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CFDs
Stock Indices
Why Trade Global Indices through PCM?
- Re-Quotes** on all index products, giving you fast, efficient trade execution without expensive re-quotes.
- Competitive Pricing: Competitive spreads enable you to gain exposure to global markets.
- No Commission: Trade commission free on all index products at PCM unlike other markets. *
- Generous Leverage: Generous leverage on all products that are clearly detailed on the PCM Trade Station II.
- Benefit from Dividends: Hold a long position overnight and receive dividend payments
- Hedging Capability: You can go long or short in a single index trade.
Trading Indices on Lot Based System
PCM utilises a "lot-based" trading system. This simply means that all PCM products are aggregated into standardized trade sizes. These sizes generally replicate the underlying reference instrument (the futures or cash instrument) or are a fraction of that figure. This simplifies trading by allowing clients to trade in lot increments, and also provides a price for each lot size rather than averaging open and close prices when multiple positions are taken in the same instrument.
The lot size for all indices is in fact one contract (i.e., 1 US 30, 1 UK 100, etc). However, in order to effectively reflect the movement and profit/loss implications of their underlying futures, PCM has established a minimum/incremental trade size as detailed on page 3.
The lot size for all indices is in fact one contract (i.e., 1 US 30, 1 UK 100, etc). However, in order to effectively reflect the movement and profit/loss implications of their underlying futures, PCM has established a minimum/incremental trade size as detailed on page 3.
Trading Indices on Margin
No deficit balances on your account. It is PCM's policy to credit accounts to a zero balance when deficit balances occur as a result of trading.
Financing Explained
All open positions at 5 p.m. (New York time) are rolled forward to the next trading day. If you hold a long (buy) position then you will be charged financing (LIBOR +3%) to roll the position, and if you are short you may receive financing (LIBOR -3%). For further details, please review product guide here.
Please note that the Roll S and Roll B displayed in the dealing rates are the costs per contract. Since such is the case, the client will pay or earn whatever the charge is, multiplied by the size of the position the client is holding.
Example:
Client is long 10 US 30. Current Roll B is -$0.88 (as displayed in the dealing rates window). Assuming the client is a holder of this position through 5 p.m. (New York time), they will be assessed a charge of $8.80 for that particular trading day.
* PCM is compensated by a mark-up, which is automatically added to the spreads it receives from its liquidity providers, PCM may also receive compensation for order flow from its liquidity providers. PCM does not charge commissions on standard accounts, however, commission charges may apply for certain classes of non-standard accounts such as Active Trader.
Foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose.
** Re-quotes occur when a trader makes an order at a specific price, but the order is rejected by a trading desk, and the trader is given a new price to accept or reject. Re-quotes can slow down your trading. PCM cannot re-quote forex orders because those orders operate on straight through processing. PCM also maintains a no re-quote policy for indices, metals, and oil, although those orders do not operate on straight through processing. Orders are executed at the best price available within the trader's parameters, subject to market liquidity at the time.
Please note that the Roll S and Roll B displayed in the dealing rates are the costs per contract. Since such is the case, the client will pay or earn whatever the charge is, multiplied by the size of the position the client is holding.
Example:
Client is long 10 US 30. Current Roll B is -$0.88 (as displayed in the dealing rates window). Assuming the client is a holder of this position through 5 p.m. (New York time), they will be assessed a charge of $8.80 for that particular trading day.
* PCM is compensated by a mark-up, which is automatically added to the spreads it receives from its liquidity providers, PCM may also receive compensation for order flow from its liquidity providers. PCM does not charge commissions on standard accounts, however, commission charges may apply for certain classes of non-standard accounts such as Active Trader.
Foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose.
** Re-quotes occur when a trader makes an order at a specific price, but the order is rejected by a trading desk, and the trader is given a new price to accept or reject. Re-quotes can slow down your trading. PCM cannot re-quote forex orders because those orders operate on straight through processing. PCM also maintains a no re-quote policy for indices, metals, and oil, although those orders do not operate on straight through processing. Orders are executed at the best price available within the trader's parameters, subject to market liquidity at the time.