Monday, January 11, 2016

How to Short KLCI using CFD

Will KLCI Drop like the rest of the world? Do you know China drop 12% in the first week of 2016? KLCI drop from 1866 to 1500 in 2015(that was near 20%). Many people ask how can they short KLCI index, what I am using is CFD, reason being it is a leverage product, I dont have to buy 1:1 like shares.

How much you need for 1 contract of KLCI CFD?
Each contract only requires 5% margin (e.g like a deposit or down payment), which means if KLCI is now 1650, one contract will worth RM16500, but you only need 5% of that to own 1 contract which is RM825

How it works is each point up or down is reflected in the Name of the CFD contract
FBM KLCI MYR10 - this means each point is 10 Ringgit. If you long 1 contract and it goes up 20point, you make RM200, if down 20point you lose RM200
commission for KLCI cfd is RM5 per side/lot. Interest is 4% per year(usually you dont hold very long for index, so you can calculate this by per day basis)

More other CFD product details can refer to the link below.
Phillip CFD Products List (S'pore, M'sia, US, HK, China, World Indices, ETFs)

Expiry date?
For CFD all profit and losses are instant, if you make a profit, the money will credit into you available cash, if you lose it will deduct from your available cash. You can open a contract as long as possible and provided you have enough Available cash in your CFD account. Unlike futures, this does not have an expiry date that you have to close off the position.

Margin Call
In the Event your Available cash falls below ZERO, that will be the margin call, you can either choose to top up the account or you can close the position.

Getting Started
You have to Fund the account for CFD trading, Click ==> Can Contact me and my Team for the upcoming Seminar. Or 1 on 1 Consultation**T&C( Very Limited Seats, Contact us Now) <==Click

For CFD index trade, you have to note that you will receive dividend when you Long the index, and you will have to Pay dividend if you Short the index.

Below are the available Index on Phillip CFD

NoCompany NameSymbolMarketTypeTrade
Min Size
1Aust200 Index A$5 CFDASX.OIINDXIndexA $15%LongShortTarget Spread: 3 pts.
2FBM KLCI MYR10 CFDKL.OIINDXIndexRM15%LongShortTarget Spread: 3 pts.
3FTSE China A50 USD1 CFDCNA.OIINDXIndexUS $120%LongShortTarget Spread: 10 pts (09:01 - 15:53), 20 pts (16:41 - 01:54)
4Gold USD100 CFDGD.OIINDXIndexUS $120%LongShort
5Hong Kong Index HKD5 CFDHSI.X.HKINDXIndexHK $15%LongShortTarget Spread: 8 pts.
6Indonesia Index USD1 CFDINDO.OIINDXIndexUS $120%LongShort
7Japan 225 Index JPY100 CFDN225.JPINDXIndex¥15%LongShortTarget Spread: 10 pts
8Singapore Index SGD20 CFDSGBC.OIINDXIndexS $15%LongShortTarget Spread: 0.3 pts
9Straits Times Index SGD5 CFDIXP/N.SGINDXIndexS $15%LongShortTarget Spread: 3.6 pts
10Taiwan Index USD20 CFDTW.OIINDXIndexUS $120%LongShortTarget Spread: 0.3 pts
11Tokyo Index JPY1000 CFDTBI.OIINDXIndex¥15%LongShortTarget Spread: 1 pt
12US Rus2000 Index USD10 CFDRUSSB.OIINDXIndexUS $15%LongShortTarget Spread: 0.5 pts
13US SP 500 Index USD5 CFDINXINDXIndexUS $15%LongShortTarget Spread: 0.5 pts
14US Tech 100 Index USD5 CFDNDX.XINDXIndexUS $15%LongShortTarget Spread: 1 pt
15Wall Street Index USD1 CFDDJIINDXIndexUS $15%LongShortTarget Spread: 4 pts