What is a Variation Margin?

CFDs are financial products derived from stocks and containing high leverage effects. They are an effective way to buy and sell stocks, indexes, and futures. The London Stock Exchange has a 200-year history. In 2000, the United Kingdom launched the British Stock CFDs. By June 2019, it was only about 19 years. The trading volume of the stock CFDs has accounted for the London Stock Exchange. 25% of the total. What kind of wealth opportunities can CFDs bring? First, domestic investors can easily access international markets and have trading positions in different markets. Second, overseas markets will provide better liquidity. Third, diversifying funds in different markets in different countries will not be unduly affected by adverse fluctuations from a single market. "

CFD

1. Trading advantages

The benefit of CFD trading is that customers can

I. T + 0 stock calculation method

In the T + 0 stock CFD, the stock is traded in RMB but settled in US dollars. The stock price changes by 0.01 as a unit, and the price of a unit is 100 RMB. The transaction is in units of 1 lot, and 1 lot is 10,000 shares. For example, if you buy 1 lot of 10 yuan RMB shares, you choose the 20 accompany leverage (5% margin) model.

Calculation of frozen guarantee amount

The order required is 1 lot of 10,000 shares X10 yuan stock price X5% = 5000RMB, because the investment company server is mostly registered in foreign countries to trade in US dollars, converted to US dollars at the exchange rate of 6.468 to 773.04USD.

2. Transaction fee calculation (usually 4.5 for the following orders, 1.5 for selling)

When placing an order, the handling fee is 1 lot, 10,000 shares X10 yuan, stock price X4.5 = 450RMB (converted into USD at 6.468 exchange rate is 69.57USD)

The selling fee is 1 lot of 10,000 shares X10 yuan stock price X1.5 = 150RMB at the time of selling (23.19USD converted into USD at the exchange rate of 6.468, and the minimum charge for investment companies is 50USD).

3. Profit and loss calculation

Calculated on the basis of a 10 yuan stock price change of 0.5RMB, 0.5RMB is 50 units equivalent to a profit and loss of 5000RMB (converted into US dollars at the exchange rate of 6.468 to 773.04USD).

Second, the calculation method of international spot gold and silver

Spot gold and silver transactions are settled in U.S. dollars with US dollars as the unit. One lot of gold and silver margin is fixed at 1000 USD. The general investment company's gold handling fee is 1 lot of 50 USD and the spread is 50 points equivalent to 50 USD. Silver has no handling fee. But there is a spread of 5 points, and the spread of one point is 100USD.

For example, the gold price of the American Stock Exchange is 1174USD, and the next gold transaction fee = 100USD, which is equivalent to a loss of 100USD after the account is placed.

For example, the price of silver on the American Stock Exchange is 12USD, the next silver transaction fee = 500USD, which is equivalent to a loss of 500USD after the account is placed.

There is a slight difference between a currency CFD and a commodity CFD:

1. Contract price

The currency CFD uses the spot market price as the settlement, and the spot market price at the time of the offset is used as the settlement.

CFDs in general

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