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1. What are CFDs?

A Contract for Difference (CFD) is an agreement between 2 parties to settle, at the close of the contract, any difference between the opening and closing prices of the contract multiplied by the number of units of the underlying asset specified in the CFD.

CFDs allow you to participate in the price movement of an underlying product without actually owning the asset. This can be done by fulfilling a minimum collateral requirement (known as margin) instead of the full contract value.

2. What is leverage?

Leverage is the ratio of

The amount of capital needed to
trade a stock in full


The amount of capital needed to
be put up as collateral

CFDs are Leveraged products traded on margin. For clients who wish to take advantage of price movements with minimum initial capital, UTRADE CFD offers leverage of up to 10X on key component stocks.

Note: UOB Kay Hian Private Limited (UOBKH) reserves the right to vary the required margin for the underlying securities and to limit each client’s trading limit without prior notice.


Customer A wishes to buy 10 lots of Singtel at $3.60. Singtel has a margin requirement of 10%.

Type of account

Amount of capital required to trade(excluding charges)

Cash account


CFD account


In this instance, Singtel has a leverage of 10:1.

3. What is the Initial Margin (IM)?

Initial Margin is the margin (collateral) that you must furnish in order to transact in a CFD position and is calculated as a percentage of the full contract value. Once an IM is lodged for a position, it will be marked to market based on the prevailing market prices of the underlying instrument and changes accordingly with the market’s movements.

4. What is Free Equity (FE)?

Free Equity is the surplus funds in the CFD account available for withdrawal or initiating of new positions.

5. What is Gross Liquidation Value (GLV)?

GLV is the total value of the CFD account if all the positions are sold at the current market price, less any transaction charges and adjustments. Essentially, GLV = IM + FE

6. When is a margin call made?

A margin call will be made intraday whenever the margin ratio of your account exceeds 100%. Margin ratio is calculated in the following manner:

Margin Ratio = IM/GLV x 100%

When Margin Ratio > 100%, you will have 2 business days to satisfy the margin call.
When Margin Ratio > 125%, you will have 1 business day to satisfy the margin call.
When Margin Ratio > 140%, we will force sell your open positions to bring the margin ratio below 100% again.

You will not be able to initiate a new position until you have satisfied your margin call requirements. Your trading representative will force sell your existing open positions if you fail to satisfy your margin calls within the stipulated timelines.

7. How do I know if there is a margin call?

All margin calls will be sent via emails. 

8. How do I meet my margin call?

You can choose to pay through one of the following ways:

- Cash or Cheque at our Head Office, 8 Anthony Road
- Cheque made payable to UOB Kay Hian Pte Ltd. (Please indicate your trading account number.)
- Telegraphic transfer

Please note that USD, SGD, HKD and AUD are accepted for payment. Payment processing is done on full trading days only.
9. What is the CFD tenure?

Each CFD contract has a contract period of up to 1 calendar month. On the 30th of every month, all open CFD contracts will be rollover. During rollover, the open CFD contracts will be automatically renewed based on the market closing price of the underlying investment product on the 30th of the calendar month. Unrealised profits or losses will be realised during the rollover. If the 30th is a public holiday or weekend, rollover price used will be of the last trading day. For the month of February, rollover will take place on the last day of the month. During rollover, commission fees are not charged to you for renewal of contracts.

For an example on rollover, please click here.
10. What do I need to do when my contract is rolled over?

You do not need to do anything. Contracts will be auto-renewed.

11. Can I do a Short Sell?

Yes, stocks indicated with a “Yes” in the Short Sell column with the CFD platforms are available for short sell.

12. Can I pay the contract value in full and take delivery of the underlying shares?

No. CFD is an over-the-counter (OTC) instrument, hence payment in full will not result in the physical delivery of the underlying shares.

13. Can I submit overnight orders?

Yes, overnight orders can be placed.

SG market

SG overnight orders can be placed after SGT 5.15pm on market trading days.

HK market
HK overnight orders can be placed after SGT 4.15pm on market trading days.

US market
US overnight orders can be placed after SGT 9.30am on market trading days.

AU market
AU overnight orders can be placed after SGT 2.15pm on market trading days.

MY market
MY overnight orders can be placed after SGT 5.15pm on market trading days.

Note: For SG and HK overnight orders, please take note that no orders can be placed from Saturday 6am to Monday 6:05am (SGT). Orders placed on stipulated period would be rejected.

14. What are the shares I can trade?

Please refer to the respective market’s counter list.

SGX counter list
US counter list
HKEX counter list
Bursa counter List
ASX counter List

15. What can I do to limit my risk when purchasing CFDs?

There are stop-loss functions available on the CFD platforms for you to set your risk parameters. Likewise, there are profit-taking functions within these platforms too.

*Please note that a stop loss does not guarantee that your position will close at the exact level you specify – if the market suddenly gaps beyond your stop level, it is possible that your position will be closed at a worse level than requested.

