MF Global

Why Trade CFDs?

Leverage

The key benefits to leveraging are:

The ability to potentially increase your returns
The ability to diversify your portfolio

When opening a CFD position, you only require a small percentage of the position value allowing you the ability to potentially increase your returns and diversify your portfolio. Below is an example of leveraging your portfolio and the potential for increased returns.

Opening your CFD Position:

CFDs - Leveraged trade		Traditional Trade with no Leverage
Buy Price	$5	Buy Price	$5
Margin required (3%)	$300	Inital Outlay	$10,000
Commission charge (to buy)	$10	Commission charge (to buy)	$25
Total Outlay	$310	Total Outlay	$10,025

Closing your CFD Position:

CFDs - Leveraged trade		Traditional Trade with no leverage
Sell Price	$5.20	Sell Price	$5.20
Gross profit/loss	$400	Gross profit/loss	$400
Total Commission charges (to buy and sell)	$20	Total Commission charges (to buy and sell)	$50
Overnight financing: 1 day	$2.08	Over night financing: 1 day	Zero
GST	Zero	GST	$5
Net profit/loss	$377.92	Net profit/loss	$345
Return On Investment (ROI)	122%	Return On Investment (ROI)	3%

With MF Global you have access to powerful leverage from as low as 3% margin for share CFDs, that's over 33% leverage.

Profit in falling markets - to hedge or go short

CFDs give you the ability to profit when the markets fall, as easily as when they rise. You can also hedge your long share positions in falling markets by shorting with CFDs.

CFDs provide you with more trading flexibility and give you more opportunities to profit.

It is just as easy to sell a CFD as it is to buy.

Going short means opening a position by selling with the aim of profiting in a falling market. Therefore, using CFDs you have the opportunity to profit from both rising and falling markets and you can also protect your long term share investments from short term market corrections.

Dividends

The "ex-dividend date" for listed security may be the first day where that security is traded without being entitled to a previously declared dividend.

CFDs pay dividends on the ex-dividend day for long positions. Conversely if you have a short position this will be deducted from your account on the ex-dividend day.


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