what is pip or a tick in forex

Pip/Tick/Point
A pip/tick/point are the general terms for the smallest
incremental move possible in any market quoted by
Capital CFDs. A pip move usually, but not always, also
represents a full ‘stake’ movement in your profit or
loss total. The most obvious exception is in UK equities
where a pip movement results in just a 1/10 stake
movement in your profit or loss. Clients should always
be aware of what the underlying stake or unit risk is for
all markets in which they wish to trade

what are Rolling Daily contracts

Rolling Daily contracts
Contracts that do not expire at the end of each day but
automatically roll to the next trading day. Overnight
financing is applied to rolling contracts

what are cfd indices

Indices
Indices are a customised basket of securities that track
a particular market or segment. Each index has its own
calculation methodology and its own specific process
in order to select particular securities. At Capital CFDs
you can trade on all of the major financial indices, such
as the Australian 200, UK 100, German 30, Wall Street
(US) and S&P 500.

stock Resistance level

Resistance level
A price level which is supposedly difficult for a particular
market to rise above.

Minimum Initial Margin Requirement

(Min)IMR – Minimum Initial Margin Requirement
The minimum amount of money required to open a new
trade in a particular contract.

what are derivative

Derivative
A security whose price is derived from an underlying
asset (e.g. a share, currency, commodity or index)
and may not give the holder any actual rights to the
underlying asset. A CFD is a derivative product.

what are derivative

Derivative
A security whose price is derived from an underlying
asset (e.g. a share, currency, commodity or index)
and may not give the holder any actual rights to the
underlying asset. A CFD is a derivative product.

leverage cfd trading

Gearing (or Leverage)
CFDs allows clients to buy or sell a financial product
with substantially less money than the actual full
market value of that financial product. The maximum
gearing allowed by Capital CFDs can be calculated by
dividing the full nominal value of a 1 unit trade in a
contract by the Min IMR. A position in a contract with
high gearing or leverage stands to make or lose a large
amount from a small percentage movement in the
underlying instrument.

what are forex trading markets

Currency/Forex/FX markets
The foreign exchange markets trade one state or
economic bloc’s currency versus another’s (commonly
called a cross rate). These markets are traded in ‘pairs’
of two separate currencies (i.e GBP/EUR is the Sterling
versus Euro currency pair). When a ‘Buy’ trade is made
in a currency pair the client is anticipating that the fist
quoted currency is going to rally versus the second.
Therefore if a client ‘Buys’ the EUR/YEN cross he wants
the Euro to rally versus the Yen.

CFD Slippage per contract

Gap (“gapping” or “slippage”)
Where a market moves directly from one correctly
quoted price to another, significantly different,
correctly quoted price or from one reasonably quoted
price by LCG to another reasonably quoted price by
LCG in relation to the size required by a client for
execution of an order. There can be many reasons for
gapping; economic figures, company announcements,
political events, natural disaster etc., but the effect is
that any fill on a stop-loss, limit or new order may be
subject to a ‘gap’ in the fill price from that requested
by the client in his/her order contract note.

In CFD what is Computer Generated Stop Level

(Max) CGSL –
(Maximum) Computer Generated Stop Level
This is the maximum margin from a client’s account that
our systems will use to allocate a stop loss on any newly
opened positions. In the event that a client has sufficient
funds on deposit to cover the CGSL the system will assign
a stop at 80% of the CGSL away from the opening price
of the trade. Otherwise the system will allocate a stop at
80% of the funds available in your account.

What are Futures contract

Futures contract
A futures contract is an agreement to conduct a
transaction at some specified time in the future where
the price is agreed now. For a CFD it means that the
expiry date is at some point in the future. Future
contracts on CFDs are cash settled so you will never
be required to actually deliver, or take delivery of, the
physical product.

