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KE CFD

Overview

The KE CFD product is offered by Maybank Kim Eng Singapore.

The KE CFD account will be opened and maintained with Maybank Kim Eng Securities Pte Ltd, a member of Singapore Exchange Securities Trading Limited.

Kim Eng Hong Kong provides customer service and administrative support.

Maybank Kim Eng Contracts for Difference (KE CFD) offer traders the ability to take leveraged exposure to either long or short equity positions, with only a small initial deposit. It allows you to participate in the price movements of the underlying share without the need for ownership.

CFD are traded on margin and the profits or losses are determined by the difference between the buy and the sell price. Use CFDs in an uptrend or downtrend market, and turn every opportunity into a bullish one.

Trade long and short from one account
Using a single account, you can go long - by buying low and selling higher - when you expect upward price movements, or sell short - by selling high and buying back lower - to take advantage of downward price movements.

You will get the convenience and flexibility to take advantage of any market trend without the need for a margin or scrip borrowing account.
Finance up to 10 times your cash deposit
KE CFD provides up to 10 times leverage for key component stocks. This means you need only put down a fraction of the total trade value to open long and short positions.
No expiry date
No expiry date. You will save on additional opening or closing commissions and other rollover costs, and you can hold them indefinitely.
Direct Market Access (DMA) Model
Compared to the market making CFD, KE CFD adopts a DMA model that reduces trading restrictions. With DMA, you can participate directly into the order book of the underlying Exchange. This allows for greater transparency since you can see the underlying exchange’s order book. The prices quoted for KE CFD are exactly the same as the underlying quotes on the stock exchanges.
Partake in Corporate Actions
KE CFD mirrors the corporate actions that take place in the underlying share. A long position will be entitled to dividends, rights issue etc.
Markets
KE CFD supports markets of Hong Kong, Singapore, US, UK, Australia, Japan, Taiwan, Korea and Malaysia. KE CFD offers DMA and provides live market feeds for all of the above markets. KE CFD market guides will provide you with important market information and the list of CFD counters available. For details, please click here

How it Works

Account Opening and Management
KE CFD account is applicable for Professional Investors or clients who have knowledge of derivatives including CFD.

To open a KE CFD account, a minimum deposit of S$3,000 or equivalent is required. You can use this deposit to open long or short positions. For details, please click here.
Browser-based trading platform with advanced trading features
The KE CFD Trader is browser based. Users can log on to the system from anywhere, at anytime. Apart from basic Buy/Sell orders, KE CFD Trader supports sophisticated order types – stop loss, take profit, trailing to assist you in your trading and help manage your risk. The platform also shows your marked-to-market portfolio; viewing profit or losses in real time.
Trade - place long or short order
Once you have a minimum deposit of S$3,000 deposited into your account, you can start trading. You are allowed to buy or short sell positions worth up to 10 times your deposit.
Margin call
Margin call happens when your account suffers losses and has insufficient money to support the open positions that you have.

If your margin utilisation is above 100% by the end of the trading day, you will be required to satisfy the margin call by either depositing funds or by reducing the existing open position.

Margin Utilisation = Initial Margin (IM) / Gross Liquidation Value (GLV)

If it is above 100%, you have 2 days to top up your account

If it is above 125%, you have 1 day to top up your account.

Your trading representative will begin force selling if you do not top up your account.
Corporate actions
KE CFD mirrors the corporate actions that take place in the underlying share.
eStatements
A statement will be sent to your email every day, regardless of whether you have made a trade or not. This statement will usually be sent in the evening, and it will provide details of trades that you have made the previous day.
Direct Market Access
KE CFD’s Direct Market Access (DMA) model puts all client trades directly through to the stock market. This means that a KE CFD trade will affect the price and volume of the underlying share.

The price and volume quoted on the KE CFD platform will always be the same as that of the underlying market. Our clients are always assured of 100% transparency. We do not show synthetic prices or impose additional spreads, and will not take positions against clients.

For details of KE CFD, please click here

System Requirements
Operating System Windows XP Professional or above
CPU Power Pentium 3500MHZ
Memory 256MB or above
Browser Internet Explorer 7.0 or above
Mozilla/Firefox 3.0 or above
Chrome 7.0
or above with JavaScript enabled
Internet Connection Broadband

Risks

Highly volatile
CFD are derivatives transactions which provide for adjustment between the parties based on the respective values or levels of certain assets or reference indices at the time of the contracts and at an agreed future time. The prices of contracts for differences and the underlying asset or reference indices may be highly volatile and may fluctuate over wide ranges. These contracts can only be settled in cash.
Losses may exceed initial deposit
CFD are leveraged transactions. An investor must deposit collateral, or "margin", with Maybank Kim Eng in order to transact. The investor may sustain large losses as well as gains in response to a small market movement because of high degree of leverage. The investor may sustain losses in excess of any cash and any other assets deposited as collateral with Maybank Kim Eng and may call upon at short notice to make additional substantial margin deposits or interest payments. In certain instances, the investor's position may be liquidated without his or her consent or notice.
No guarantee that loss will be limited
Under certain trading conditions it may be difficult or impossible to liquidate a position, even if the reference asset or index for a contract for difference is the price on an exchange.
Commissions and Charges
Before you trade, you should familiarise yourself with the details of all commissions and other charges for which you will be liable.
Not transacted on a regulated exchange
All CFD will be entered into with Maybank Kim Eng transacting as principal. They are not transacted on a regulated exchange, and the terms and conditions of CFD will be established solely by Maybank Kim Eng. The investor's rights and obligations under a CFD are not assignable or transferable to any person, and the transaction can only be closed out with Maybank Kim Eng during Maybank Kim Eng's normal trading hours.