16. How do I apply for a CFD trading account?

Clients need to have a cash trading account with UOB Kay Hian Pte Ltd before they can apply for a CFD trading account. Speak with your Trading Representative or contact us. Please note there may be additional onboarding requirements for clients who wish to trade US CFDs.

17. Is there a minimum amount required before I can start trading CFDs?
Yes, the minimum amount to open a CFD Trading Account is S$3,000 equivalent.
18. What are the trading fees?
Country Commission Rate (Online) Minimum Commission (Online) Commission Rate (Offline) Minimum Commission (Offline) Financial
(rates per annum)
Monthly Charge for Live Price Feed (Level 1)
 Long Short
Singapore 0.25% SGD 25 0.25% SGD 40 4.5% 4% to 8% FREE
Hong Kong 0.32% HKD 150 0.32% HKD 200 4.5% 4% to 8% HKD 120
United States 0.22% USD 20 0.22% USD 30 4.5% 3% to 4% USD 3
Australia 0.20% AUD 15 0.50% AUD 50 5.5% 3% AUD 25
Malaysia 0.40% USD 20 0.70% USD 50 5.5% As low as 6% USD 1

*Applicable to non-promotional periods. Rates may be subject to change.

Commission fees include all foreign fees payable such as stamp duty and exchange fees.
All CFD trades will be settled in the traded currency. 
All commission charges will be subjected to 7% GST and are automatically deducted from your CFD account the following morning.

19. Are there any account maintenance fees?

No, there are no account maintenance fee.

20. Will my contracts be amalgamated if I trade the same security on the same day?

Yes.  All orders for the same counter, same action and on the same day will be amalgamated into one contract.

21. How do Contingent Orders work?

Contingent Orders can be used as protective stop loss or take profit orders. Once the Contingency Trigger prices attached to the orders are met, the Contingent Orders will be triggered and sent to queue.

Example 1:

Customer X has 10,000 Singtel shares bought at $3.60. He places a Contingent Limit Sell order (Trigger Price) at $3.70, and the Contingent Order price at $3.70.

Scenario A: When Singtel’s last done price reaches $3.70
Outcome A: Customer X’s order will be put to queue to sell at $3.70.

Scenario B: Singtel’s price hovers at the day high of $3.65
Outcome B: Customer X’s Contingent Limit Sell Order is not triggered and remains Good Till Cancel (GTC).

Example 2:

Customer Y has 10,000 Singtel shares bought at $3.60. He places a Contingent Limit Sell order (Trigger Price) at $3.50, and the Contingent Order price at $3.70.

Scenario C: Singtel’s price hovers at the day high of $3.65
Outcome C: The Contingent Limit Order is triggered as its criteria of $3.50 is already met. The order will then be queued at $3.70, if the order is not filled by end of the trading day, it will be purged from the system.

Example 3:

Customer Z has 10,000 Singtel shares bought at $3.60. He places a Contingent Limit Sell order (Trigger Price) at $3.70, and the Contingent Order price at $3.70. Singtel’s price hovers at the day high of $3.65. Customer Z decides to close his position at $3.65 manually, without cancelling the Contingent Limit Sell order.

Scenario D: Singtel’s price rose to $3.71 the following day
Outcome D: Customer Z has a new short position for 10,000 Singtel shares. This is because Contingent Orders are Good Till Cancel if user does not delete them and/or their trigger condition is not met. In this case, Customer Z has 0 Singtel shares after closing his position. However, since the Contingent Order to sell is not cancelled, the sell order is triggered and filled, leaving him with a new short position.

22. How do I know if my order is filled through the Order Pad on my trading system?

You may like to refer to the “RemVol” and “DoneVolTot” columns on the Order Pad on the trading system to view the exact quantity being filled.

Example A:
Customer places an order to purchase 10,000 Singtel shares at $3.60 with Singtel now trading at $3.62
The Order Pad will show the following when the order is placed on queue at $3.60:

RemVol DoneVolTot
10000 0

Example B:
In the event Singtel trades at $3.60 and the order was filled, the Order Pad will reflect the following:

RemVol DoneVolTot
0 10000

Example C:
A scenario where Singtel trades at $3.60 and the order partially filled, the Order Pad will reflect the following:

RemVol DoneVolTot
5000 5000
23. How do I execute orders when system encounters technical glitches?

You may contact your trading representatives or our customer services hotline at 65369338 to direct you to our central dealing to assist you in your trades.

24. Is CFD a Specified Investment Product (SIP)?

Yes, CFD is classified as an Unlisted SIP. CFDs are typically traded off exchange. As such, clients are to declare if they have the required knowledge or trading experience in CFDs through the Client Profile Form. MAS has introduced this requirement to safeguard clients’ interests. Brokers are now to assess that these clients have the necessary knowledge/experience to understand the risks, as well as features, of CFDs.

25. How can I proceed to open a CFD account if I do not fulfill the requirements set forth in the Client Profile Form?

An e-learning course, jointly developed by the Association of Banks in Singapore (ABS) and the Securities Association of Singapore (SAS), is available to test your proficiency on CFDs. After completing the e-learning course, clients are required to pass an online course review. A soft-copy certificate will then be generated. Kindly print and submit it with your UOB Kay Hian CFD account documents to open the CFD account.

