Maximus DealBookDealBook is a convenient, functional and versatile tool for Internet trading, which gives you instant access to world financial markets. Maximizing your effectiveness and your ability, DealBook is flexible enough to solve any trade mission. Being oriented to active traders, DealBook provides an opportunity to trade in different markets - commodities, currency and stock, using only one Software solution, in fact, with one screen. To do this, the major financial markets are presented in the form of CFD, which allows you to unify and simplify both the process of trade, and post-trade processes such as profit and loss.
What is CFD?CFD (Contracts For Difference, Contract-to-difference) - Derivative financial instruments (derivatives), which represents the agreement reached at the difference between the opening and closing price of the position under the contract on various financial assets. As a derivative instrument, CFD is useful primarily for speculation without actual delivery of the asset and registration of property rights. High liquidity CFD can at any time and in full to make a deal on the proposed financial instruments that it is sometimes difficult to do when trading real exchange contracts, as well as open as long and short positions.
Example of transaction with CFDSuppose you have 10,000 GBP, you want to invest in shares of British company ABC Plc, listed on the London Stock Exchange. Current stock price is 4 GBP: Buy:
2,500 х 4 GBP = 10,000 GBP
Commision:
2,500 shares х 4 GBP х 0.3% = 30 GBP
Stamp duty:
2,500 shares х 4 GBP х 0.5% = 50 GBP
Deal amount:
10,000 GBP + 30 GBP + 50 GBP = 10,080 GBP
After some time the stock price rises to 4.14 GBP, and you decide to sell it: Sell:
2,500 shares х 4.14 GBP = 10,350 GBP
Commision:
2,500 shares х 4 GBP х 0.3% = 31.05 GBP
Deal amount:
10,350 GBP - 31.05 GBP = 10,318.95 GBP
Profit/loss:
10,318.95 - 10,080 GBP = 238.95 GBP 2.39% on the initially invested 10,000 GBP
Now consider the scenario where those-same 10,000 GBP you invest in those shares the same British company ABC Plc, but using CFD. For example, margin requirements for CFD for a given stock is 5%, which means that your 10,000 GBP gives you the opportunity to open a position on 200,000 GBP: Buy:
50,000 CFD х 4 GBP = 200,000 GBP
Margin:
50,000 CFD х 4 GBP х 5% = 10,000 GBP
Commision:
50,000 CFD х 4 GBP х 0.3% = 600 GBP
Stamp duty:
0 GBP
Following that, the same scenario, the stock price rises to 4.14 GBP, and you decide to close the position: Sell:
50,000 CFD х 4.14 GBP = 207,000 GBP
Commision:
50,000 CFD х 4.14 GBP х 0.3% = 621 GBP
Deal amount:
10,350 GBP - 31.05 GBP = 10,318.95 GBP
Profit/loss:
50,000 CFD х (4.14 GBP - 4 GBP) - 600 GBP - 621 GBP = 5,779 GBP or 58% on the initially invested 10,000 GBP
Maximus Capital Marktes provides an opportunity to trade about 3,000 of financial instruments in the form of CFD with low collateral requirements via free, multi-functional software.
DealBook benefitsThe ability to earn both the growing and in a falling market
A wide range of markets available to trade
Trading with leverage - low requirements to ensure
Competitive commissions and interest rates
No stamp duty on stock trading UK
Flexibility in trading
Free, the best market software
Payment of dividends on the long positions
DealBook also includes a convenient web-based platform that does not require installation on your computer and running almost any operating system and any browser - Maximus DealBook Web.
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