CFD Trading

Q1. How are CFD prices quoted?

CGS-CIMB Securities CFD uses Direct Market Access (DMA).

DMA allows our CFD clients to have direct market access to the underlying security market through our CFD platform. Our CFD clients will be participating in the market at prices identical to that of the underlying security market.

You may refer to this link https://cfd.cgs-cimb.com.sg/cfd.html for more information.

Q2. How is the CFD contract value computed?

CFD Contract Value = Quantity of CFD contract purchased X CFD Price

Q3. What is the contract size of CFDs?

As CGS-CIMB Securities uses the Direct Market Access (DMA), contract size depends on the lot size that the underlying securities are traded in.

Q4. What are the trading hours for CFDs in the different markets?

Trading hours for CFDs are the same as the trading hours of the underlying securities and their respective exchanges, e.g. if the underlying security is listed on the Singapore Exchange ("SGX") the trading hours for that CFDs will be the same as the SGX trading hours.

Please refer to "Our Products" section for further details regarding trading hours.

Q5. Are the prices quoted live?

For Singapore market, the live market feed is FREE.

For most other markets, the market feed is delayed.

For further details on the data feed costs and whether they are Live or Delayed, please click here and refer to the Data Feed Charges Schedule.

Q6. Are equity CFDs traded on the Stock Exchange?

No. A CFD is an over-the-counter product and therefore is not traded on any exchange.

Q7. What are the counters available for CFD trading?

After logging into the CFD Trading Platform (Viewpoint), you may refer to the "Margin Watchlist" widget for tradable counters.

Q8. Can I trade in other markets such as commodities, gold, indices, forex, options?

Yes, you can trade in other markets as well. For the full list of CFD products, please refer to "Our Products" section

Q9. How long can I hold a CFD position?

Other than CFD Futures, there are no expiries on your CFD positions. You can hold on to the position as long as you maintain the required margin, which may vary based on the daily mark-to-market pricing. You should note that financing charges are imposed on any open positions.

Please click here to view the Commission and Financing Tables.

Q10. Can my CFD orders be partially filled?

Yes. The balance of the order will continue to work in the market until it is either filled or cancelled.

For markets where orders can be placed Good-for-The-Day ("GTD") only, the balance orders will be cancelled at the end of the trading day.

Q11. Can I delete or amend the CFD orders?

Yes. If the order is not done, you can either delete or amend the CFD orders.

Q12. How would I know the status of my CFD orders?

You may view your order status under the "Order Pad" window of the CFD trading platform.

Alternatively, you may refer to your preliminary statement sent via email sent to you at the close of Singapore Market hours or refer to the close of business (C.O.B.) statement on the following business day.

Q13. What will happen to my CFD position if the underlying securities are suspended?

If any of the CFD underlying securities ceases to be quoted on a relevant exchange, or are under halt/suspension, CGS-CIMB Securities may at its absolute discretion, elect to terminate the relevant CFD or vary the margin requirement for the CFD depending on the situation.

CGS-CIMB Securities will determine the CFD Contract Value at its sole discretion upon termination.

Q14. Is short-selling allowed?

Yes. Short-selling is allowed as long as the underlying security is available for short-selling. You are able to obtain the shortable list from the “Margin Watchlist”, sort for “Y” under “AllowShort” column.

Q15. What are the underlying securities available for shorting in equity CFDs?

For equity CFDs, the list of underlying securities that can be shorted are maintained online and may vary daily.
You are encouraged to check from the margin table in the CFD online trading system.

Q16. Do I earn interest on my CFD short position?

Yes. Interest is paid based on the Base Rate less mark-up as provided in the commission and funding rates schedule.
However, if the Base Rate is low for certain markets and after factoring in the mark-up rates imposed by CGS-CIMB Securities, you may end up paying interest for short position.

Example: If the Base Rate for SGD CFD is 0.5% p.a. and the mark-up is 3.75% p.a., you would need to pay the financing interest of 3.25% p.a. for the open short position.

Intraday trades do not incur interest. Interest is calculated based on end of day valuation of underlying position.

Q17. What are the types of collateral acceptable and what are the payment modes available?

Only cash is accepted as collateral for CFDs and client can pay either through cheque, cashier or Internet funds transfer.

Q18. What are the costs and funding charges associated with trading in CFD?

Applicable charges are the CFD trading commission and funding charges for open CFD positions. Click on the link to find out more about the relevant charges.

Please click here to view the Commission and Financing Tables.

Q19. Are CFD clients entitled to dividends? According to the Terms and Conditions, it states that clients do not receive dividends.

A trade in equity CFD is not a trade in the underlying security.

You therefore do not receive cash or other dividends directly from the issuer of the underlying security as you are not the holder of the underlying security.

You will however receive an amount equivalent to the amount of such dividends from the CGS-CIMB Securities, to reflect the actual dividends paid on the underlying security.

Your CFD Account will be credited or debited accordingly with such amount. Dividend adjustments are applied if you have an open position in an underlying security on the ex-dividend date.

Q20. Am I entitled to dividend if I am trading foreign market CFDs?

Yes. The treatment will be exactly the same as Singapore CFD market.

Q21. How will corporate actions affect my CFD positions?

All corporate actions (e.g. rights issues, bonus issues, capital repayments) that are applied to the underlying security will be reflected in the value of your CFD account.

To reflect the actual dividends paid on the underlying security of any equity CFD which you have entered into, on ex-date, your CFD Account will either be credited for long positions or debited on short positions with an amount equal to the value of any cash dividend.

Odd lots trading must be executed off-line through your Trading Representative. CFDs do not confer voting rights in respect of the underlying security.