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Products  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.

02
Trading case
  • 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).

  • 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. 
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