CFD Calculator For Indices

Updated  

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This CFD Calculator will help you Estimate & Calculate  CFD Indices Profit and Loss.

What is CFD Indices Trading

CFD full definition  is Contract of Difference

CFD Indices Is a Contract between the broker and her clients  , to exchange value  difference on Indices fluctuation  tie  to the  contract opens and closes trading  Intervals.

During the Process , the Clients nor the Broker  does not hold or own any Underlying  Indices assets.

Why CFD Indices Trading & Advantages

1.  You would like to bet against (Short)  or  ride (Long ) with the Indices.
2. Higher Leverage. Higher Profit .
3. CFD Indices Provide you global Access to Various Market  around the globe ( Example : Dow Jones , London Stock  Exchange , Shanghai Stock Exchange , STI etc)
4. CFD Indices  does not has any Day Trading Cap Entry Requirements , you  can enter any  position by just providing Sufficient  Margin   to your Account.
5. No Commissions , Broker Only charges Buy / Sell Spread

Disadvantages

1. High Risks , Higher Losses

What you need to Consider  when  trading CFD Indices

1. Do your Technical  Indices Research
2. Read Financial News
3. Be Sure you have sufficient Margin to cover your position when things go against your Odds.

What  are the Cost involves in  CFD Indices Trading

(A) Buy / Sell Spread . 

What is Buy spread ?

For Example STI ( Singapore Straits Time Index) current Open market Value   Indices is  2560

You would wanna  enter a Position .

CFD Broker  will charge you a Buy  Spread  eg: 5 for you to buy into the Position

Your Enter Position =  Current Open market Value   Indices + Broker Buy Spread= 2560 + 5= 2565

What is Sell spread ?

For Example STI ( Singapore Straits Time Index) current Open market Value   Indices is  2560

You would wanna  close your Position .

CFD Broker  will charge you a Sell  Spread  eg: 5  to Sell

Your Close Position =  Current Open market Value   Indices + Broker Buy Spread= 2560 – 5= 2555

(B) Borrowing and Funding Fee

Funding can be divided into Intraday funding or Overnight funding

Intraday trading -> Means Position will be closed in the same trading day

Overnight trading -> Means Position remain open more than 1 Single trading Day

The CFD Broker will  charge you Borrowing Interest Fee  to Fund your trade

Borrowing Fee = Numbers of Days x Number of contracts x Contract size x Index price Closing Position x (Broker Interest –  Country Interbank Interest Offered Rate)

(C) Currency Exchange Admin Fees

CFD Broker will  charge Currency Exchanges Admin Fee , when you trade Oversea Indices

For Example

You would like to open a position at Hong Kong HS50 Indices

As  your CFD Broker in Singapore only processes in SGD Denomination

the Broker will need to convert your SGD to HKD  denomination in order to help you to open a position at  Hong Kong HS50 Indices

An administration Fees ranging 0.1% to 1%will be charge , depends on individual Broker

(D) Margin 

Number of contracts x Contract size x Index price level x Margin rate

This is the Amount you are required to fund your CFD account in order to open a position

CFD Calculator For Indices , How to Use

Inputs that you need feed in

Open Market Value (Open Position) -> Is the exact Open Market  Indices Value   when you open a Position

Close Market Value (Close Position) -> Is the exact Close Market  Indices Value   when you close a Position

Broker Buy / Sell Commission Spread -> Spread Offered By your Broker to Buy or Sell

Value Per-point For 1 CFD Contract -> What is the Value of One Point / Indices  x 1 Contract

Number Of Contracts -> How Many Contracts you would want to open

Long/Short -> Trading Type ( Long or Short )

Indices Market -> Which Market Indices you are choosing

Number Of Days Contract Holding -> How Many Days Position Remain Open

Margin Leverage -> Percentage of Leverage 5% / 10 % etc

Brokerage Funding Interest(in %) -> How much the Interest Your CFD Broker Charge you to fund your trade

Country Interbank Offered Rate -> What is the Countries  Interbank Offered Rate of your trading Indices Market ? Libor  Sibor etc

Day Count Convention -> What are the base Days for Lending 360 or 365

Market Currency Medium -> Example Dow Jone  -> USD  Hong Kong HS50 Indices -> HKD

Broker Currency Medium-> CFD  Broker  Account Transaction Currency . Example if your CFD Broker is from Singapore the Transaction Currency is SGD.

Currency Conversion Rate -> What is the Currency Conversion rate

Currency Conversion Admin Fee -> A fee Charge by your Broker to convert your Currency

After you Inputted all Parameters Click Calculate ( Profit And Lost at Second Column)