CONTRACTS FOR DIFFERENCE

Contracts for Difference (CFDs) — are an investment tool that allows operating in the market not with specific shares, indexes, goods, and currency, but with contracts reflecting the price change of an underlying asset without owning the underlying instrument actually. A trader concludes a Contract for Difference at a certain price and the difference between this price and the transaction closing price is the trader`s net profit. 

Contracts for Difference are gaining in popularity and this type of trade is becoming increasingly preferred in financial markets. For this reason, the DAX100 Company offers its traders CFDs, so popular in the financial market nowadays. We provide our traders with the advantage of CDF trading with margin using leverage. CFD trading allows market participants to trade share portfolio, indices, and commodities without using large amounts of equity. With access to the DAX100 trading platform, the difficulty of CFD trading on the exchange is almost abolished. Major expenses and delays in the physical transfer of shares, registration as well as any charges for safe storage when using the broker`s services are cleared, saving your time and money.

Please note that all voting rights that arise when obtaining share ownership are not available to the owner of the closing contract.

EXAMPLE:

You decided to buy Google`s shares. Instead of buying 1,000 shares from a stockbroker, you buy 1,000 CFDs of the Google Company on the DAX100 platform. If Google's share price has fallen by €4, your loss will be €4,000. However, if the price of Google`s shares rises by €4, you will have a profit of €4,000, the same way as if you bought the actual shares.

Trading on the DAX100 platform is simple, transparent and does not contain any hidden commissions.

Buy and sell prices of all available instruments are displayed on the home page of the DAX100 online trading platform. When opening a purchase transaction, our powerful and simple trading platform allows you to add "Stop-loss order" or "Profit limit order" to protect your position and profit.

TRADING EXAMPLE

You signed in and placed €17,000 by credit card.

  • Equity: €17,000. (Deposits – Withdrawal + Profits and losses for open positions).
  • Profits and losses = €0. (Total profit and loss of all open positions, including daily premiums).
  • Available balance: €17,000. (Balance + Profits and losses for open positions − Initial margin).

You have decided that Apple`s shares are likely to fall in price soon and sell Apple`s shares. 

7:17 pm - you clicked "Sell" next to the Apple`s share icon on the home page. Suppose the Sell price is €100. 

YOUR CRITERIA:
  • A number of shares (CDFs): 2,000.
  • Close with profit: €90 (profit will be 2,000 х €10 = €20,000).
  • Close at loss: €105 (loss will be 2,000 х €5 = €10,000).
  • Total sale amount: 2,000 х €100 = €200,000.
  • Initial margin required for Apple`s shares is 5 %: €10,000.
  • Maintenance margin required to support Apple`s position is 2.5 %: €5,000.
YOUR POSITION NOW:
  • Profits and losses = 0 (normally Apple's share spread is $1, so the amount of profits and losses is €2,000).
  • Available balance after the selling of Apple`s shares: €7,000 (€17,000 – 5 % х €200,000 = €7,000).
  • "Equity": €17,000 (€17,000 + €0).

8:03 pm — price of Apple`s shares rose to €103.

  • Profits and losses: − €6,000 (2,000 х €100 − 2,000 х €103).
  • Available balance: €1,000 (€17,000 – 5 % х €200,000 − €6,000 = €1 000).
  • Equity: €1,000 (€17,000 − €6,000).

You decided to cut losses and buy Apple`s shares.

8:03 pm — Sell price in the market is €103. You lost €6,000 while trading.

  • Equity: €11,000.
  • Profits and losses: 0 (no open positions).
  •  Available balance: €11,000.

Open the position by clicking on the BUY/SELL button on the DAX100 trading platform display screen, then select the symbol (for example, GBP/USD) and volume (for example, 0.05), and then choose the next action - buy or sell this instrument.

Depending on the selected instrument, you must perform the following actions:

(Optionally) Set a limit (Close with a profit): enter the limit of the amount for which you want to buy/sell an instrument. This amount measures the maximum amount of profit you want to receive. The default value, normally, is 1 point higher/lower than your buying/selling rate.

