Balance: deposits - withdrawals + P&L of closed positions.
It does not include the profit/loss of the current open positions.
Free Margin : balance + P&L of open positions - initial margins.
This is the amount you have available on your account.
P&L: profit + loss + daily overnight funding * number of days.
This is the total profit and loss for all open positions including daily overnight funding.
Equity: balance + P&L of open positions.
This is the current value of your account.
This information is available to you on the main platform screen. It is displayed in the Trading Tab of the Toolbox window.
Initial Margin = (position's opening price*size of the trade)*initial margin percentage.
For example, let’s suppose you buy 30 Facebook stocks CFDs for $75 each (a "Buy" position), then the value of the position would be 30*75=$2250. If the Initial margin percentage were 20%, then the required initial margin would be 20%*2250=$450.
Maintenance Margin = (position's opening price*size of the trade)*maintenance margin percentage.
For example, let’s suppose you buy 30 Facebook stocks CFDs for $75 each (a "Buy" position), then the value of the position would be 30*75=$2250. If the maintenance margin percentage were 10%, then the required maintenance margin would be 10%*2250=$225.
Double click on the position to close and select “Close Position”
Upon clicking ‘Close…” the position is closed.
You can also use the “Close by” option to close 2 opposite positions of the same symbol.
Right click on the symbol and select “New order”
To send a buy order click Buy, to send a sell order click Sell.
Stop Loss is used for minimizing losses if the security price moves the wrong direction. Once a position becomes profitable, its Stop Loss can be manually moved to a break-even level. A Trailing Stop automates this process. This tool is especially useful during a strong unidirectional price movement or when it is impossible to monitor the market continuously for some reason.
To set a trailing Stop, “Right click” on an open position and select “Trailing stop”
Select the desired value of a distance between the Stop Loss level and the current price. Use the "Set custom level" button to set Trailing Stop manually
For each open position or pending order only one Trailing Stop can be set.
CFDs have grown in popularity over the past few years and it is arguably becoming the preferred way to trade the financial markets. Some of the trading benefits of CFDs include no exchange charges and no stamp duty. Many of the inefficiencies of trading the underlying shares on an exchange are eliminated. The costs and delays of physical delivery of the shares, their registration and any holding or safe custody charges made by a broker are all avoided. The other major benefit of trading CFDs is that customers can trade using leverage on margin. CFDs trading means customers can trade a portfolio of shares, indices or commodities without having to tie up large amounts of capital. Moreover, any financial entitlements, such as dividends, are adjusted for in cash, directly to your account. However, any voting rights available to the holder of an equity share are not available to the holder of an equivalent CFD.
With CWG, you cannot lose more funds than you have available on your account.
Leverage is a concept that enables you to multiply your exposure to a financial instrument, without committing the whole capital necessary to own the physical instrument. When trading using Leverage you only need a fraction of the total value of your position, the rest is effectively lent to you. Profits and losses are based on the total size of the position, so the end result of a trade can be much larger than the initial outlay, in terms of profits or losses. CFDs are a form of leverage trading. The amount needed to open and maintain a leveraged trade is called “the margin”. Trading using leverage is sometimes called “margin trading”. In general, the term leverage is used when a small change in the price of the CFD is amplified into a bigger change, so that the CFD offers an “accelerated” return/loss.
Leverage of “10%” (or 1:10) means that if the price of the underlying asset changes by 1%, it is as if the price of the CFD changed by 10%. For example: a $100 balance leveraged by 1:10 increases to $1000. This allows you to buy up to $1000 worth of instruments. Information about the predefined leverage set per instrument can be found by clicking on the "Details" link next to the instrument's name in the platform's main screen.
This feature allows you to set a specific rate (price) at which your position will close, in case the price moves against you, in order to minimise your loss. Once this rate is reached or passed (as sometimes the price can ‘gap’ and move past the designated level), the Stop Order will be triggered and your position will be automatically closed. This feature is free of charge.
There is no guarantee your position will close at the exact price level you have specified, because of ‘slippage’. Slippage can occur due to volatile price movements. When the market reaches or surpasses the specific price you set for the position to close, the position will close at the next available price.
For example: ABC’s Buy/Sell rates are $500/$498.
You buy 10 shares CFDs of ABC and set a Stop Loss at the Sell rate of $450.
If ABC’s price suddenly drops from $498 to $400, the trade will close at $400 instead of $450, which was the Stop Loss level you initially set. Since the Stop is not guaranteed, when the market suddenly dropped and passed $450, the position was triggered to close at the next best available price which was $400.
This feature allows you to set a specific rate at which your position will close , in order to protect your profit. Once this rate is reached or passed, the position will automatically close. This feature is free of charge, but does not guarantee your position will close at the exact price level you specify.
For example: ABC’s Buy/Sell rates are $500/$498.
