Stock CFDs

CFDs on Stocks are subject to dividend adjustments.
When a company pays dividends to its shareholders, it is essentially reducing the value of the company by the amount of the dividend. This is reflected by a reduction of the share price at the market open on the ex-dividend date (the day that the company stock starts trading without the value of the dividend).

Holders of CFDs on Stocks do not own the underlying stock. However, they are impacted by reductions of share prices. Therefore, to ensure no impact on positions, a dividend adjustment is made before the market open on the trading accounts of clients who hold CFD positions on Stocks. The trading hours for each stock can be found in the table above.
Buy trades will receive an amount calculated as follows:
Dividend Adjustment = stock dividend declared x position size in shares

Sell trades will be charged an amount calculated as follows:
Dividend Adjustment = stock dividend declared x position size in shares

Due to new tax regulations under U.S. section 871 (m), non-US residents, holders of long positions on US equity derivatives (including CFDs) are taxed on dividend adjustments in the same way as non-US holders of the real US dividends. Particularly, in every dividend paid for an in-scope position, we calculate the dividend adjustment and deduct the 30% withholding rate (or less when a relevant treaty rate was applied to the account). Clients which are affected must fill in a W-8BEN form to be able to continue or start trading on the in-scope instruments.

Turbo Stocks are CFD products that have specific stocks as underlying and 200:1 leverage. The trading of Turbo Stocks begins at the start of the trading day of the underlying and ends at the end of the same day. This process then resumes the next day.

What is the margin requirement for Turbo Stocks?

Margin Requirement for Turbo Stock CFDs = [Lots*contract size* open price] / [Lowest of (Account Leverage, Symbol Leverage)]

As the formula above indicates, the leverage of the position is the lowest between your Account Leverage and the specific Symbol Leverage of what you’re trading.

Example 1: Client trades 10 lots of Turbo Amazon CFD at a 100 USD opening price, with USD account base currency, and account leverage of 100:1. At the same time, symbol leverage for Turbo Amazon CFD is 200.
Required margin for Turbo Amazon CFD position (Example 1) = (10*10*100) / 100 = $100

Example 2: Client trades 15 lots of Turbo Amazon CFD at a 100 USD opening price, with USD account base currency, and account leverage of 500:1. At the same time, symbol leverage for Turbo Amazon CFD is 200.
Required margin for Turbo Amazon CFD position (Example 2) = (15*10*100) / 200 = $75

You will be able to open and close positions at any time during the trading day (i.e. open a long Amazon position on the first tick of trading day and close the position 10 minutes later).