expect. A CFD (Contract for Difference) is an agreement to exchange the difference in value of the underlying instrument (a share, e.g.) between the time at which the order is opened and the time at which it is closed. Geared products like CFDs can help you make the most effective use of your investment capital, but it is important to appreciate that the amount you could lose relative to your initial investment is greater for geared products than for non-geared products. CFDs are margin traded products. Thus, you only deposit a fraction of the overall value to trade the full contract value of the product allowing you to make a much larger potential investment. Just like physical shares your profit or loss is determined by the difference between the price you buy at and the price you sell at. Margin levels required will vary between CFD products. Example A client wants to purchase 10,000 worth of HSBC shares, the margin requirement would be only 1,000. If the HSBC share value increases to 10,500, a 500 profit on the deal would equate to just a 5% return if you traded the shares outright, compared to a return of 50% on a CFD. By using margin investors can increase the effectiveness of their investments and achieve returns on investment that are otherwise unattainable. Topgrowth offer CFDs on a comprehensive range of underlying products, including global indices, futures, commodities and currencies.

CFD Product List

Trading CFDs with Topgrowth means you can buy and sell North American, British, European and Chinese and Japanese shares from the same platform. All CFD products that you can trade with us are listed in the tables below. Additionally, we have included information about the reference indicator for each product, the relevant currency and the margin requirements to trade each contract. CFDs on Indices

Product Names Tick Size Tick Value Necessary Margin Per Lot (Day & Overnight Trade)
Dow Jones Index 1 index point Rp 50.000 Rp 15.000.000
S&P 500 Index 0.25 index point Rp 125.000 Rp 15.000.000
NASDAQ Index 0.25 index point Rp 50.000 Rp 15.000.000
FTSE Index 0.50 index point Rp 75.000 Rp 15.000.000
Dax Index 0.50 index point Rp 150.000 Rp 20.000.000

CFDs on Enery Products

Product Names Tick size Tick Value Necessary Margin Per Lot (Day & Overnight Trade)
Crude Oil US$ 0.01 Rp 100.000 Rp 20.000.000

CFDs on Bullion Products/Precious Metal

Product Names Tick size Tick Value Necessary Margin Per Lot (Day & Overnight Trade)
Spot Silver US$ 0.01 Rp 500.000 Rp 20.000.000

CFD Trading Strategies

CFDs are tools for trading almost any financial product on a leveraged basis. CFD products are offered on commodity futures (metals and energy products) along with indices listed on various international financial markets. One big advantage they offer is that you do not have to put up 100% of the nominal value of the product. However by purchasing a CFD you do not actually own the underlying product, but you are entitled to 100% of either the profits or losses of the full value of the contract. Regardless of your investment style, CFD products are valuable tools both to grow and protect your overall portfolio. CFDs do this through speculation on short-term movements in the price of a financial product, or by allowing clients to hedge overall portfolio positions to minimize negative market movements. Also clients benefit from the use of additional leverage which depending upon the direction of the market, may significantly raise profitability and return on equity. Hedge positions can be a good long-term buy in a portfolio against short-term declines in value. Investors may not want to liquidate positions that overall provide growth, dividends and/or share appreciation. This is understandable given commission charges and taxation involved with owning shares. However, if the market is set to decline, it is not a good decision to hedge long-term positions.