CONTRACT FOR DIFFERENCE FAQ

A CFD is an agreement between two parties to settle, at the close of the contract, the difference between the opening and closing prices of the contract, multiplied by the number of underlying shares specified in the contract.

You may contact your Trading Representative or visit us at our office at 16 Collyer Quay, #15-00, Collyer Quay Centre, Singapore 049318.

A CFD account will be opened within 2 working days from the date you sign the CFD documents. A minimum cash deposit of S$2,000 is required before you can commence trading.

Subject to cash deposit and max credit limit, you can trade up to 10 times for STI component stocks and up to 3.3 or 5 times for non-STI component stocks.

The list of CFD counters available for CFD trading can be downloaded here.

Counter limit is set for each CFD counter per account which may be varied from time to time at the discretion of the management. Limits include $50K, $100K, $250K and $1M.

Both long and short positions apply.

Yes. Queuing is allowed for CFD trades. Once you have keyed in the order, you will see the order status as "Pending" in "Today's Orders".

You may withdraw cash from your CFD account, provided after the withdrawal, your margin percentage is above 100%.

This happens when the CFD trade is not accepted by Lim & Tan Securities.

Yes. Your CFD trades may be fully filled or partially filled. You will see the order status as "Filled" or "Partially Filled" respectively in "Today's Orders" during market hours .

Yes. You can withdraw a CFD trade that is not filled. For partially filled orders, you can only withdraw the balance quantity as reflected in "Today's Orders".

CFD trades will be closed out on a First-In-First-Out (FIFO) basis.

E.g.
Day 1 Buy 6 lots of DBS
Day 5 Buy 4 lots of DBS
Day 10 Sell 8 lots of DBS

The 6 lots bought on Day 1 would be squared off first, followed by the 2 lots bought on Day 5. Hence, you will hold a net 2 lots long DBS position.

Yes.

E.g.
Day 1 Sell 5 lots of DBS
Day 10 Buy 2 lots of DBS

Your client position will reflect a balance of 3 lots of DBS

It is the number of underlying shares in the contract multiplied by the price of the underlying security.

Brokerage tier for Online CFD Trades:

Contract Size	Brokerage Rates*	Effective Rates Less Mileage
Min. Brokerage	S$18	S$17.10
Up to S$20,000	0.22%	0.209%
> S$20,000 to S$50,000	0.18%	0.171%
> S$50,000	0.15%	0.1425%

Brokerage tier for CFD Trades placed through your Trading Representative:

Contract Size	Brokerage Rates*
Min. Brokerage	S$30
Up to S$20,000	0.35%
> S$20,000 to S$50,000	0.30%
> S$50,000	0.25%

• For opening a long position, the finance charge of 6.5% per annum will be levied. (The interest-free period will be up to T+2 market days.)
• For opening a short position, the finance charge of 4% per annum will be levied. (The interest-free period will be up to T+2 market days.)
• Accrued finance charge on outstanding positions will be realized on the last day of every month.
• For all closing positions, the brokerage charge will apply.

*Charges are subject to change from time to time.

LTS CFD has no expiry date. You may continue to hold your positions, subject to the meeting of margin requirements and corporate actions relating to the underlying securities.

Your CFD account will only be adjusted in respect with cash dividend attributable to the underlying security as follows:

1. If you hold a CFD long position^, LTS shall credit the net dividend to your CFD account
2. If you hold a CFD short position*, LTS shall debit the gross dividend from your CFD account

^ For dividend with scrip dividend scheme, you are not allowed to opt for scrip. Cash adjustments will be made.
* You are required to close off any open CFD short positions when the dividend attributable to the underlying security of any CFD is payable in a currency other than Singapore Dollars.

For all other corporate actions, you are required to close off any open CFD positions as follows:
Long CFD position: 3 market days before ex-date
Short CFD position: 7 market days before ex-date
Notwithstanding the foregoing, LTS reserves the right to close all open positions relating to the underlying security before the ex-date for any corporate actions.

If the underlying security is suspended, the following actions will be taken: For Long position, the CFD contract may be closed and you shall be required to pay the contract value in full. For Short position, the CFD contract may be closed and cash settled at a price which LTS shall determine.

If the underlying security is delisted, the CFD contract shall be closed and cash settled at a price which LTS shall determine.

A confirmation advice will be sent to you. In addition, you will receive a monthly statement reflecting all CFD transactions and fees charged to your CFD account.

8% per annum on a daily rest will be charged on a debit balance. You will be required to settle the debit balance in full, within 7 days of the occurrence of the debit balance, or latest, in the month following the occurrence of the debit balance.

You must maintain a margin percentage of at least 100%. No new positions are permitted unless additional cash is furnished to bring the margin percentage to not less than 100%.

The margin percentage is computed as follows:

Total Equity ----------------------------        x     100%          =      Margin Percentage         Initial Margin

Definition:
Total Equity = Ledger Balance* +/- Unrealised Profit/Loss - Accrued Finance Charge - Accrued Debit Interest
Initial Margin refers to the minimum amount required to open CFD positions.
* Ledger balance = Cash Deposit - Commission - Realised Finance Charge +/- Realised Credit/Debit Interest +/- Realised Profit/Loss

A margin call is made when the margin percentage falls below 100%.

You need to top-up your account within two market days from the date of the notice. For example, if the margin call is made on a Monday, you are required to top-up by Wednesday.

You will need to provide additional margin of cash to bring the margin percentage to not less than 100%.

LTS shall have absolute discretion and without further notice to you, liquidate the CFD account, to bring the margin percentage to not less than 100% if the margin requirement is not met within two market days of the margin call.

Force-selling shall take place when the margin percentage falls below 75%. LTS has the right to close off all or any outstanding CFD positions to bring the margin percentage to not less than 100%. In a volatile market, you are required to monitor your position closely and if you do not wish to be sold-out, you are required to top-up with cash by 12 p.m. on the force-selling day.

There is no processing fee to open a CFD account. Charges are maintenance fees for your Depository Agent (DA) Sub-Account on a quarterly basis and fees for share transfer between your Global Securities Account (GSA) and DA Sub-Account. The maintenance fees may be waived depending on the amount traded for that quarter. Charges by LTS include handling fees for dividend distribution.

Please click here to download a copy of the Schedule of Charges.

With effect from 18 June 2018, CFD accounts will be eligible for limtan Reward Programme or Link Rewards Programme.

The trading hours is between 8.30 am to 5.05 pm.

Please note that with effect from trade date 4 Nov 2008 (starting from evening 3 Nov 2008), overnight orders to initiate short positions will not be accepted. Orders to initiate short positions can be placed only during trading hours.

Overnight orders to close off outstanding positions and initiating of long positions can be placed through the Online Trading system for the next trading day from 5.12 pm onwards. If you are placing an overnight sell order to close off an outstanding long position, please ensure the quantity for your sell-to-close order is not more than that of the open buy position.

Note: Orders placed by clients will still be subject to acceptance by Lim & Tan Securities Pte Ltd. Orders placed at or near the end of trading hours may not be accepted and executed.

You can contact your Trading Representative, our Helpdesk on +65 6799 8188/180 or CFD Department on +65 64370120/147/165.