What are Commodity Markets

Commodity markets
These are markets where raw or primary products
are exchanged (like gold and oil). These commodities
are traded on regulated exchanges, in which they are
bought and sold in standardised contract sizes

What are equities in CFD

Equities (shares, stocks)
Equities represent a share of ownership in a company.
Equities are traded via the share market, a public
market for the trading of company shares and
derivatives at an agreed price. A CFD on shares does
not give you all the ownership rights of the equivalent
number of shares represented by the CFD nor does it
give you, at any time, the right to require or request
delivery of those shares from LCG. You have no voting
rights over the shares represented by a CFD.

what is Commissions

Commissions
The charge that CFD brokers apply to each trade.
We charge commission as a percentage of a trade.
Our rates are very competitive eg 0.05% on the top
200 Australian stocks, with the minimum charge of $5

what is Dividend

Dividend
The part of a company’s profits distributed to
shareholders, usually on a regular basis. If you have
an open ‘Buy’ trade in a Rolling Daily CFD on an
equity that goes ex-Dividend you will be credited
with 80pc of the relevant dividend if you have an
open ‘Sell’ trade you will be debited 100pc of the
relevant dividend.

what are Bonds

The bond market is where participants buy and sell debt
securities. UK Gilts, German Bunds and US Treasuries are
all Bonds. Capital CFD quotes CFDs derived from the
underlying Futures markets of the relevant contracts

what is Stop loss Order

Stop loss Order

A pre-determined order to close an open position in
a contract at a given price should that contract reach
the price designated at some point in the future. An
open ‘Sell’ trade would have a ‘Buy’ stop above the
current quoted price and a ‘Buy’ trade would have a
Sell stop below the current quoted price. Stop losses are
mandatory and are generated by the trading system
but they can be amended by you (subject to availability
of sufficient ‘Trading Resources’ on your account). Stop
loss orders are not guaranteed. If a market ‘gaps’ your
stop loss may not be filled at the level you requested. In
this event we always endeavour to close your trade at
the best price reasonably achieva

IG markets vs CMC Markets review

For years i have IG Market CFD account always liked it as i found no other alternative, eventually decided to try CMC cfd account but was awed by its low standard of service. IG doesn't pay me any thing to write this review.

I personally didn't like CMC markets Market Maker platform but some may really like it, it could also be i got used to IG interface.

Other thing i found was with IG you have enough help and webinars on there site to learn more.

There is always a demo account in both IG and CMC to try it for free.

difference between CFD providers

BuzzNet Tags: cfd provider,margin,leverage,account

BuzzNet Tags: cfd provider

CFD Providers and Brokers Comparison – Australia
Below are the features of various CFD providers and there comparison
IG Markets

- Australian and International Shares - Indices - FX - Spot metals, energies and rates and bonds
- Direct market price
- 0.1% on buy and sell with a minimum of $1
- Browser based - news, charting and research available
- 5%: S&P20 - 10%: Other
- +/- 3% of relevant interbank or central bank cash rate
- Available at one time charge from 0.3%
- Professional dealer platform available. - Day traders special offer.
E-Trade CFD

- Australian Share top 500
- Direct market price
- "Standard" rates: Greater of A$17.50 or 0.175% of contract value executed in the month
- Browser based - news, charting and research available - Costs vary from 0-$79.90/month depending on trade volume
- From 5% for top 20 stocks
- +/- 3% of base rate which tracks RBA's interbank overnight cash rate
- To be clarified
- Professional brokerage rates
Macquarie CFDs

- 500+ ASX listed securities
- Direct market price
- Minimum of $10 then from 0.06% to 0.16%(of Contract value)depending on turnover.
- stand alone - web browser
- with GSL - from 1% - without GSL - from 5%
- +/- 2.5% RBA overnight cash rate
- standard stop loss - free. GSL - price quoted at time of order, from 0.20%
- Bank account security for your funds
Man Financial CFDs

- Australian Share top 500
- Direct market price
- Greater of $12.50 or 0.125% on buy and sell up to $10,000 face value,0.125% on value over $10,000
- Browser based - news, charting and research available - Volume based charging structure
- From 5%
- +/- 3% of base rate which tracks RBA's interbank overnight cash rate
To be comfirmed
- Frequent Traders Club
Marketech CFDs

- All ASX stocks - 11 Stock Indexes - 22 International Exchanges, 120 Currency Pairs
- Direct market price
- 0.1% over $10,000, flat $10 under $10,000
- Stand alone software - News headlines and charting available
- From 5%
- +/- 2% on RBA OCR
- Stop Loss and Stop entry orders
- Frequent trader discounts, interest paid on account funds above $10 000



GFT CFDs

ASX 500, global shares and indices, commodities, bonds, interest rates, FX
Market Maker
Shares: 0.10%, $10 minimum
Free standalone, web and mobile platforms. Free advanced charting. Commentary and analysis services.
From 5%
+/- 3% of LIBOR
Free stop loss, stop entry, trailing stops. GSL on some markets for add'l charge.
Free Dow Jones News (minimums apply). CFDs and spot FX from one platform. Auto risk-notifications. Price alarms.
 
