
A CFD is an agreement to exchange the price difference of a share between the time a contract is opened and the time its closed. CFDs are traded on leverage to give you more trading power, flexibility and opportunities.
CFD trading is very similar to normal share trading in two respects. You deal at the actual price of the share, and pay a commission which is calculated as a percentage of the value of the transaction.
When you open a position, however, you do not have to pay for the full value of the shares. Instead you put up a deposit, know as a margin. Margins start at 5% for Australian shares, this means you can trade up to 20 times your initial capital outlay and make more efficient use of your trading dollars.
With CFDs you can buy or sell at the quoted price, to profit from rising or falling markets. CFDs give you more trading flexibility and more opportunities.
CFDs can be used to trade an extremely wide range of financial products on a variety of global markets they are an easy way to start dealing on a number of global markets. For example, if you have an interest in shares, the level of Dow Jones, the price of oil and the exchange rate of the Australian dollar against the euro, you can deal on all of these markets with one CFD provider from one account.
Long Share CFD positions are adjusted to reflect cash dividends paid on the underlying share, as you would if you owned the physical share. However with a CFD you are not entitled to any voting rights or franking credits. Note that for short CFD position you account may be debited for any dividends.
CFDs are fast replacing traditional share dealing as the product of choice for flexible, cost-efficient trading. With FOX WORLD MARKET you can stay close to the market with transparent pricing on all the shares we cover.
Most of our new clients hear about us from their friends and family. We come highly recommend for outstanding professional service and value for money.
We give you great value for your trading dollar with powerful leverage, low commissions and some of the most competitive margin rates on the market. Trade with us from only $10 or 0.10% per trade and get fantastic commission rebates down to 0.04% for high volume traders.
Our Trading platform allows you to build a diverse, multi-product portfolio from one account - CFDs, FX, Shares, Futures and Options.
Trade more than 6,000 different CFDs and nearly 20 Index-tracking CFDs on 20 exchanges worldwide on a DMA or over-the-counter basis.
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