ODL Markets CFD Information

Contracts for Difference


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No CFD trade allows the client to take delivery of any product.
All CFD trades are treated as a buy or sell regardless of whether the trade closes all or part of an existing CFD trade or opens a new trade.

CFDs do not entitle you to any voting rights in connection with the underlying share.

Financing
There is a daily financing charge associated with any open CFD position at the ODL daily close of business.

Long CFD positions will be charged financing and Short CFD positions will receive financing. The applicable interest rate will be Overnight Libor plus or minus the ODL financing spread.

For a position held open over an ODL non business day in the relevant market financing will be applied for the amount of days till the next business day, i.e. open positions on a Friday with a Monday as the next business day will attract 3 days financing.
Financing will be credited or debited on the next ODL business day.

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Equities.
For full details please refer to MT Product List
MT Product List

Range -
UK 100 Single Shares
US S&P500, Nasdaq100, DowJones 30
Euro CAC 40, DAX 30

Hours -
ODLS trading hours are the same as the underlying exchange, currently these are:

UK Shares: 8.00am to 4.30pm London Time.
US Shares: 2.30pm to 9.00pm London Time.
European Shares: Please refer to the desk for European Exchanges.
Market spreads can be wide at the start and end of the trading session.
Order imbalances can cause some US stocks to have delayed openings.

Initial Margin -
5% For Indices
10% For Equities

Financing -
UK CFDs are -2% / +2% around the £ overnight Libor rate.
Euro CFDs are -2% / +2% around the Euro overnight Libor rate.
USA CFDs are –2% / +2% around the $ overnight Libor rate.

Minimum Trade size -
The minimum trade size is 1 CFD (£1 per point)

Maximum Trade Size -
Is dependant on free equity in your account and liquidity.

Corporate Actions -
UK - Dividends are credited or debited from the clients account on ex-date in relation to the clients open position at the close of business on the day before ex-date. They are paid on long positions and debited on short positions at the net amount.
In the case of other corporate actions ODL Markets will either adjust open CFD positions by the appropriate amount or at ODL Markets discretion debit or credit a cash equivalent to the clients account. This will apply to open positions held on the close of business on the business day preceding the ex-event.

Dividend Rates -
Long Positions. Short Positions.
UK 90% of Gross 90% of Gross
France 85% of Gross 100% of Gross
Germany 85% of Gross 100% of Gross
Italy 85% of Gross 100% of Gross
USA 85% of Gross 100% of Gross

Shareholder Privileges –
With CFDs you don’t actually own the shares so you do not receive all the privileges normally associated with share ownership, such as voting or invitations to AGMs. Please refer to the above table relating to payment and receipt of dividends.

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UK Stocks
SETS stocks are generally more liquid and can be quoted immediately;
SEAQ stocks are generally less liquid and are quote based rather than an electronic order book. Due to this it may be necessary for ODLS to check the underlying market price before quoting or to work the order in the market.

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Indices
For full details please refer to MT Product List
MT Product List

Example -
UK 100 Index.

Value per Index point of 1 Index CFD -
UK 100 Index is £1

Hours -
UK 100 Index. 8.00am to 4.30pm London Time.

Initial Margin -
Indices 5%
Equities 10%

Financing-
UK Index CFDs are -2% / +2% around the £ overnight Libor rate.
Euro Index CFDs are -2% / +2% around the Euro overnight Libor rate.
USA Index CFDs are –2% / +2% around the $ overnight Libor rate.

Minimum Trade Size -
1 CFD (1 Share)

Maximum Trade Size –
Is dependant on free equity ion your account and liquidity.

Spread -
The UK 100 Index CFD is 2 points.

Corporate Actions -
For Indices that are subject to an ex-dividend adjustment, ODL Markets will make this adjustment to open CFD Index positions held at the close of business on the day before the ex-date. Clients will be credited for long positions and debited for short positions.

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Order Types
Market Order -
You ask for a price and deal on that quoted price.

Limit Order -
You place an order to buy below the market or sell above the market at a pre-determined level.

Stop Order -
You place an order to sell below or buy above the current market level when your level is traded or traded through. This is not a guaranteed price at the level set by the client but at a price where we deal or could have dealt in the market.

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Margin Calls
If payment of margin calls are not received ODL Markets may without notice in its absolute discretion close any, or all, in whole or in part of your open position. If you have a separate CFD account then this will be treated as a separate account for margin purposes and although your other account may be in credit this will not be cross-margined against your CFD account. You may call at any time to transfer money between your accounts to cover margin but it is not the responsibility of ODL Markets to monitor positions and /or margin on separate accounts.

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Intermediate Customers
To trade CFDs through ODL Markets will mean you will be classified as an ‘intermediate
customer’ for the purposes of the conduct of business rules of The Financial Services Authority (FSA).

As a consequence of this categorisation, certain protections afforded to private customers under the rules of the FSA will not apply:

1. Best execution:
Our terms of business state that we do not owe you a duty of best execution. This could
mean, for example, that you do not get the best price theoretically obtainable in the market.

2. Custody:
Where assets of yours are given to us for safekeeping, we will have more flexibility over who holds those assets, we are not obliged to explain the effects of pooling of assets to you, we will have more flexibility in the manner in which statements are provided to you, and if your assets are used for stock-lending, we will have more flexibility in relation to provision of collateral and monitoring of exposure.

3. Investors Compensation Scheme:
You will also have no right of access to the Financial Ombudsman Scheme.

 

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