CFDS

With CFDs (Contracts for Difference) you can trade different asset classes such
as S&P 500 Index and WTI Light Sweet Crude Oil.

CFDs or contracts for differences are traded on margin between a trader their CFD provider, in an agreement to pay or receive the cash differential between the opening and closing prices of a transaction. CFDs allow retail investors to trade products that may not usually be accessible to retail investors,such as equity indices and futures. Trading CFDs is flexible you can trade long (if you think it is going up in value) or short (if you think it is going down in value) and there are no commission, trading fees, clearing fees or stamp duty to pay.

One Single Account

You can trade across multiple asset classes from just one account .Trade CFDs, forex pairs and precious metals on a single dealing platform. Clients can build their diversified investment portfolio in this account and can easily manage and monitor their exposure.

Hedging with CFDs

You can use CFDs to short sell and to profit from falling market. Traders can use this facility as a hedging tool against a portfolio. So if you have a portfolio of UK Blue chip stocks, which you wish to keep for the longer term, despite the fact you believe that stock prices could fall in value .You could mitigate any near term losses by shorting the CFDs for the UK 100.

Effective on 7 August 2017, Monday

MT4 Code Trading Hours (GMT)* Break Time (GMT) Active Session (GMT) Target Spread Indicative Spread Trade Size Minimum (lots) Trade Size Maximum (lots) Trade Size Step (lots) Standard Contract Size Minimum Value per Tick (CCY)
A50 22:00 – 21:00
Sunday – Friday
 N/A  00:55 – 08:25  8.1  30.1 0.1  10  0.1  10  1 USD
AUS200  23:50 – 21:00
(Fri 20:45)
 Daily from 06:30 – 07:10, 21:00 – 23:50 03:00 – 06:30 1.1 1.8 0.1   10  0.05  20  2 AUD
DE30  22:00 – 21:00 
Sunday – Friday
 N/A 07:00 – 15:00 0.9 4.1  0.1   10 0.05  20  2 EUR
ES35  22:00 – 21:00 
Sunday – Friday
 N/A 06:00 – 15:00 8.3 22.3  0.1   10  0.1  10  1 EUR
F40  22:00 – 21:00 
Sunday – Friday
 N/A 07:00 – 15:00 0.9 1.8  0.1   10  0.1  10  1 EUR
HK50  22:00 – 21:00 
Sunday – Friday
 N/A 01:00 – 03:55 8 19  0.1   10  0.02  50  5 HKD
JP225

 23:00 – 20:15

Sunday – Friday

 Daily 20:15 – 23:00 23:00 – 10:00 12.2 11.1  0.1   10  0.01  500  50 JPY
STOXX50  22:00 – 21:00 
Sunday – Friday
 N/A 06:00 – 19:55 1.2 2.2  0.1   10  0.1  10  1 EUR
UK100  22:00 – 21:00 
Sunday – Friday
 N/A 07:00 – 15:30 1 1.6  0.1   10  0.1  10  1 GBP
US30  22:00 – 21:00 
Sunday – Friday
 N/A 13:30 – 20:00 1.7 5.5  0.1   10  0.1  10  1 USD
US100  22:00 – 21:00 
Sunday – Friday
 N/A 13:30 – 20:00 0.9 1.6  0.1   10  0.05  20  2 USD
US500  22:00 – 21:00 
Sunday – Friday
 N/A 13:30 – 20:00 0.43 0.83  0.1   10  0.02  50  5 USD
USOil  22:00 – 21:00 
Sunday – Friday
 Daily from 21:00 – 22:00 13:30 – 20:00 0.05 0.05  0.1   10  0.01  1000  10 USD
UKOil

 Sunday – Friday

00:00 – 22:00

 Daily from 22:00 – 00:00 13:30 – 20:00 0.05 0.05  0.1   10  0.01  1000  10 USD


*Server Time is subject to Daylight Saving Time (DST), which begins on the last Sunday of March and ends on the last Sunday of October. Server Times: Winter: GMT+2, Summer: GMT+3 (DST).

Leverage

Leverage allows you to hold a larger positions than your initial cash deposit would otherwise allow. Your deposit is multiplied or leveraged by your broker to increase the value of your underlying investment. The higher the level of leverage applied,then the larger the position a trader can hold open, for the same size of initial deposit.

For example,a client using leverage or gearing of 100:1 could control a position in the forex market of $100,000 with a margin requirement of just $1,000. If they use a leverage ratio of 200:1, then the client would only need an initial $500 to open this position.

Leverage or gearing can raise the potential for high returns when the market moves in your favour. However, you should note that leverage will act against you if and when the market moves in the opposite direction to your prediction.

Leverage Levels

The default leverage level is set at 1:50, however, clients can request a higher leverage of up to 1:400. Higher leverage levels are subject to approval based on the results of the internal appropriateness test. 

