Contracts for Difference (CFDs)

The exciting introduction of CFDs stems from Royce Equity Management's policy of continuous innovation and improvement for the benefit of our customers. The combination of our experienced derivatives team and our state-of-the-art trading platform makes Royce one of the leaders in the CFD market here in ASEAN and near Asia.

Since their introduction in the UK in 1998 and Australia in 2002, CFDs have become one of the fastest growing financial products to enter the market place. The popularity of CFDs amongst both investors and traders is most likely due to their flexibility and simplicity when compared to other equity derivatives.

CFDs are an efficient means of trading shares, indices, commodities, and currencies with up to 400:1 leverage. We invite you to find out why Royce Equity Management is a leader in trading CFDs in our geographic Asian market. Institutional customers as well as Private Equity clients are encouraged to acquire more information. All trading is commission-free

CFDs Explained

In simple terms, CFDs are an agreement between two parties to exchange the difference between the entry and exit price of a financial instrument or security.

The "CFD", or "Contract for Difference", was developed to allow clients to receive all the benefits of owning a stock without having to physically own the stock itself. For example, instead of purchasing 1,000 shares of Microsoft from a stock broker, a client could instead buy a 10 lot of Microsoft on the GCI CFD trading platform. A $5 per share rise in the price of Microsoft would confer to the client a $5,000 profit, just as if the client had purchased the actual shares that are traded on the exchange.

CFDs have grown in popularity dramatically over the past few years, and we believe that this will increasingly be the preferred way to trade the financial markets as it rapidly catches on here in Asia

The other major benefit of trading a CFD is the fact that the client can trade on margin. CFD trading means clients can trade a full portfolio of Shares, indices, or commodities without having to tie up large amounts of capital. Using the example above, a client purchasing $50,000 worth of CFD Shares will only be asked for $2,500 margin.

CFD Performance

As with Shares, CFD investors benefit from normal market movements. Clients' open positions are valued in real time, with every tick of the market. Profits or losses similarly are credited to or debited from the clients account equity in real time.


Margin

Unlike physically purchasing stocks, clients only have to deposit approximately 5% of the value of the Shares. So, if you want to buy $50,000 worth of Shares, you only need to have $2,500 on deposit with Royce Equity Management


CFD Trading Details:CFD Trading Details:

Product Structure: Uniform Contracts
Lot Size: 100 shares on equities. Other product denominations differ
Margin Requirement: 5% on individual shares, 1% or less on other products
Spreads: CFD products trade on a bid / ask spread basis
Commissions: Zero (commission-free)
More Information: Contact Us



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