CFDs

Optimtrader offers CFD(Contract for Difference) trading on shares and indices. CFDs allow you to use leverage, which means  you are not required to provide the total value of the investment.

  • CFD price mimics the price of the underlying instrument
  • Ability to go short and take advantage of a declining market
  • Ability to trade on Margin
  • Use ETFs to hedge your portfolio through short and leveraged ETFs
  • Recieve dividends when long and pay dividends when short

*CFDs are complex financial instruments and because of the leverage effect they carry a high risk of losing money quickly. A majority of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. The risk is not limited to the money invested. It may include the  obligation of additional contributions to the invested money. Investment success in the past does not guarantee success in the future. 57% of retail investor accounts lose money when trading CFDs with Optimtrader.

Leverage

CFDS are a leveraged product, so you only need to deposit a percentage of the total value of the trade. That allows you to enhance returns and levels of market exposure. Below are the initial margin percentages by different underlying assets you are required to have in order for the position to be opened:

(a) 3.33% of the notional value of the CFD when the underlying currency pair is composed of any two of the following currencies: US dollar, Euro, Japanese yen, Pound sterling, Canadian dollar or Swiss franc.

(b) 5% of the notional value of the CFD when the underlying index, currency pair or commodity is:
(i) any of the following equity indices: Financial Times Stock Exchange 100 (FTSE 100); Cotation Assistée en Continu 40 (CAC 40); Deutsche Bourse AG German Stock Index 30 (DAX30); Dow Jones Industrial Average (DJIA); Standard & Poors 500 (S&P 500); NASDAQ Composite Index (NASDAQ), NASDAQ 100 Index (NASDAQ 100); Nikkei Index (Nikkei 225); Standard & Poors / Australian Securities Exchange 200 (ASX 200); EURO STOXX 50 Index (EURO STOXX 50)
(ii) a currency pair composed of at least one currency that is not listed in point (a) above(c) 10% of the notional value of the CFD when the underlying commodity or equity index is a commodity or any equity index other than those listed in point (b) above.

(c) 10% of the notional value of the CFD when the underlying commodity or equity index is a commodity or any equity index other than those listed in point (b) above.

(d) 6.25% of the notional value of the CFD when the underlying asset is gold.

(e) 14,85% of the notional value of the CFD when the underlying asset is silver.

(f) 20% of the notional value of the CFD when the underlying is a share;

Optimtrader does not offer CFD trading with interest rates, bonds, raw materials and energy.

For a similar and usually smaller cost per trade you can gain 10 times the result from a trade due to inherent leverage. This means a more efficient use of your capital as there is on need to invest the full value of the shares. Trading hours of Indices CFDs are listed in the table below:

Index NameTagOpening Hours
STOXX50E - EURO 50IBEU5009:00 - 22:00
SMI - SWITZERLAND 20IBCH2009:00 - 22:00
S&P500IBUS50009:00 - 22:00
NI225 - JAPAN 225IBJP22502:00 - 8:00
NASDAQ 100IBUST10009:00 - 22:00
IBEX35 - SPAIN 35IBES3509:00 - 22:00
HSI - HONG KONG 50IBHK5001:30 - 8:00
FTSE100 - UK 100IBGB10009:00 - 22:00
DJI - Dow JonesIBUS3009:00 - 22:00
DAX - GERMANY 30IBDE3009:00 - 22:00
CAC40 - FRANCE4 40IBFR4009:00 - 22:00
ASXSP200- AUSTRALIA 200IBAU20000:10 - 6:00
AEX -NETHERLANDS 25IBNL2509:00 - 22:00
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