First Prudential
Direct Market Access CFDs, ASX CFDs, Shares, FX, Futures and Options
Direct Market Price
Our standard commission rate for DMA CFDs ranged from 0.08% - 0.10%. Our standard commission for Shares and Warrants is 0.10%. (Minimums apply – DMA CFDs $10, Shares $15+gst and Warrants $15+gst). First Prudential Markets reward active traders with volume discounts.
webIRESS
We offer access to the most competitive DMA CFD margin rates from just 3%.
Long CFDs: Reserve Bank cash rate plus 2% - 4% Short CFDs: Reserve Bank cash rate minus 2% - 3%
No charge.
Largest range of Australian Share CFDs - over 2,000. Superior platform webIRESS enables you to trade Shares and DMA CFDs from one platform. FREE CFD Education & Trading Tools, including access to free Daily Market Commentary.

City Index Australia
Global Indices, FX, commodities, Australian & International Shares, treasuries, Interest rates, ETFs, options
Straight through pricing model
$10 or 0.1% on share CFDs, no commissions on all other instruments.
Web based, iPhone app, news & charting available no cost
From 0.5% (can be reduced further with orders aware)
+ / - 2% RBA overnight cash rate
All order types free other than, GSLO from 0.7%
Easy to use platform, trading insights, transparent pricing

IC Markets
Australian & International Shares, CFDS, Futures and Forex. CFD\\\'s on any instrument in the world including commodities and Indices.
Direct Market Price
0.8% min $10
stand alone software + web and mobile platforms. Research and trade ideas from world\\\'s biggest banks.
From 3%
- +/- 1.5% of relevant interbank or central bank cash rate
All order types available. stop loss, stop entry, stop if bid/ask, limit, etc.
Professional platform and rates available.

Capital CFDs Australia
Australian and International Shares, Indices, FX, Commodities, Interest Rates and Bonds.
Market Maker only.
We offer 0.05% commission on Australian share CFDs with a minimum charge of $5. With all the other CFDs, our costs are built into the spreads.
Browser based. Free charting package. A range of trading tools available including: a daily market comment, technical analysis, economic calendar, market data, planning tools and a market squawk.
From 3%.
Long positions: RFR* + 2% Short positions: RFR – 2% * RFR = Relevant Funding Rate
Automatic stop losses apply on every open position. These stop losses are not guaranteed.
Easy to use platform, tight spreads and low margin requirements, huge range of markets available to trade on, FREE demo account, a range of free educational tools.

MarketsPlus

CFDs ASX 300, UK Shares, Singapore Shares, Global Indices, Commodities, Interest Rates and FX
Direct Market Price & OTC
$10 minimum then 0.10%
MarketsPlus Pro Free Desktop. Free advanced charting and pattern recognition. Commentary and analysis services.
From 5%
+/- 3% of LIBOR
Free stop loss, stop entry, trailing stops.
Free Reueters News. CFDs and spot FX from one platform. Auto risk-notifications. Price Alerts. Experienced Sales Traders. BankWest Cash Account to mitigate counterparty risks. Low Leverage CFD series.

What are CFD

What are CFDs?

A contract for difference, or CFD, is simply an agreement between
two parties to pay the difference in price (of the contract) between
the time it is opened and the time at which it is closed. It is a
derivative instrument, which means that when you trade CFDs you
are trading an instrument whose price is based on an underlying
asset that you may already be familiar with. These assets may
include shares (or equities), sectors, commodities, indices or foreign
exchange (FX). Importantly, CFDs are an OTC, or over-the-counter,
product. This means that they are not traded on an exchange, and
that when you trade with CFD provider Markets they are the counterparty to
the transaction.
When you trade CFDs, you don’t actually own the underlying asset.
Instead, you are trading a contract whose value is determined in line
with the value of the underlying asset. The underlying asset could
be shares like Google or BHP Billiton, or it could be a commodity like
cocoa.