You buy 10 shares CFDs of ABC. You place a “Close at Profit Order” at the Sell rate of $550.
ABC’s Sell rate increases to $550 → the stop is triggered and the position closes at $550. If ABC’s Sell rate increases to a higher rate than $550, the position will be triggered to close at the next best available rate which surpasses your requested rate.
Take Profit and Stop Loss are additional orders attached to a position or a pending order. In fact, they are instructions for a broker to close a position when the price reaches a certain level. Take Profit is set to lock in profits when the price moves in a favourable direction. Stop Loss is intended for limiting losses if the price moves in an unfavourable direction.
Right click on the open position and select “Modify or Delete”
In order to open a new position, you must have a certain amount of funds in your trading account (your account’s equity must exceed the initial margin level requirement). To view the initial margin requirement for a specific instrument, go to the main screen of the trading platform, select the financial instrument and click on the Specification
The maintenance margin level is the amount of equity a customer needs to maintain in order to keep a position open. To view the maintenance margin requirement for a specific instrument, go to the main screen of the CWG trading platform, select the financial instrument and click on the “Details” link next to it.
Should the margin level in your account reach 100% of your initial margin, you will be granted a period of two business days to add more funds to your account or manage your positions to improve your Margin Level. However, if your equity falls below the required Maintenance Margin, even during these 2 business days, we will close some or all of your open positions. It is your responsibility to monitor your open positions at all times and ensure that you have sufficient funds in your account or close some or all of your open positions.
Trading at CWG is conducted by opening positions on financial instruments. Each instrument has a defined “Unit Amount”, which is the minimum size of trade or number of contracts/shares etc. to open a position. This information is located in the Specification link for each instrument, along with other features, such as margin requirements, leverage, trading hours, etc.
Price interest point (pip) measures the smallest unit of change in a financial instrument’s price. Typically, it refers to the last decimal or digit of the instrument price.
The price of GBP/USD is 1.42630 / 1.42650 (Sell/Buy). If the price of GBP/USD moves to 1.42670 / 1.42690, this is a movement of 0.00040 or 40 pips.
The price of Germany 30 is 12373.58 / 12374.43 (Sell/Buy). If the price of Germany 30 moves to 12373.88 / 12374.73, this is a movement of 0.30 or 30 pips.
A Trailing Stop Order is designed to protect profits by enabling a position to remain open as long as the price is moving in the right direction, but closing the trade as soon as the price changes direction by a specified number of pips.
Trailing Stop Order for Buy positions is used to protect profit as the instrument's price rises and limit losses when its price falls. Trailing Stop Orders for Sell positions is used to protect profit when the instrument's price falls and limit losses when its price rises. This feature is free of charge, but it is not guaranteed that your position will close at the exact price level you specify.
For example, you buy an instrument at a rate (price) of 1.5 where 1 pip = 0.1. You set a Trailing Stop Order at 5 pips therefore it sets a Stop Loss Order at the rate of 1.0. If the instrument's price increases in your favour to 2.2, then the Trailing Stop Order sets a Stop Loss Order at 1.7, therefore if the price then drops to 1.7 or below, the position will be automatically closed.
You can use 4 types of “Stop Orders”:
There are a number of risks involved in trading CFDs. These risks may lead to unfavourable financial outcomes for you. Monitoring of all risks associated with your trading is your responsibility.
You should not use our services unless you fully understand the financial products, and the benefits and risks associated with them. Some of the risks associated with using our CFD trading facilities include:
Markets are subject to many influences which may result in rapid price fluctuations. Because of this market volatility, there is no CFD transaction available via our trading platform that can be considered “risk free”. Given the potential levels of volatility in markets, it is recommended that you closely monitor your transactions at all times. For example: the value of investments denominated in foreign currencies will be impacted by both changes in the rates of exchange and market movement.
Given that you are dealing with us as a counterparty to every transaction, you will have an exposure to us in relation to each transaction. In all cases, you are reliant on our ability to meet our obligations to you under the terms of each transaction. This risk is sometimes described as counterparty risk.
Trading CFDs involves a high degree of leverage. You can outlay a relatively small initial margin which secures a significantly larger exposure to an underlying asset. The use of leverage magnifies the size of your trade, so your potential gain and your potential loss are equally magnified. You should closely monitor all of your open positions.
Please refer to the ‘Risk Disclosure’ document available on the CWG website for a detailed description of the risks involved in trading CFDs.
We offer charts that feature a wide range of indicators and drawing tools that can assist you in analysing trends and help you anticipate potential market movements. You can customise your chart view by choosing: (1) chart type, (2) price type and (3) time intervals. Use any combination of views, indicators and tools to follow instruments’ movements over time and adapt your trading strategy accordingly.