(Optionally) Set a limit (Close at loss): enter the limit of the amount for which you want to buy/sell an instrument. This amount measures the maximum amount of loss that you can allow for the initial transaction. The default value, normally, is 1 point higher/lower than your buying/selling rate. Please note that after a favorable course change, you can ensure that the profit is fixed by means of manual limit setting ("Edit Position").

(Optionally) Limit order (Buying/Selling) at the rate: set the Buy/Sell price of the instrument when or if it corresponds to the price you specified. Set the course limit by selecting the corresponding check box for the order to set the limit (Buying/Selling), enter the desired order rate (from the current rate) and click the "BUY/SELL" button.

Example of opening a position

You signed in and placed €1,000 by credit card:

  • Balance: €1,000 (Deposits − Withdrawal + Profits and losses for closed positions)
  • Profits and losses = €0 (Total profit and losses of all open positions, including daily premiums).
  • Available balance: €1,000 (Balance + Profits and losses for open positions – Initial margin).
  • Equity: €1,000 (Balance + Profits and losses for open positions).
  • 1:00 pm — you pressed "Buy" gold traded at a price: Sell €1,199.65/Buy €1,200.35 per ounce.
YOUR CRITERIA:
  • A number of ounces: 10.
  • Close with a profit: €1,250 
  • Close at loss: €1,150.
  • Total purchase amount is: 10 х €1,200.35 = €12,003.50.

Maintenance margin required to support the positions of gold is 0.3 %: €36.01 

  • Profits and losses = 0. (The spread of gold is normally 50-70 cents, so your profits and losses amount to €70).
  • Available balance after buying of gold is €939.99 : €1,000 – [€12,003.50 : 200].
  • Equity: €1,000 (€1,000 + €0).
  • 2:15 pm — price of gold rose to $1,250.
  • Profits and losses: + €496.50 : (10 х €1,250 − 10 х €1,200.35).
  • Equity €1,496.50 : (€1,000 + €496.50).

2:15 pm — Your "Take Profit" order is executed and the position is closed. You earned €496.50 for the transaction.

Equity: €1,496.50.

Profits and losses: 0 (no open positions).

Available balance: €1,496.50.

Close the position by clicking on the red X button on the display screen of the DAX100 trading platform at the end of your position. After that, your position will be closed and the profit will be transferred to your current account.

LEVERAGE

Leverage is a mechanism by which the margin deposit of CFD controls an asset of a higher value, providing greater trading results and higher. Example: you placed €1,000 and your equity is €1,000. Leverage is 1:50. Then the amount you can trade is €1,000 х 50 = €50,000. The required bonds (margin deposits) are displayed on each pop-up window of trading transactions. Leverage is a mechanism used to multiply profits. However, leverage can also multiply the loss.

Please note that marginal requirements tend to increase in proportion to the value of the underlying trading asset.

WHAT IS "MARGIN CALL"?

Your margin is monitored in real time, giving you the advantage of being aware of your positions at any time. Maintenance margin level is the minimum amount of equity necessary to support an open position. In case your equity falls below the minimum amount, the DAX100 trading platform system automatically operates the Margin Call and closes all open positions until the equity on your account exceeds the requirement of maintenance margin minimum level. 

MARGIN CALL EXAMPLE

You signed in and placed €10,000 by credit card:

  • Equity: €10,000 (Deposits – Withdrawal + Profits and losses for open positions).
  • Available balance: €10,000 (Balance + Profits and losses for open positions – Initial margin).
  • Profits and losses = €0 (Total profit and losses of all open positions, including daily premiums).

10:20 am — You bought 200 shares of Google (CFDs) at the price of €540,00.

Total purchase amount is: 200 х €540 = €108,000.

Initial margin required for 200 shares of Google is 2 %: €2,160.

Maintenance margin required for 200 of Google is 1 %: €1,080.

In case your equity falls below €1,080 you will receive Margin Call. The DAX100 platform system closed up your open positions.

  • Equity: €10,000 (€10,000 + €0).
  • Available balance after buying the shares of the Google Company is: €7,840 (€10,000 – 2 % х €108,000).
  • Profits and losses = €0.

