US Stock Contract for Difference Trading FAQ Daquan

Regarding CFD trading on US stocks, Doo Prime is similar tofxtmWhat are the common problems with foreign exchange and other platforms?

What kind of CFD products does Doo Prime offer?

Doo Prime offers a wide range of stocks, allowing clients to trade CFDs on the world's most important and influential companies, such as Apple, Facebook, Amazon, BP, and Google. Similar platforms such as fxtm Forex also offer a rich selection of US stocks.

What is the leverage of the CFD products?

The leverage offered by Doo Prime for stock CFDs is 25 times, which will be reduced to 12.5 times during the off-day period, much higher than the financing leverage provided by other securities companies for traders. Clients can make full use of account funds when trading stocks in Doo Prime, improving the efficiency of the use of funds.

When will dividends on CFD products be distributed?

The dividend payout time of the US stock CFD product is the 2nd working day after the ex-date in the dividend plan announced by the listed company, and will be directly distributed by Doo Prime to the MetaTrader 4 account where the customer actually holds the position.

What is the minimum number of trading lots for CFD products on US stocks?

The minimum number of contracts for difference (CFD) for US stocks is 1 lot.

Is there any overnight interest on CFD products? How to calculate overnight interest?

The overnight interest on CFD products on US stocks is charged at an annualized rate of 4% of the contract value actually held by the customer. The formula for calculating the overnight interest is as follows:

Lot size * Contract size * Market price * Long or short order overnight interest (4%) * Trading days/360 days

Example:

Buy 1 lot of Tesla stock CFD, the market price is $999, hold the overnight position for one day, + overnight interest + $1.11, the calculation method is as follows:

Lot Size (1) * Contract Size (10) * Market Price (999) * Long/Short Order Overnight Interest (4%) * Trading Days (1)/360 Days = 1.11

Are there any dividends for CFD products on US stocks?

US stock CFD products are dividend-based and will be calculated according to the actual contract size held by the customer. Doo Prime will charge 1% of the actual dividend fee as a handling fee.

Among them, bulls will receive dividends from listed companies, while bears will be deducted from the corresponding dividends. The calculation formula is as follows:

Long calculation formula: lot size * contract specification * dividend per share * (1-1%)

Short calculation formula: lot size * contract specification * dividend per share * (1 + 1%)

Example:

Customer holds a long position in one lot of Tesla stock CFD in Doo Prime. At this time, Tesla announced a cash dividend distribution plan of $1 per share. Doo Prime's Tesla CFD specification is 10 shares per lot. After deducting the dividend handling fee, the customer will receive $9.90.

Calculation formula: Lot size (1) * Contract size (10) * Dividend per share (1) * (1-1%) = 9.9

If the client holds a short position, $10.1 will be deducted.

Calculation formula: Lot size (1) * Contract specification (10) * Dividend per share (1) * (1 + 1%) = 10.1

All dividend calculations and total fees will be deducted from the client's trading account, which can be checked in the account's order history. Other trading platforms such as fxtm Forex will also provide similar details.