Margin Requirement

When an investor opens an account with a broker, an initial deposit is required in order for the investor to be able to open a position in the market. This cash deposit acts as a buffer to cover any credit risk / market movement. Depending on their agreement, the investor will allowed by the broker to leverage their deposit up to a predetermined limit.

The margin requirement for a forex trade is calculated by using the following formula:

Margin = (Lot Size * Contract Size * Opening Price) / Leverage

Examples below based on a Standard /Classic account 1:100.

Forex Margin requirement for one standard contract position in EUR/USD at 1.2500 is calculated as follows:
Margin = (1 * 100,000 * $1.2500) / (100) = $1250.00
Spot Gold Margin requirement of one standard contract position in Gold at 1579.01 is calculated as follows:
Margin = (1 * 100 * $1579.01) / (100) = $1579.01
Spot Silver Margin requirement for one standard contract position in Silver at 28.70 is calculated as follows:
Margin = (1 * 5000 * $28.70) / (100) = $1435.00

Note: Interest is not required to be paid on the borrowed amount, but if the investors decides to hold his position overnight, interest will be charged as the rolled over rates on the total positions held.

Margin Call

A Margin Call is a level nominated by a brokerage that sets out the minimum amount of money required to trade in the market. If your account falls below the margin call level, you will need to make a further deposit in order to maintain your open positions. Or should you prefer you can close some of your outstanding positions to reduce your margin requirement. At Blackwell Global, Margin Call is set at 120%.

Stop Out Level

In the event that you are unable to maintain sufficient funds in your account after reaching the Margin Call level, and if the value of your account subsequently depreciates to the Stop Out level, your positions will be closed automatically, in order to prevent further losses to your capital. At Blackwell Global, Stop Out level is set at 80%.

Swaps

Blackwell Global CFD trading is only undertaken on a “spot” basis with all trades settled two business days from inception, as per market convention. Blackwell Global uses internationally recognised benchmarks based on overnight deposit rates as a basis for determining applicable interest rates. Spreads around these benchmark interest rates are applied to determine the rollover interest rate.

This rollover interest is calculated and applied to accounts at (22:59 Server time) on a daily basis. Please note Blackwell Global do not arrange for or undertake physical delivery.

Because CFD trades settle two business days from their inception, any open positions held from Wednesday to Thursday, on a trade date basis, are charged three times the rollover interest . This additional payment takes account of interest that would have been charged on Saturday and Sunday when the market is closed.

Product Name MT4 Symbol Average Spread
Australia 200 Index AUS200 3
Germany 30 Index DE30 1.2
Spain 35 Index ES35 9
France 40 Index F40 2
Hang Seng 50 Index HK50 11
Japan 225 Index JP225 12
EU Stocks 50 Index STOXX50 3
UK 100 Index UK100 2
Wall Street Index US30 3
SPX500 Index US500 0.7
US Tech 100 Index US100 2
 

 

Example 1 Trading on the Futures Exchange

Day 1 WTI Crude Oil is at $106.11
SHORT 8 futures contracts at $106.11

Opening value =
8 X 1000 (contract size) X $106.11 = $848,880.00
Margin requirement (Capital outlay) =
$848,880.00 X 1% = $8,488.80
Day 2 WTI Crude Oil drops to $105.20
CLOSE 8 futures contracts at $105.20

Closing value =
8 X 1000 (contract size) X $105.20 = $841,600.00
P & L =
Payoff – Exchange/Futures Commission Merchant fees (sell and buy)
= ($848,880.00 – $841,600.00) – ($15×2)
= $7,250.00

Example 2 Trading of Crude Oil Futures CFD

Day 1 WTI Crude Oil is at $106.11
SHORT 8 lots at $106.11

Opening value =
8 (lots) X 1000 (contract size) X $106.11 = $848,880.00
Capital outlay (based on margin of $1500 per lot) =
$1,500 x 8 =$12,000.00
Day 2 WTI Crude Oil drops to $105.20
CLOSE 8 lots at $105.20

Closing value =
8(lots) X 1000 (contract size) X $105.20 = $841,600.00
P & L = Payoff + Rollover interest=($848,880.00 – $841,600.00) + (-$32.07)
= $7,247.93

Example 3 Trading of Index CFD

Day 1 S&P500 Index is at 1,677.00
BUY 5 lots at 1,677.00

Opening value =
5 lots X 50 (contract size) X 1,677.00 = $419,250.00
Capital outlay (based on margin of $1500 per lot) =
$1,500 x 5 = $7,500
Day 2 S&P500 Index rises to 1,686.20
CLOSE 5 lots at 1,686.20

Closing value =
5 lots X 1 contract size X 1,686.20 = $8,431.00
P & L = Payoff + Rollover interest =
= ($8,431.00 – $8,385.00) + (-$0.38)
= $45.62