1:00 pm — the price of Google`s shares fell to €510.

  • "Equity" is €4,000 (−€6,000 + €10,000).
  • Available balance: €7,240 (€10,000 – 2 % х €108,000 + 200 х (€510 − €540)).
  • Profits and losses = −€6,000 (200 х €540 − 200 х €510).

1:15 pm — the price of Google`s shares fell to €495. You received Margin Call and the DAX100 platform system closed up your position.

  • Equity: €1,000 (−€9,000 + €10,000).
  • Available balance: €0 (€10,000 – 2 % х €118,000 + 200 х (€495 − 540 €)).
  • Profits and losses = −€9,000 (200 х €495 − 200 х €540).

You received Margin Call because your equity is €1,000, but and you need to have €1,080 to maintain an open position for 200 shares of Google. Therefore, the DAX100 trading platform closed up. Your current balance is:

  • Equity: €1,000.
  • Available balance: €1,000 (Deposits – Withdrawal + Profits and losses for open positions).
  • Profits and losses = €0 (no open positions).

INITIAL MARGIN

To open a new position your available equity on the account must exceed the trading requirement to the initial margin level. Margin levels vary depending on various financial instruments.

You can view the required general margin level at the bottom of the terminal (LEVEL: 40.00 %). Remember that your initial margin is constantly monitored in real time.

MAINTENANCE MARGIN LEVEL

To keep the new position open the equity on your account must exceed the overall level of the maintenance margin. Each financial instrument has its own requirements for the level of maintenance margin. The DAX100 trading platform system always displays the level of the maintenance margin for each individual instrument.

SECURITY FEATURES

To ensure your financial security the DAX100 trading platform system automatically closes positions on your behalf if no top-up margin is provided.

 

PURCHASE AND SALE AT MARKET PRICES

As a trader in the market, you can use the DAX100 trading platform to buy and sell CFDs at the current market price (at the midpoint of the price spread which is set for each individual instrument). The DAX100 Company offers the types of orders available on the trading platform and also provides limit orders to help you minimize risks.

STOP-LOSS ORDER (MAXIMUM LOSS)

Stop-loss order is a great means to protect you from huge losses if the price instrument (stocks, currencies, commodities or indices) moves against your position. Stop-loss order instructs the DAX100 trading platform to close the position when or if the instrument reaches a specified price. 

When the share price reaches the specified limit, the Stop-loss order becomes a market order. A market order immediately instructs the DAX100 trading platform to close the position at the best possible price. Nevertheless, keep in mind that in an unstable market you will not be able to get the exact price you expect, but it will be as close as possible.

Stop-loss orders can also be used to protect earnings per share, the price of which moves with your position. You can repeatedly drop the price to close the position. In this case, Stop-loss order will instruct the DAX100 trading platform to close the position if the price limit is reached.

TAKE PROFIT ORDER

Take profit order is a great means to protect your profit if the price of the instrument (stocks, currencies, commodities or indices) moves with your position. Take profit order will instruct the DAX100 trading platform to close the position when or if the instrument price reaches a specified price.

SHARES, EQUITY CFDs — APPLE, GOOGLE, NIKE, JP MORGAN, IBM, AND OTHERS

Equity CFDs on the DAX100 trading platform will allow you to trade CFDs around the world under the most actively traded shares. The contract value of the equity CFD on the DAX100 trading platform is quoted in cents. So, if the Apple`s CFD is trading at €98.56, then the value of one Apple`s contract is equal to €98.56. With the initial margin of 5%, you can get a leverage increasing twentyfold the access to the most actively traded shares, quoted on the world stock exchanges.

FOREX TRADING — EUR/USD, USD/JPY, AND OTHERS

You can trade the most popular international currency pairs on the DAX100 trading platform. Our powerful and innovative trading system will provide you more than 50 currency pairs with leverage. We offer leverage from 1:1 to 1:1,000. You can start trading with a minimum deposit of €100 to get a profit similar to the one you would get by investing €100 - €100,000. 