It is only possible to close a position (trade) during the relevant instrument’s trading hours. In addition, occasionally instruments are temporarily unavailable for trading when market events restrict price feeds, for example but not limited to: extreme volatility, illiquidity, underlying market suspensions, etc.
Dividends are the portion of corporate profits that are allocated to shareholders, and the cut-off date for share ownership in order to qualify for a dividend is known as ex-dividend date.
At CWG you trade CFDs on equities, therefore, you do not actually own the share itself. If you have an equity or ETF CFD position open on the ex-dividend date, an adjustment will be made to your account in respect of the dividend paid on the underlying market. If you hold a buy position you will receive the dividend as a positive adjustment to your account. However, if you hold a sell position there will be a negative adjustment. Please note that voting rights are not acquired with equity CFDs.
A corporate action is an event initiated by a public company that affects the shares/equities issued by the company. For example:
Dividend - A portion of corporate profits that are allocated to shareholders. When a dividend is paid, the value of the share drops.
Spinoff - An independent company is created through the distribution of new shares of the parent company. The parent company’s shares will lose value following a spinoff, and shareholders receive equivalent shares of the new company as compensation.
Rights Issue - Existing shareholders are offered a right to purchase additional shares of the company at a discount. This usually lowers the price of the company’s share.
Stock Split - Increasing the number of outstanding shares by dividing each share, while the market cap remains the same. Share value decreases, as number of shares increases.
As you do not own the physical share/equity when trading CFDs, you neither acquire voting rights, nor any rights under a rights issue or similar event such as stock split, etc.
Therefore, in order to ensure that there is no material impact to your open position(s), following an increase/decrease in the company’s share price, CWG will automatically add to/subtract from your balance the amount you would have incurred as an additional loss/profit (depending on your position’s direction). This is referred to as an ‘Adjustment’.
Occasionally instruments are temporarily unavailable for trading when market events restrict price feeds, for example but not limited to: extreme volatility, illiquidity, underlying market suspensions, etc.
Instruments that are based on a futures contract either have an expiry date or a rollover date.
The spread can be calculated by subtracting the sell price from the buy price of the instrument, and can change whilst your position is open. CWG is compensated for its services through the "market spread". For example, when trading EUR/USD, if the buy rate is 1.3128 and the sell rate would be 1.3126, and the market spread would be 2 pips. While some instruments have a fixed spread, others have a dynamic spread, which is constantly adjusted according to the market spread.
Useful instrument information can be found in the “Specification” tab for each instrument on the trading platform. These details may change from time to time, therefore please ensure you verify the information before trading (any change will only affect new positions).
CWG offers CFDs on over 200 financial instruments, including Forex, Indices, Commodities, Futures and Options.
Shares - also known as stocks or equities, represent units into which a company’s capital is divided for investment and ownership purposes. When trading CFD Shares, you would enjoy all the benefits of having an interest in the price movement of the share, without having to physically own it.
Forex - is the foreign exchange market for trading currencies. When referring to CFD Forex trading, we refer to the exchange of one currency for another at an agreed exchange price. In order to conduct foreign trade and business, currencies need to be exchanged, therefore it is no surprise that the Forex market is the largest market in the world. At CWG, you can trade CFDs on some of the world's most popular FX (Forex) pairs.
Indices - a stock index is a statistic that reflects the composite value of a group of stocks. The stocks listed within an index bear similar characteristics such as trading on the same stock exchange, being in the same industry, having comparable market capitalisations, etc. World-leading Indices are available for trading through CFDs at CWG.
Commodities - are hard assets ranging from wheat to gold to oil, and as there are so many, they are grouped together in three major categories: agriculture, energy and metals. Commodities are traded by dealers on an open exchange. That means that the prices change every day. Commodities futures are an agreement to buy or sell a commodity at a specific date in the future, at a specific price. Just like the price of bananas at the grocery store, the prices of commodities change on a weekly or even daily basis. The world’s key commodities are available for trading through CFDs at CWG.
Futures - are derivative financial contracts that obligate the parties to transact an asset at a predetermined future date and price. Here, the buyer must purchase, or the seller must sell the underlying asset at the set price, regardless of the current market price at the expiration date. Underlying assets include physical commodities or other financial instruments. Futures contracts detail the quantity of the underlying asset and are standardized to facilitate trading on a futures exchange. At CWG, you have access to all Major Futures Exchanges.
Options - are contracts through which a seller gives the buyer the right, but not the obligation, to buy or sell a specified number of units of the underlying asset at a predetermined price (“Strike Price”) within a set time period (by a stated expiry date). The buyer has an option to buy (“Call”) or sell (“Put”) the underlying asset. The factors that determine the price of an Option include, amongst others: the difference between the current price and the strike price. At CWG, you can trade options on futures at various strike prices that are listed.
Please note that the leverage and margin data as well as the availability of the instruments mentioned above may vary depending on your region.