As the holder does not provide the full contract value a deposit needs to be paid to cover potential losses. This deposit varies but can be as low as 5% for some shares.

Corporate action

All corporate actions in the underlying instrument will be reflected. This includes dividends and share splits.

Financing

In the same way as there is a finance cost/benefit in holding an underlying instrument, this is also reflected in holding a CFD. Financing (interest) applies to positions that are held open overnight.

On long CFD positions your account will be debited (charged) interest in respect of each day that your position is held open, whereas your account will be credited with daily interest (i.e. you will receive interest) on open short CFD positions.

The rate of interest charged will depend on the notional value of the position, and the currency in which the trade is held. SharenetCFDs base the rate on SABOR and a premium of 2.5% calculated from this base depending on whether you are long or short. (The premium is added to the base rate to calculate interest charges on long positions, and subtracted from the base rate to calculate the rate of interest paid on short positions).

You will also earn interest on the cash surplus in your account which is calculated on a monthly basis (SABOR – 2%).

Commission

Monthly JSE royalty Fee for live prices

Advanced Charts

For access to world class technical analysis and charting built into our platform, simply activate “Advanced Charts” under the “account preferences” tab.

R300 per month (no cost if 4 transactions are conducted in the month)

Market Depth

For access to the best 5 bids and offers on a live basis, simply activate this option under the “account preferences” tab.

R20 per month (no cost if 1 transaction is conducted in the month)

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• Trading long or short.  This enables you to take a positive or negative view of the underlying share’s price movements, and therefore to be able to profit in both rising and falling markets.  It also allows for hedging action to protect long-term share holdings.
• Cost effectiveness.  Because no share certificates are issued, you do not have to pay safekeeping or custody fees, STRATE costs, investor protection levies and Securities Tax.
• Via leverage, you can control larger positions at a fraction of the costof actual share ownership.  Instead of having to pay the full value of the underlying contract up front, you need only deposit an initial margin – usually about 10% of the contract value.
• Profiting from corporate actions.  CFDs allow you to benefit from dividends, stock splits, and movements in and out of specific Index groups.
• Deal immediately at the market price.  There is no extra spread to pay when trading CFDs (as is the case with financial spread betting).  This means that deals can be negotiated immediately, without any wait for a spread to be established.

See the Frequently Asked Questions for more…

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Learn more about CFDs, our tutorial will teach you to:

• Understand the nature of CFDs
• Appreciate the advantages of CFDs compared to physical share trading
• Know how to go long and short on equity and index CFD trades
• Have an appreciation of the opportunities and dangers represented by leverage
• Be able to calculate the costs attached to CFD trading
• Understand a few basic CFD trading strategies
• Be familiar with the different CFD order types and their applications
• Know how to use stop loss orders to limit CFD trading losses

Complete the following and download the CFD Trading Tutorial

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