Q: What is the leverage ratio for US stock CFDs?
A: We provide a fixed leverage ratio of 1:5 for stock CFDs. This means that you only need to pay 20% of the total transaction value as margin in order to gain the corresponding market exposure.
When engaging in trading, we recommend that you fully assess the potential impact of leverage on your account funds for better risk management.
Q: What are the margin requirements?
A: The margin is the minimum amount that needs to be paid when opening a position. The calculation formula is:
Margin = Contract Value * Trade Volume ÷ Leverage (5x)
For example, when trading 1 stock CFD valued at $100, you only need to pay $20 as margin to open the position. (100 * 1 ÷ 5)
Q: What is the minimum/maximum number of contracts that can be traded?
A: The minimum trading lot is 1 contract (i.e., 1 share), and the maximum trading lot is 1,000 contracts (i.e., 1,000 shares).
Q: How are corporate actions (such as dividends, stock splits, or mergers) handled for stock CFDs?
A: When the underlying stock undergoes corporate actions (such as dividends, stock splits, or mergers), we will adjust your stock CFD positions accordingly.
For example:
Dividends: On the ex-dividend date, we will adjust your account balance based on the direction of your position.
Stock Splits: The number of shares and the price will be adjusted proportionally to ensure that the total position value remains unchanged.
Q: Do the newly added US stock CFDs support demo account trading?
A: Yes, all newly added US stock CFD products currently support demo account trading. You can familiarize yourself with the trading rules, spreads, and fees for each stock through the demo account, devise trading strategies, and prepare for live trading without taking on any real risks.
Q: What strategies or tools (such as stop loss, take profit, etc.) can help manage losses in US stock CFD trading?
A:
Stop-Loss: By setting a stop-loss point, your position will automatically close if the market moves unfavorably, helping to control losses. You can set the stop-loss at a fixed amount or percentage(e.g., 5%). For instance, when purchasing a US stock CFD, you can set the stop-loss 5% below the entry price, and if the price falls beyond this point, the position will automatically close to limit the loss.
Take-Profit: Similar to stop-loss, but used to lock in profits. Set a target price, and when the price reaches it, the system will automatically close the position to secure the profit. For example, when purchasing a US stock CFD, you can set the take-profit 10% above the entry price, and when the price rises to this level, the position will automatically close to realize the profit.
Diversified Investment: By allocating funds across different assets or markets, you can effectively spread risk and reduce the impact of volatility in any single market. For example, investing in multiple industries such as technology, energy, and consumer goods to reduce risks caused by fluctuations in any one industry.