STOCK INDEX CFDs — S&P 500, DOW JONES AND OTHERS

You can trade the future value of the Stock Index CFDs in popular stock markets around the world using the DAX100 trading platform. The DAX100 Company offers the clients a wide range of bonuses for deposits and trading operations. The contract value of one stock index CFD is equal to the price specified in the index currency. For example, in the UK 100 contracts are trading at 6,750. Then the value of one CFD UK 100 CFD is £6,750. We offer traders fixed spreads between the buy price and sell price without any commissions! You can also get leverage from 1:1 to 1:1,000 for trading Indices of CFDs.

COMMODITY CFDs – GOLD, SILVER, OIL, NATURAL GAS AND OTHERS

Start trading the world key products using the DAX100 trading platform. With our fast and innovative trading system you will have an immediate access to the commodity market under CFDs. The contract value of one commodity CFD is equal to the price specified in the commodity value. For example, if gold CFD is trading at €1,200.50 then the value of one ounce of gold under CFD is equal to € 1,200.50. We offer more than 25 commodity pairs with leverage. You can increase the return on investment with the leverage of 1:1 to 1:1,000. That way, started the trade by investing only €100, you will get the results similar to these you would get by investing the equity of €100 - €100,000.

PRICING

All our clients have access to price surveys in real time in the market where the main instrument is traded. A small fixed corresponding premium is applied to the average market price while buying and selling in order to get the price indicated on the DAX100 platform.

ONLY SPREADS

Operating on the DAX100 trading platform you will never be charged any commission fees for making transactions unlike other providers of brokerage services that charge a commission fee for each transaction.

COMMISSION FEE

Open position maintenance after a certain time of day (approximately at 10:00 pm GMT (9:00 pm with daylight saving time)), as shown on the DAX100 trading platform display screen in the Details window, provides for your commissioning to the account of the DAX100 platform. This commission is deducted from your account and covers the profit/expenses connected with position funding.

The settlement day will come two days after the consummation of the transaction as the own-price account is operated within the next two working days (T + 2) after the trading day (after opening/closing the position). The settlement day is also called the "Enrollment Day".

EXCEPT WEDNESDAY

Note. Transactions opened on Wednesday as of 10:00 pm GMT (or as of 9:00 pm on daylight saving time), are charged for 2 extra nights (a total of 3) as the initial settlement date falling on Friday (T + 2) is postponed to the next business day (Monday). The same principle applies to one-day transactions ("overnight" transactions) opened 3 days before the official days off.

COMMISSION FOR INACTIVE ACCOUNT

Commission for inactive account equaled to €50 per month is charged from inactive accounts by the DAX100 trading platform. The account is considered to be inactive in the absence of trading operations for 3 months.

 

Thank you for opening an account with the DAX100 Company! We guarantee a safe and secure trade, so we need documents that certify your identity. To start working on our trading platform, you need to provide documents to the manager of the DAX100 Company.

When scanning documents we recommend using the following settings: 200 dots per inch, gray level (not color), JPEG file format, resolution of 24 bits.

Documents can also be photographed using a smartphone and uploaded by going to the Account Settings for Web Trader > Account Verification tab. 

You must provide the following data:

PUBLIC DOCUMENT WITH PHOTOGRAPHY

FULL NAME and date of birth of owner must be clearly visible. The document must have a valid expiration date. Passport and driver's license are also appropriate. The name in the document must correspond to the name in the application.

DOCUMENT FOR ADDRESS VERIFICATION

The address of residence must correspond to the address in the application. The documents to be accepted are the following: utility payments (for electricity, telephone, and water), bank statement, lease or mortgage agreements. Please note that we accept bills only of the three-month time limit. Make sure that your name, address and the name of the company issued the invoice are present in the document. They should be clearly visible.

Thanks to the DAX100 Company, you can see all dominant online funds transfer mechanisms using for Crediting and Withdrawal of funds which are determined by currency chosen by you during the placement process.

 

SAFE AND RELIABLE BANKING TRANSACTIONS

The DAX100 Company guarantees the customers secure and reliable options of banking transactions provided by a carefully selected network of trusted e-commerce partners and leading financial institutions around the world. Thereby, our customers can use the most popular means of online payment.

