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Allied Top Industrial (HK) Limited provides advanced online forex, index and CFD trading platforms to global investors
01
What is a CFD?
CFD means CFDs and has existed in different forms for many years. Simply, CFD is a financial
tool that uses margin to buy or sell financial products in a transaction without investing the
full value of the product.
CFDs were invented in the 1990s and introduced by stock traders, allowing clients of hedge fund
to use high leverage to expand the downside exposure risk. There is another benefit of CFDs:
there is no need to pay stamp duty. It was not until the late 1990s that with the rapid
development of technology, CFDs received extensive attention, making CFDs a major market in the
past decade.
Because of the use of leverage, traders have the opportunity to speculative by leverage on
highly fluctuating stocks in a short period. CFDs are now widely used in many markets and not
limited to the stock market. Not only professional traders can use, but also for retail
customers at home. According to relevant report statistics, more than 25% trading volume of the
UK stock market is CFD trading. Now Canada, Singapore, Eastern Europe and other countries have
also started CFD trading.
If you have never traded CFD, you can learn how to use our platform with a demo account while
improving your trading knowledge on our education page.
For more product information, please check our market information sheet. To start a zero
commission trading, please register a real account.
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A. T + 0 Shares Calculation Method
At T + 0 stock CFDs, stocks are traded in RMB but settled in US dollars, the unit of stock
fluctuation is 0.01, a unit of fluctuation is 100 RMB. The trading unit is lots , 1 lots stand for
the 10,000 shares, for example, choosing 20 leverage (5% margin) mode to buy 1 lots of a 10 yuan
stock.
1. Frozen Margin Calculation
The order required 1 lots (10,000 shares) x 10 yuan (stock price) x 5%=5000 RMB, because most of the
investment company servers are registered in foreign countries and traded in US dollars, it
converted to 773.04 USD at 6.468 exchange rate.
2. Charge Calculation (usually 4.5‰ for order and 1.5‰ for selling)
Order charge of 1 lots (10,000 shares) x 10 yuan (stock price) x 4.5‰=450 RMB (converted to 69.57
USD at 6.468 exchange rate)
Selling charge of 1 lots (10,000 shares) x 10 yuan (stock price) x 1.5‰=150 RMB (converted to 23.19
USD at 6.468 exchange rate, the investment company minimum charge is 50 USD).
3. Profit And Loss Calculation
To 10 yuan stock fluctuate 0.5 RMB calculated, 0.5 RMB for 50 units are equivalent to the profit and
loss 5000 RMB (converted to 773.04 USD at 6.468 exchange rate).
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B. The Calculation Of International Gold And Silver
Gold and silver are traded in dollar and settled in dollar, with lots as a unit, margin of 1 lots
gold and silver is fixed 1000 USD, in general investment company, the charge of 1 lots gold is 50
USD, the spread is 50 points (50 USD). There is no charge for silver, but there is a spread of 5
points, and the spread of 1 point is 100 USD.
For example, the gold price of American Stock Exchange is 1,174 USD, and the charge of 1 lots gold =
100 USD, which is equivalent to a loss of 100 USD after ordering.
For example, the silver price of American Stock Exchange is 12 USD, and the charge of 1 lots silver
= 500 USD, which is equivalent to a loss of 500 USD after ordering.