Frequently asked questions - CFD Trading

Can't find an answer to your question here? Please feel free to contact our Client Management team at +65 6826 9988 or email us at enquiries@cityindexasia.com

Your account

Q1: What do I do if my personal details change?

A1. If your address or other details change, please login to your account and update your details online.  Alternatively you can call our Client Management team.

Q2: How do I transfer funds into my account?

A2: For Singapore residents, you can deposit funds into your account by cheque, ATM, internet banking and wire transfer. International customers will have to use wire transfer to deposit funds into their accounts. We will only be able to accept payments from the named account holder.

Q3: How do I make payments?

A3: See detailed information on the various funding methods.

For further detail on various funding methods please call us on 1800 8269953 (call toll free from Singapore) / +65 6826 9953 (call worldwide) or email us at enquiries@cityindexasia.com.sg.

Q4: How do I transfer funds out of my account?

A4: If your address changes, please contact Client Management on 1800 8269953 (call toll free from Singapore) / +65 68269953 (call worldwide) or email us at enquiries@cityindexasia.com.sg

To transfer funds out of your account, you will need to send a written instruction to our Client Management team either via email at enquiries@cityindexasia.com.sg or post (City Index Asia Pte Ltd, 6 Battery Road, #40-06, Singapore 049909). Instructions received by City Index Asia Pte Ltd before 12 noon (Singapore time) will be processed within the same working day. Instructions received by City Index Asia after 12 noon (Singapore time) will be processed on the next working day.

For clients with banking accounts based in Singapore, we will only return funds to the client via cheque and made payable to the client's name.

For clients with offshore banking accounts outside Singapore, funds will be wire transfer to clients. Wire transfers typically would take three working days and all Telegraphic Transfer charges will be borne by the client.

Trading CFDs

Q5:  What does trading as principal mean?

A5: In conventional share trading clients will deal through a broker who places their trade with a range of market makers. The stockbroker is acting as an agent, searching out the best price for their client.  This is not the case with CFD trading. In this instance you are dealing with the provider and are contracting directly with them.

Q6: How long can I hold a CFD for?

A6: There is no expiry for a CFD trade, but please remember that if you hold a long position you will be charged overnight funding.

Orders

Q7: How do I place a guaranteed stop loss order?

A7: You can leave a guaranteed stop when you open your position, either online or by phone.  You will be charged a small premium for placing your guaranteed stop.

Q8: What is a linked stop loss order?

A8: A linked stop loss is a stop order that is put in place to limit the risk of a market moving against a current open position. If the open position is closed, either by an opposing trade or order activation, then the linked stop loss order ceases to exist.

Q9: What is a linked limit order?

A9: A linked limit is a limit order that is linked to an open position.  If that open position becomes closed for any reason then the linked limit order will cease to exist. 

Q10: Can I amend stop loss orders when the market is closed?

A10: No. You are unable to amend existing orders out of market hours.This is because your current orders may be used to establish your margin requirements and as such we cannot allow them to be amended when markets are closed.

Q11: Can I amend/cancel orders and if so, how?

A11: You can amend or cancel an Active Order by entering the 'Active Order' tab on the trading platform.  Please note you can amend or cancel a Limit Order outside of trading hours, but not stop loss orders.

Q12: Are orders active when markets are closed?

A12: Orders are only monitored and executed during City Index trading hours (not necessarily underlying market trading hours).  In the case where a market continues to trade outside of City Index hours we will execute any triggered orders at the first available price in our opening hours which may be different to the order level. However if the market has moved beyond the trigger level and returned by the time that City Index re-opens, the order may not be executed.

Margins

Q13: What is Margin Requirement?

A13: Margin Requirement is the deposit required in respect of each open bet on your account. When you place a trade you must have enough funds to cover the Margin Requirement applicable to that trade. You must also maintain the Margin Requirement deposit level above any profits/losses on your account.

Q14: How do I calculate Margin Requirements?

A14: Margin Requirement is calculated as a percentage of the position.  Please make sure you are aware of the Margin Requirement applicable before you open each trade, details of our markets can be found in the on-line Market Information icons on the Trading Platform.

Q15: How do I find out what the Margin Requirement is on an individual stock?

A15: Details of our markets can be found in the on-line Market Information icons on the Trading Platform. If you are unsure of Margin Requirements for a particular market/stock you should always call the dealing desk to confirm before placing a trade to ensure you have enough funds to trade.

Q16: Will my profitable positions offset losses on my negative?

A16: Yes, open profits or losses are both taken into account when calculating margins.

Q17: Whats is Margin Close Out and how do I find my Margin Close Out level?

Margin Close Out is a risk and margin management feature. This feature puts you firmly in charge of your margin availability, replacing margin calls.

You can find your Margin Close Out Level in the Key Service Features document. If your Margin Level (a percentage figure representing the ratio of Net Equity to Total Margin) is at or below your Margin Close Out Level, we may close all or any of your Open Positions immediately and without notice.

A  Margin Level Indicator is provided in the left hand corner of the trading platform. This feature allows you to monitor your Margin Level in order to maintain it above the Margin Close Out Level.  

Q18: Who is responsible for monitoring my margin?

Our margin policy includes rights to effect closure at the Margin Close Out Level. If your Margin Level is at or below the Margin Close Out Level, we may close all or any of your Open Positions in markets that are open immediately and without notice at the next available Our Price. You should not expect to receive a margin call or warning prior to closure. We therefore strongly recommend that you strictly monitor your margin level. To find out more about the Margin Close Out Level, please refer to Section 11 of our General Terms.

Trading Costs

Q19: Why is there a charge to hold the position open when I have paid a commission?

A22: You only pay a financing charge if you hold a long position. This is because CFDs are a margined product. You only deposit a fraction of the overall value of the trade (typically 10%), allowing you to make a much larger potential investment than if you were buying the shares. So for example, £1,000 would be needed to buy a CFD representing £10,000 worth of shares. You are effectively 'borrowing' the £9000 difference, hence the financing charges.

Q20: Do I get charged commission for buys and sells?

A23: Yes. The opening and closing trade is effectively two separate trades, and therefore you are charged commission for each trade.

Dividends

Q21:  Do I receive dividends the same way as shares?

A24: CFDs are subject to a dividend adjustment intended to replicate the net dividend payment applicable to the ordinary share. A dividend adjustment is credited to long positions and debited from short positions held at the close of business on the day before the ex-dividend date. Payment is credited or debited to your account on the ex-dividend date.