What is a CFD?
CFD or Contract For Differences is in essence an agreement between the buyer and seller to exchange the difference in the current value of a share, currency, commodity or index and its value at the end of the contract. The leveraged derivative products allow investors to speculate on price movements without needing to own the underlying asset. This is because contracts for difference are traded on margin, and the profit/loss is determined by the difference between the buy and the sell price. Because contracts for difference trade on margin, investors only need a small proportion of the total value of a position to trade.
CFD vs. Other Derivatives
The CFD market most resembles the futures and options market, the major differences being:
Trading is done off-exchange with CFD brokers or market makers.
CFD contract is normally one to one with the underlying instrument.
Minimum contract sizes are small, so it’s possible to buy one share CFD, low entry threshold.
Easy to create new instruments, not restricted to exchange definitions or jurisdictional boundaries, very wide selection of underlying instruments can be traded.
Why Trade CFDs?
Small moves can be magnified further using leverage if compared to the actual underlined product, shares, futures, commodities, Index.
Compared to futures and equities the minimum contract size is small, meaning a minimal amount of money is needed to trade in them.
You can also use CFD trades to hedge against a physical shares exposure in your portfolio.
Profit from a falling market. CFDs allow you to profit from a stock or index that is falling in value.
Key Advantages of Trading CFDs With MIG BANK
Security, reliability and quality of a Swiss bank
- MIG BANK is a Swiss bank, fully regulated by FINMA and holding a Securities Dealer License
Unique fully transparent dealing model with price improvements
- We execute clients’ orders at the best market price obtainable
- This price is fully transparent and can be better than the price requested if market moves in favor of a client.
CFDs, Forex and Bullions on one trading platform
- Our MT4 based trading platform as well as web and mobile trading applications allow clients to trade multiple asset classes on one platform, anytime, anywhere.
No Swaps and low trading commissions
Automated execution of trades
Maximum number of trades during market hours is 25 lots and off market hours is 5 lots. Please see market hours for each CFD in the table below. You can place multiple orders of 25 lots each within intervals of 30 seconds between each order or, alternatively, you can request by phone an order of more than 25 lots and we will execute your order once you confirm the price offered for such an order.
In case a client sending multiple orders of 25 lots each without respecting the 30 second interval between each order, MIG BANK reserves the right to cancel such orders.
Automated trading is limited to 25 lots per trade. Please contact the Dealing Room (+4132 722 81 53) for a higher number of traded lots.
All CFD’s products have varying expiration times. All open CFDs on Futures positions will be closed at the bid/offer price on the expiry date. Positions will not be rolled over to the new contract. Please see the table below for details.
During the last trading day clients can not open new orders and all open orders will be closed at the end of the last trading day.
Please read MIG BANK General Conditions, which constitute an integral part of the Trading Conditions.