General Trading

Knowledge
Pt. 2
Training Content

General Trading Knowledge

Margin Requirement Cal.
PIPs Cal.
Indices Important Notes
Indices PIPs Cal.
CFD Shares Important Notes
CFD Shares Cal.
Swap
Margin Requirement
Margin Requirement – Contract Size
Margin Requirement Calculation

Contract size / Leverage = Margin requirement/lot

EURUSD
Contract size 100,000
Leverage 400
100,000 / 400 = 250USD margin requirement/lot
Example:
Mr. A deposits 1,000USD.
He trades EURUSD.
He able to open a maximum 4 lots position at the same time, it’s call “full margin”.
Situation based on leverage 400:
1 lot = 250USD margin requirement
0.1 lot = 25USD margin requirement
0.01 lot = 2.50USD margin requirement
PIPs Calculation

Example 1 ：
EURUSD = EUR (Base) / USD (Counter/Quote)
1 pip = Trading volume x 10USD = Value/pip
0.02 (Trading volume) x 10USD = 0.20USD/pip

Example 2 ：
AUDCAD = AUD (Base) / CAD (Counter/Quote)
1 pip = Trading volume x 10CAD = Value/pip
0.10 (Trading Volume) x 10CAD = 1CAD/pip
1CAD = 0.76USD (*Convert into USD as MT4 shows USD)
Indices Important Notes

1. Contract Size
2. Margin Currency
3. Market Trade Time
4. 3-days swap
5. Leverage 100:1
6. Margin requirement:
Indices price x 1% = Margin requirement/lot
Training Content

US30

6.05am – 4.15am
(GMT+8)
Training Content

HK50

9.16am – 12.00pm
1.00pm – 4.30pm
5.16pm – 12.59am
(GMT+8)
Indices PIPs Calculation

Example 1 ：
US30
1 pip = Trading volume x Contract size with Margin currency = Value/pip
0.10 (Trading volume) x 10USD (Contract size with Margin currency) = 1USD/pip

Example 2 ：
HK50
1 pip = Trading volume x Contract size with Margin currency = Value/pip
0.10 (Trading volume) x 50HKD (Contract size with Margin currency) = 5HKD/pip
5HKD = 0.65USD (*Convert into USD as MT4 shows USD)
CFD Shares Important Notes

1. Margin Currency
2. Market Trade Time
3. Minimum Trading Volume: 10.00 (10 shares); Maximum
Trading Volume: 500.00 (500 shares)
4. 3-days swap
5. Leverage 20:1
6. Margin Requirement:
Share price x 5% = Margin requirement/share
CFD Shares Important Notes

Share Dividend
Company income distribution
Adjustment calculation method:
Number of shares held x Dividend per share = Adjusted amount

Ex-Dividend
If you place an order on this day, you will no longer be entitled to the recently announced dividend

Stock Split or Mergers & Acquisitions (M&A)

Purchase = CFD prices will increase
Stock split = CFD prices will decrease
CFD Shares Important Notes

Apple, Inc.

9.33pm – 3.59am
(GMT+8)
 CFD Shares Important Notes

Bayerische
Motoren
Werke AG

3.03pm – 11.29pm
(GMT+8)
CFD Shares Calculation

Example 1:
#AAPL
1 share = Position open price – Position close price = (Value with margin currency)/share
273.17 (Position open price) – 270.00 (Position close price) = 3.17USD/share
Value/share x Position share volume = Total
3.17USD x 10.00 (Position share volume) = 31.70USD

Example 2:
#ADS
1 share = Position open price – Position close price = (Value with margin currency)/share
228.45 (Position open price) – 224.35 (Position close price) = 4.10EUR/share
Value/share x Position share volume = Total
4.10EUR x 50.00 (Position share volume) = 205EUR
*Convert into USD as MT4 shows USD
Swap

1. FOREX, Gold Futures and Spot Metals 3-days swap at Wednesday (Market
Watch).
2. Indices, Energies and CFD shares, 3-days swap at Friday (Market Watch).
3. Swap interest deduction time is based on the time 00:00 in Market Watch.
4. CFD shares swap type is percentage term; All other trading products swap type
are point term.
Swap

Point Term:
Swap point x How many nights x Trading Volume = Swap total
Example EURUSD:
Swap Point 1.7115
1.7115 x 1 x 1.00 = 1.71USD

Percentage Term:
Share volume x Swap percentage / 360 days x Share open price x how many nights = Swap total
Example #BAC:
Swap Percentage -2%
10 x -2/100 / 360 x 33.11 x 8 = 0.1471 = 0.15USD