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CFD Trading

What are the upcoming dividends for Friedberg Direct Index CFDs?

How are Index CFD dividends? For information on Index CFD Dividends please click here. How can I see when future dividends may impact my positions?…

What are Friedberg Direct's CFD margin requirements?

Friedberg Direct's CFD margin rates for each instrument are displayed in the dealing rates window on the Trading Station and in the CFD Margin…

What are Index CFD Dividends?

Dividends may impact the amount of overnight costs you pay or earn on your Index CFD position.  Index CFD's are made up of a group of stocks that…

Is there a maximum order size per trade ticket?

Friedberg Direct has no limits on maximum order sizes but there is a maximum limit per ticket. The Trading Station platform allows for order sizes up to 50…

What are the CFD Holiday Hours?

Due to the global nature of CFDs, traders should be aware of special holiday trading hours observed in each market. Friedberg Direct has provided a…

What are CFDs?

Clients of Friedberg Direct can trade Stock Indices, Oil, and Precious Metals from their Trading Station using CFDs. CFD stands for Contract for…

How do I calculate the Notional Values for a CFD?

When you place a CFD Trade with Friedberg Direct, you are using leverage* to control more money than you actually have to put down for the trade (margin).…

What is the CFD financing cost?

At Friedberg Direct, the financing cost for your CFD trade is referred to as ‘rollover.' This is the interest paid for holding a position past 5…

Where does Friedberg Direct derive the prices for CFDs?

CFD prices are derived from the underlying index or spot product. For Friedberg Direct Index CFD products, the quoted price is based on the relevant…

Is CFD trading limited to certain hours?

The hours for each CFD are determined by Friedberg Direct's Trading Desk based on the schedule for trading on the exchange for the underlying market,…

What are the costs and fees involved with trading CFDs?

Friedberg Direct is compensated by a markup which is added to the spreads it receives from its liquidity providers which is most traders' main…

Is there slippage for CFDs?

Like most markets, traders can experience slippage when trading CFDs. The level of slippage experienced will depend on liquidity in the market and the…

Is there a government regulator for CFDs?

Yes. CFDs are regulated in most countries in which they are traded. …

In what countries is CFD trading allowed?

CFDs currently trade in Australia, the United Kingdom, throughout the Euro Zone, Japan, Canada, South Africa, Switzerland, Canada, New Zealand, and other…

When I trade a CFD, how much am I trading?

Friedberg Direct uses a "lot-based" trading system. This allows our platform to aggregate all client positions into standardised trade sizes,…

Do I have control of the underlying asset when trading CFDs?

No. The CFD merely tracks the underlying price. However, it does give the trader rights or dividends associated with the underlying asset. …

Are there certain hours where CFDs are more active?

Since a CFDs price is based on the price of the underlying asset, peak trading hours are typically the hours when the exchange for the underlying asset is…

Who primarily trades CFDs? Small investors or large institutions?

Retail traders, speculators and hedge funds are the typical market participants for CFDs. CFDs are complex, leveraged products that can put clients at…

Are there initial and maintenance margin levels for CFDs?

Initial margin for each position can be seen in the Create Order window.   See Current CFD Margin Requirements Please be advised that trading on…

Are there any benefits to trading a CFD over trading the underlying asset?

Yes, there are. CFDs give traders a lot of options that he or she would not otherwise have, allowing the trader to be flexible. CFDs are traded with…

Are there expirations for CFDs?

Energy CFDs, which include UK Oil, US Oil, and NGAS have a monthly expiration. Treasury CFDs, like Bund, have a quarterly expiration. Copper, the only…

What is the liquidity like in CFDs?

Liquidity for CFDs is comparable to the underlying. Different indices and commodities experience different levels of volatility and liquidity. To see the…

What is the smallest amount a CFD price can move?

Under most conditions, the minimum price movement for each CFD is similar to the underlying. To see the full specifications for each asset, see the CFD…

Do margin requirements change for CFDs?

Yes, margin requirements can periodically change to account for changes in market volatility and currency exchange rates. Any margin changes will be shown…

What is Fair Value?

Fair Value is a calculation that factors various things that tend to affect the price of a stock index futures contract, such as interest and dividends. A…

What are the benefits of using CFDs to hedge exposure to an underlying asset rather than using options or futures?

CFDs provide a linear payoff: a rise or decline in the underlying asset will result in an equivalent rise or decline in a trader's account balance.…

What is the underlying asset?

The "underlying asset" is the instrument that a CFD is based on. For example, the underlying asset for the SPX500 is the S&P 500 Index of US…

What is a "pip" for CFDs?

A pip is the increment Friedberg Direct uses to account for profits and losses. It is the standard used in the Forex market, in place of "…

Is there more risk involved in trading a CFD over trading the underlying asset?

Trading with higher leverage means there is a greater risk of loss, as well as potential for profit. Depending on the amount of leverage used, small moves…

Are multiple accounts required to trade different types of CFDs?

No. An Friedberg Direct Trading Account provides access to trading in Forex, Equity Indices, and Commodities. …

Are CFD profits unlimited?

Friedberg Direct will impose no limits to profit. …

Will I receive credit for holding the underlying product when margin is calculated?

No. Since the underlying is held through a different account, there is no way to confirm an accurate hedge. …