Axis Trader offers CFDs via the Direct Market Access (DMA) model which facilitates orders flow directly onto the underlying market guaranteeing you true ASX prices every time you trade. This model results in real time execution, guaranteed market prices and allows you to participate in the order book and importantly the opening and closing stages of the market.
How it Works!
CFDs is similar to buying the actual underlying instrument using a loan, instead you are buying and selling the performance of a security using direct
market access (DMA). You could borrow $10,000 from a bank to buy shares. You would receive the returns from the shares, but you would pay interest on
the loan to the bank. CFDs combine this process in one single and simple transaction.
For example, if you want to buy $10,000 worth of Australian DMA CFDs you will have to deposit an initial margin of $1,000. You will then be allowed to
purchase $10,000 worth of Australian DMA CFDs (based on a 10% initial margin percentage). The full $10,000 value of your CFD position will be subject
to the underlying securities price performance. If you want to keep the CFD position overnight you must pay a funding charge on the total nominal value
of the position. Interest is calculated at a spread over or under the AxiTrader Base Rate. If a CFD position is not carried overnight you will pay no
funding charge, that is if you open and close a position on the same day in the same CFD you are not charged any funding.
As with the underlying securities, CFDs allow you to benefit from normal market price movements. Your open positions are valued every night at the close
of business prices. Profits or losses are credited / debited to your account each day. Adjustments relating to corporate actions, such as dividends,
bonus issues and reconstructions in respect of the underlying securities are also applied to your account should they occur. CFDs however, do not entitle
the holder to any voting rights or franking credits in connection with the underlying shares.
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