Stocks Trading Conditions at Finotec
In the following table, you will find all relevant information regarding stocks traded via CFDs on the Finotec trading platform . Depending on the exchange on which the stock is traded (e.g. the NASDAQ, Euronext, or the London Stock Exchange) trading hours vary. Please not that leverage options offered by Finotec vary according to the stock you are trading. This table will also give you the spread offered for each traded share, as well as the minimum and maximum size of a CFD contract on those shares.
*spread: the difference between the bid and the ask price in terms of the base currency. Our spreads are among the lowest available.
** trading hours: GMT (EST=GMT – 5)
Interest and accrual rate for stock CFD
Since CFDs are traded on a margin basis (a sort of borrowed capital), long positions are subject to an interest rate for each day they are held. You will thus be charged a fee at the inter-bank offer rate for the currency in which the share is traded.
Dividends from stock CFD positions
For a long position on a stock CFD: clients receive 60% of the dividends.
For a short position on a stock CFD: clients pay 100% of the dividends.
For instance:
When buying 100 GOOG/USD, the client will receive 60% x 0.37456 x 100 = 22.47 USD
When selling 100 GOOG/USD, the client will pay 100% x 0.37456 x 100 = 37.46 USD
Rollovers
Rollover procedures apply to all open positions on CFD stocks on the last business day of the month (not Friday). Those positions are closed out at a middle rate between the BID and the ASK plus or minus swap points. During the rollover procedure, any profit or loss in the closed position (which were displayed as Opened P/L) are transferred to “Closed P/L.” The closed position is then reestablished at the middle rate between the BID and the ASK price and a new value date is set.
Market orders
When trading CFD on stocks, there is no guarantee on the order/limit function. This entails that if there is a gap in the market, the order/limit will be open at the first market rate following the price specified in the order/limit.
