Rates and conditions

Margins

• The Stock and ETFs CFDs are offered under a number of groups with different margin requirements that depend on market capitalization, liquidity and volatility of the stock. For Stocks and ETFs of low risk, the applicable margins are only 10%, however they can reach 100% for highly risky assets.
• Due to the current market conditions, a number of financial authorities are announcing rule changes that affect short-selling of physical stocks. These rule changes are put in place to protect the integrity and quality of the securities market and strengthen investor confidence. As a consequence, the changes will affect the short-selling of related CFDs.

Dividends on CFD positions

• When dividends on the underlying share are paid, holders of long CFD positions will qualify for a proportional payout. Holders of short CFD positions will have to pay an amount equal to the full (gross) dividend paid on the underlying share.
• All cash dividends for CFD positions are settled on pay date. Cash dividends are booked on ex-date to reflect the market price movement on the ex-date, but the actual value of the payment is settled on pay date.
• Dividends on CFD positions are cash adjustments paid or debited by the market marker and not by the underlying company. Dividends paid on CFDs are not eligible for any preferential withholding tax rates sometimes associated with dividends paid on physical stocks and may therefore differ from the dividends payable on the underlying share.

Currency conversions

• Currency conversions of trading costs as well as profits and losses from trading activities are done using the prevailing close rate as of 17:00 New York time.