SAFE DEPOSIT TRANSACTIONS

The DAX100 Company trade center uses a 256-bit standard SSL banking protocol to protect user data. Seal of guarantee of site identity with AICPA WebTrust maintenance provides the best of all available e-commerce protection. In addition, the website is regularly checked to protect the user from identity theft and credit card fraud.

CREDIT/DEBIT CARDS

ACCOUNT REPLENISHMENT
  • Sign in to your account and press the Deposit button.
  • Enter the deposit amount and fill in the rest of the fields.
  • Press the Deposit button and after a few seconds the confirmation window will appear.

If you successfully deposit, the funds will be credited to your account in the DAX100 trading system.

After account replenishment, you will receive a confirmation by e-mail. 

BANK TRANSFER

ACCOUNT REPLENISHMENT
  • Sign in to your account and press the Deposit button.
  • Select the Bank Transfer menu item
  • Follow the instructions present on the screen, fill in the form and select the Deposit option.

After confirming the transfer, you can start trading (confirmation can take up to 5 business days).

PAYMENT PROCESS SUPPORT

Our customer support team is ready to help you with any questions you may encounter in order for you to carry out your trading operations easily. Our customer support service is open 24 hours a day, 5 days a week. Please do not hesitate to contact us with any questions. You have to provide the client's ID, name, surname, and address along with the detailed information on your request in order for us to deal with a matter quickly and effectively.

NOTE

Any funds that will be credited to your account must be sent and received in one name of the account holder. Funds sent by another person are not accepted.

As part of its commitment to the customer service in accordance with the highest quality standards, the DAX100 COMPANY will do its utmost to ensure the withdrawal requests to be processed quickly and efficiently. In order to protect against fraud, we can also request additional information or documents proving your identity before processing a withdrawal request (see below). We use advanced technologies in the field of information security and encryption for reliable protection of your financial transactions and information.

WITHDRAWAL PROCEDURE

Having open positions, you will not be able to withdraw all available funds. A certain minimum account balance is required as a supported margin. (Available balance – Maintenance margin) and Margin >= 1% = Maximum withdrawal account

Processing of withdrawal request may take up to five business days. There may be delays caused by the fault of third parties involved in the transfer of funds (for example, the issuing company of the credit card, the bank through which the transfer is made or the intermediary banks, the maximum payment period is up to 3 weeks).

  •  To complete the procedure print out the withdrawal request, sign it and send a copy of the signed request to withdrawals@dax100.org or fax it: +44-205-0586666.
  • After sending the request, the information is sent to us for processing. You will receive a confirmation by e-mail.

* Pay attention that before removing means, you have to verify the account. In certain cases the DAX100 company reserves the right to request additional documents.

** Funds will be transferred to you in the same way by which has been recharged. If you have deposited funds by means of the credit card, any sums will also be transfered to this credit card. The same way, if you have deposited funds by means of bank transfer, removal of means is also carried out back on your bank account.

WHY WAS THE WITHDRAWAL REQUEST REJECTED?

  •   Your account is not fully verified.
  • We did not receive a signed copy of the withdrawal request.
  •  The request form for fund withdrawal was not signed by you, we received it partially or it shows the date of the request, which was already rejected.
  •  We could not transfer funds to the bank / e-purse using the details provided by you or the requisites were not provided at all. 

COMMISSION FEE FOR WITHDRAWAL

The DAX100 Company does not charge any fees for fund withdrawal from the account. The requested amount will be fully transferred to your bank account, credit/debit card or e-purse. However, banks and/or intermediary banks may charge an additional transfer fee. We do not take any responsibility for such commission fees.

PAYMENT SUPPORT

Our customer support team is ready to help you with any questions you may encounter in order for you to carry out your trading operations easily 24 hours a day, 5 days a week. Please do not hesitate to contact us with any questions you encountered.

