Trading CFDs with AxiTrader

  • What is a CFD?

    CFD stands for Contract for Difference. It is effectively a contractbetween a buyer and seller (i.e. the trader and the broker), agreeing to pay the differencebetween the value of an asset at the time the trade was entered into and the value when the trade ends.

    CFDs are most commonly used as a way of trading assets like gold, oil or other commodities without having to physically purchase that asset. Instead, you simply trade on that asset’s real time price movements.

    For example, if you were trading gold as a CFD you would not be buying any real bars of gold. Instead, you would just be trading on the price movements of the gold market.

    And because you are only trading on the price movements, CFD trading allows you to profit on upward or downward price movements, depending on which way you speculate. This is different to investing in physical gold where you would only make a profit by selling the gold for more than you bought it for.

  • Which Indices do you offer?

    A current and complete list of Indices can be found in the product schedule on our website. As a quick reference, some of the most popular Indices are listed in the following table:

    Index

    Underlying
    Financial
    Instrument

    Symbol

    France 40 Index

    CAC 40

    CAC40.FS

    German 30

    DAX

    DAX30.FS

    UK FTSE 100

    FTSE100

    FT100.FS

    US S&P 500

    S&P 500 E-mini

    S&P.FS

    DOW 30

    Dow E-mini

    DJ30.FS

    ASX S&P 200

    ASX SPI 200

    SPI200.FS

    JAPAN 225

    Nikkei 225

    JP225.FS

    Hang Seng

    Hang Seng

    HSI.FS

    Nasdaq 100

    Nasdaq 100 E-mini

    NAS100.FS

    China A50

    FTSE China A50

    CHINA50.FS

    Euro Stoxx 50

    Euro Stoxx 50

    EUSTX50.FS

    Oil

    West Texas Intermediate

    WTI.FS

    Brent Crude

    Brent Crude Oil

    BRENT.FS

    Cocoa

    Cocoa

    COCOA.FS

    Coffee

    Coffee

    COFFEE.FS

    Natural Gas

    Natural Gas

    NATGAS.FS

    Soybean

    Soybean

    SOYBEAN.FS

  • Are your Indices a Future or Spot Price?

    All AxiTrader Index contracts are based on a relevant Futures exchange price, and each Futures contract has an expiry date. If your trade remains open on the date the contract expires, the trade will be rolled over and an adjustment will be made to reflect the difference in contract pricing.

    For reference, the Spot Price is the current market price at which an asset is bought or sold for immediate payment and delivery. With Futures, the price reflects the expected value at which an asset can be bought or sold for delivery in the future.

  • Where can I find the trading hours for an Index CFD?

    For a full list of trading hours of Indices, including opening times, closing times and scheduled breaks in MT4 pricing, please refer to the Product Schedule.

  • What are the margins and tick values on Indices?

    The margin requirement for our Equity Indices is 1%. Tick sizes are variable, as outlined in the below table:

     

    Symbol Tick Value Currency
    CAC40.FS 0.5 5 EUR
    DAX30.FS 0.5 5 EUR
    FT100.FS 0.5 5 GBP
    S&P.FS 0.25 12.5 USD
    DJ30.FS 1 5 USD
    SPI200.FS 1 25 AUD
    NK225.FS 5 500 YEN
    HSI.FS 1 50 HKD
    NAS100.FS 0.25 5 USD
    CHINA50.FS 0.5 5 USD
    EUSTX50.FS 1 10 EUR

  • What is a CFD contract rollover?

    All AxiTrader Index contracts are based on a relevant Futures exchange price. Futures contracts have an expiry date that can be several months ahead and those forward prices can be higher or lower than the cash price, depending on market conditions.

    In order to avoid the risks of final day volatility, AxiTrader rolls over contracts one trading day prior to the exchange expiry.

    For example, when the Australian SPI contract expires in March, the price rolls over to the next quarterly price (June). Because of this, the price displayed on the MT4 platform is likely to increase or decrease, dependent on the value of the June contract relative to the March contract. This does not represent an actual price increase or decrease, simply a movement to a new reference point. As such, traders will incur no profit or loss when rolling over to a new contract except for the spread. 

