• What are CFDs?
• Features & benefits
• What is Direct
  Market Access
• Comparison of CFD against
  Traditional Stock Trading
• Commission & Financing
  Rates
• Why CGS-CIMB
  Securities' CFD

What are CFDs

CFDs or Contracts for Difference are an agreement between two parties to exchange, at the close of the contract, the difference between the opening price and closing price of the contract, multiplied by the number of underlying stocks specified in the contract.

For CFDs on listed securities, they are traded in a similar way and can be used as an alternative instrument instead of trading on the underlying. It allows clients to gain exposure to stock price movements, without the need for ownership of the underlying stocks.

We also offer CFDs on FX and Index, so you can have the flexibility of trading these instruments on the same CFD platform without the need to log in to another system or to maintain a separate cash balance.

You will be able to take long or short positions on CFDs without paying the full contract value of the underlying position. You are only required to place a cash deposit (known as initial margin) as collateral.

CFDs do not have an expiry date and you will be able to hold the position indefinitely as long as you are able to meet your margin and interest requirements.*

* Please refer to Terms and Conditions Applicable to Contracts for Difference ("CFD Terms and Conditions") for full details.