CFD FAQs

Questions answered about CFDs

If you believe an asset’s price is going to rise, you open a buy position (known as ‘going long’). If you think the asset’s price is going to fall, you open a sell position (known as ‘going short’). The performance of the market governs not just whether you make a profit or loss, but also by how much. So let’s say you think a particular market will rise, and you buy a CFD - your profit will be greater the further the market rises, and your losses greater the further it declines. The same rule applies if you expect a market to fall; you’ll make more the further the market drops, and lose more the further the market rises.

You can trade on your easyMarkets platform on any device (mobile, tablet & PC). Log into the trade zone and choose the market you want to trade from the ‘Market Explorer’. You can access all available markets on your MT4 account in the ‘Market Watch’.

CFD trading gives you a wider choice of products to access the excitement of the financial markets. Whether you have insights into agriculture, energy products, global currencies or equities, you can now get easy access to trade them. You may trade with a low margin requirement (remember - with greater leverage comes greater profit or loss) and they provide an excellent alternative to suit a variety of trading styles or methods e.g. short or long-term investors can find the right product to complement their preferences.

We have one of the broadest selections of currencies, metals, commodities and indices available as CFDs on the market and offer some of the most competitive spreads. Combining that with top class customer service and education makes us the preferred platform for both new and experienced traders.

Your trades are executed automatically, with absolutely no requotes and you get fixed spreads and guaranteed stops on the easyMarkets platform.

We have a wide range of Currencies, Commodities, Energies and Indices available for Day Trading, Forward Orders and Vanilla Options (easyTrade). Our commodities include a selection of the most tradable instruments from the agricultural and energy sectors as well as precious metals and copper. Access equity indices from across the globe including the most popularly traded from USA, UK, Europe, Asia and Australia

Like all products the leverage is flexible, although this may vary among different CFDs.

Indices Example:

You would like to speculate on the level of the US 500 (SPI), an index tracking the 500 largest US stocks. Note: all prices are in USD.

The index trades currently at 1860.00 points.

A standard contract for the US 500 is 50 times the index trade rate. So the current value of a US 500 contract is 50 x 1860.00 = $93,000.

You decide that the American economy will improve and that US stocks will appreciate. So you buy one contract and as you predict, the US 500 rises to 1865.00.

As you are trading on margin (with leverage), you only need to put up a fraction of the whole price as collateral.

The contract is now worth 50 x 1865 = $93,250.

You close the position at 1865.00 and make a profit of $250.

 

Commodities Example:

You would like to speculate on the price of oil and decide to trade Brent Crude (BRT). Note: all prices are in USD.

BRT currently trades at $108.00 per barrel.

A standard contract for BRT is 1,000 barrels. So the current value of a BRT contract is 1,000 x 108.00 = $108,000.

You decide that consumers are moving to more fuel efficient cars and that demand for BRT will drop. So you expect that this may push down the price of BRT.

You sell one contract and as you predicted Brent falls to $107.00 per barrel.

As you are trading on margin (with leverage) you only need to put up a fraction of the whole price as collateral.

The contract is now worth 1000 x 107.00 = 107,000.

You close the position at 107.00 and make a profit of $1,000.

Futures contracts, on which our Commodities and Indices are based, have an expiration date and our traders will be able to close their positions any time until that date. The expiration of each CFD and option deal is displayed in your easyMarkets’ platform trade ticket, open positions. And on the MT4 Market Watch, hover over the specific product to get more detailed information.

Like forex, when you trade CFDs you don’t take possession of the physical product, e.g. when you buy 100 barrels of oil these will not be delivered to your door. However as they are based on the underlying oil market, each contract has a set delivery date. Once we reach that date, trading stops for that contract and the next contract starts trading immediately. Any positions on the expired contract will be closed on that date, in either profit or loss.

Please check expiry dates before opening any positions. We will also send you an email notifying you of upcoming expirations of your open trades one day before.

easyMarkets charges no credit or debit card fees or commissions. However you do trade on a spread between the buy and sell price. Each product has its own spread depending on its trade characteristics. We have some of the most competitive spreads on the market. Please contact your relationship manager for further information. If you hold your deal open for longer than a day you are charged a small rolling fee.

What our Traders say about us

Innovating since 2001

easyMarkets has been serving its customers since 2001. From the very beginning we have strived to offer our clients the most innovative products, tools and services.

Regulation and Security

easyMarkets is regulated by both ASIC and CySEC. We offer our clients negative balance protection and their funds are held in segregated accounts.

 

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