    In order to ensure clients are not adversely affected, AxiTrader will simply make any necessary cash adjustments. You can check CFD Contract Rollover Dates here.

  • Is there a schedule of upcoming contract rollovers?
  • How do CFD Rollovers work?

    Index rollover example

    In order to ensure rollovers do not affect clients, a cash adjustment needs to be made. This is explained in the following examples:

    Let’s say the SPI for March closes at 5050/5051 and SPI June opens at 5000/5001.

     

    Example 1: You buy 10 contracts

    If your position is a Buy, it closes on the old Bid price of 5050 and reopens on the new Ask price of 5001. Because you are in a Buy and the new market price has decreased, your open trade P&L has made a loss. As a result, you will receive a positive adjustment amount in your swap column equal to the difference of the old Bid and the new Ask.

    You will receive (5050-5001)*10 contracts = $490 AUD

     

    Example 2: You sell 10 contracts

    If your position is a Sell, it closes on the old Ask price of 5051 and reopens on the new Bid price of 5000. Because you are in a Sell and the new market price has decreased, your open trade P&L has made a gain. As a result, you will receive a negative adjustment amount in your swap column equal to the difference of the old Ask and the new Bid.

    You will receive (5051-5000)*10 contracts = -$510 AUD

  • Will my position be closed when the Futures contract expires?

    No, your position will not be closed when the futures contract expires. It will remain open, the position will be rolled over and a cash adjustment will be applied to your account.

  • Are there any swap (rollover) charges for CFDs?

    Yes, there is a cost incurred when rolling Future CFD contracts. This cost is equal to the value of the Bid–Offer spread in the AxiTrader price.

    A rollover arises when the underlying instrument of the AxiTrader product is due for expiry and AxiTrader switches its price source to the next serial Futures contract. Because the next serial Futures contract will trade at a higher or lower price when compared to the expiring Futures contract, the change will result in a profit or loss on an AxiTrader account. The swap fee applied by AxiTrader adjusts for this revaluation, but contracts that are rolled over still incur the cost of the Bid–Offer spread.

    In order to minimise the Bid–Offer spread, AxiTrader typically switches to the next serial contract 1-2 trading days prior to the underlying instrument’s last trading day, a period when liquidity can be limited and extreme price fluctuations can occur.

  • What is the minimum volume I can trade for a CFD product?

    AxiTrader allows trading of micro lots (0.01 volume) on Standard and Pro accounts for all FX pairs, plus Gold, Silver, WTI and Equity Indices. 

    For all product specifications please refer to the Product Schedule.

  • How do I calculate my margin requirement for an Equity Index position?

    The following example is based on trading one standard lot on the Dow Jones 30 Index:

     

    Product: DJ30.fs

    Position Size: 1 standard lot

    Price: 17,498

    Contract Value: $5 per point                                      

    Margin Requirement: 1%

    Total Exposure: 17498 * 5 = $87,490 USD

    Margin: 1% * $87490 = $874.90 USD^

     

    ^You will need to convert the margin amount into your base currency if it is different to the currency of the index your position is opened

  • How do I calculate my margin requirement for a CFD commodity position?

    The following example is based on trading one standard lot on WTI Crude Oil:

     

    Product: WTI.fs

    Position Size: 1 standard lot

    Price: $41.58

    Contract Size: 1000 barrels

    Contract Value: $10 per point

    Margin Requirement: 1%

    Total Exposure: 41.58 * 1000 = 41,580 USD

    Margin: 1% * $41,580 = $415.80 USD^

     

    ^You will need to convert the margin amount into your base currency if it is different to the currency of the index your position is opened

  • What type of oil contracts do you offer?

    AxiTrader offers trading in West Texas Intermediary contracts (WTI) and Brent Crude contracts (BRENT).

  • Where do you get the pricing for oil from?

    Like all our commodity pricing, the oil price displayed on the MT4 platform mirrors the real-time market price from the ICE exchange for both WTI and BRENT.