Сompany bonus program

  • The bonus is available only to the accounts which have undergone full verification. The client agrees that after any withdrawal of funds from the trading account, the bonus is cancelled in full.
  • The bonus of 100% can be added in full on the amount of the deposit up to 10 000 USD\EUR.
  • The company reserves the right for cancellation of a bonus of 100% without prevention in this connection it isn't strongly recommended to use a bonus in calculation of profitability of trade strategy. The company doesn't bear responsibility for any consequences of cancellation of a bonus, including Stop Out as the charged bonus is 100% property компании*.
  • Any profit got with use of this type of a bonus can be removed after carrying out a certain volume of commercial transactions.
  • If on the trading account of the Client there are no open transactions or if on the trading account of the Client there were no closed transactions during the last 30 calendar days, then 100% a bonus can be written off.
  • The client agrees that in case of detection of signs or suspicions on abuse of the bonus program, in the presence on the account of profit proportional to a deposit, the Company reserves the right to cancel a bonus and to correct the profit got with his use on the bonus sum size without prevention and an explanation of the reasons. The client recognizes possible risks of application of this point.
  • Conditions of a bonus action can be changed or added without prior notice.
  • The main language of the Agreement is English. In case of any discrepancies between the English-language version of the real terms of agreement and their translation, the English-language version is considered priority.
  • Working off of a bonus happens on a formula: X * 0.2 lots, where X = the total volume of the received bonuses.

* This point is directed to prevention of cases of fraud with bonus system, but its application doesn't mean that all accounts for which the company cancels the bonuses received earlier are recognized violated any rules as not in all cases perhaps unambiguously to define the fact of violation of the rules.
The probability of wrong cancellation of a bonus within fight against abuses of bonus system doesn't exceed 10%.

Trade credits (FTO)

The trade credits are termless and interest-free, and can be used as guarantee providing at transactions. An indispensable condition of receiving the trade credit is account replenishment by own means, at the same time the size of the credit can be up to 100% of the replenishment sum.


Conditions of the trade credits program 

  • The program is available to the following types of accounts: Gold, Platinum, Exclusive which have undergone full verification. 
  • The trade credit can be obtained on each replenishment * If on the trading account of the Client there are no open transactions or if on the trading account of the Client there were no closed transactions during the last 30 calendar days, then 100% a bonus can be written off.
  • The client agrees that in case of detection of signs or suspicions on abuse of the credit program, the Company reserves the right to cancel the credit and to correct the profit got with his use. The client recognizes possible risks of application of this point.
  • Conditions of the credit program can be changed or added without prior notice.
  • The trade loan according to the decision of the broker can be granted in case of the low level of a margin for a period of 7 calendar days. During the stipulated term the client undertakes to return the sum added in the company into the trading account. In case of a non-return of the means added by the company for maintenance of marginal level, on the expiration of the specified term, this sum is charged off the customer account without notice. 
  • After DAX100 increases your deposit by crediting, the profit and risks connected with trade are distributed by 50\50.
  • Except the situation connected with the low level of a margin, the credit DAX100 can possess as much as necessary, but at write-off of money from the account the Company will return itself the part of investments and a share of profit. Besides, DAX100 can suspend the program, having warned about it in 7 days.
  • The profit share belonging to DAX100 is equal:

0.50 x (Profit - Losses - the Commission - Overnight)
Profit - total profit on the closed and open positions for the entire period of participation in the program.
The commission - the sum of the paid commission.
Overnight - the amount of the removed payment for transfer of a position the next calendar day.
Losses – the sum of losses in the course of commission of trade operations.


Thus, a part of means on the account which belongs to DAX100 is the sum added to the client under the terms of crediting and a 50% share of profit (if the account profitable). All other money - yours. They can be removed at any time, after commission of the minimum volume of trade operations which is calculated by a formula: 


X * 0.1 lot, where X = the total volume of the received proceeds of credit (FTO)


DAX100 doesn't intend to enter you into credit debts at all. If the current rest on the account and the volume of trade operations corresponds to conditions of the program of crediting, all positions will automatically be closed, and the Company will take away the share from your account.
It is possible to leave the program at any time, at the same time will be charged off your account the deposit added by the Company all profit got in the course of trade taking into account losses + a penalty for the missed benefit.


* The decision on granting the trade credit is made by financial department of the Company.

DAX100 COMPANY: WE OFFER OUR CLIENTS MORE OPPORTUNITIES

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