To begin the course, log in to http://sips.abs.org.sg/

For a step-by-step guide on registering and completing the course, please click here.

26. If I am an existing CFD client, how can I gain access to the NYSE and NASDAQ market?

The following additional forms are to be submitted:
a) W-8BEN
b) NYSE Subscriber Agreement
c) NASDAQ Subscriber Agreement

27. How can I place US CFD trades?

Clients are able to place trades online using their existing CFD Login. Alternatively, you may contact your trading representatives or our customer services hotline at 65369338 to direct you to our central dealing to assist you in your trades.

28. Can I choose to settle my US, HK, AU or MY contracts in SGD?

No. At this moment, clients are required to ensure that there is sufficient foreign currencies in your CFD account for foreign market contracts in order to pay for the relevant brokerage and finance charges as shown below.


Foreign Market Contracts
USD US Contracts
HKD HK Contracts
AUD Australia Contracts
USD Malaysia Contracts


29. What currency will my portfolio valuation be in if I have both SGX and US trades?

Total portfolio will be valued in SGD.

  Total portfolio =

SGX portfolio in SGD


 NYSE/NASDAQ portfolio valued in
 SGD (based on in-house daily
 USD exchange rate)

30. Is there any imposed CFD trading limit?

Yes. The default CFD trading limit ceiling for all clients is set at S$200,000 or up to the maximum leverage factor of the counter based on your available cash in your CFD account, whichever is lower.

Example: If you have deposited cash of $10,000

The share initial margin requirement: 10% (10x leverage)
The share initial margin requirement: 20% (5x leverage)

If you wish to buy only those shares with margin requirement of 10% based on $10,000, you can only buy up to $10,000 X 10 times = $100,000 contract value. If you wish to buy only those shares with margin requirement of 20% based on $10,000, you can only buy up to $10,000 X 5 times = $50,000. If you would like to increase your trading limit, please contact your Trading Representative.

31. Will I be entitled to Corporate Actions on my CFD trades?

Yes, clients are entitled to the following Corporate Actions provided positions are held until Ex-Date:

  1. Dividends
  2. - Long positions are entitled to receive dividends
    - Do note the dividend amount will be debited from the CFD account balance for short positions

  3. Rights Issues for Long positions only. For short positions, clients may be required to close off existing positions before Ex-Date.
  4. Bonus Issues
  5. Stock Consolidation/Stock Split

To learn more about Bonus Issues, Stock Splits and Scrip Dividends, please click here.

32. I am locked out of my CFD trading platform. What should I do?

You can contact our Client Services at 6536 9338 for help. You can either

  1. Request for Client Services to unlock your account; or
  2. Request your password to be regenerated and mailed to you
33. Are there seminars available for me to learn more about trading CFDs?

We hold 2 types of seminars monthly in our UOB Kay Hian auditorium.

  1. CFD 101
  2. Navigating through UTRADE CFD Platform

Register via the UTRADE Seminar Registration page.

34. Is there any Product Information Sheet that provides more information on CFDs?

You can download the CFD Product Info Sheet here.

35. What are the Trading hours for CFDs in the different markets?


Exchange Market

Trading Hours

Trading Hours
(Singapore Time)
Trading Hours
(Singapore Time during daylight saving*)
Singapore SGX Pre-opening:
8.30am – 9.00am
9.00am – 5.00pm
5.00pm – 5.05pm
Hong Kong HKEX 9.30am – 12.00pm
1.00pm – 4.00pm
United States NYSE & NASDAQ 9.30am – 4.00pm (US Time) 10.30pm – 5.00am 9.30pm – 4.00am
Australia ASX 10am - 4pm 8.00am - 2.00pm 7.00am - 1.00pm
Malaysia Bursa

9.00am - 12.30pm

2.30pm - 5.00pm

*US Daylight Saving time begins each year at 2 a.m. on the second Sunday of March and ends at 2 a.m. on the first Sunday of November.

*Australia Daylight Saving time begins at 2am (AEST) on the first Sunday in October and ends at 2am (AEST) (which is 3am Australian Eastern Daylight Time) on the first Sunday in April.

36. What is the minimum contract size of CFDs?

UOB Kay Hian uses the Direct Market Access (DMA) for all CFD Trades hence contract size is dependent on the lot size that the underlying securities are traded in.

37. Can my CFD orders be partially filled?

Yes. Orders will continue to work in the market until it is either filled or cancelled. For Singapore market where orders are placed Good-for-The-Day ("GTD"), the balance orders will be cancelled at the end of the trading day after 5.10pm SGT.

38. Can I delete or amend my CFD orders?

Yes. If the order is not done, you can either delete or amend the CFD orders.

39. What will happen to my CFD position if the underlying securities are suspended?

If any of the CFD underlying securities ceases to be quoted on a relevant exchange, or are under halt/suspension, UOB Kay Hian may at its absolute discretion, elect to terminate the relevant CFD or vary the margin requirement for the CFD depending on the situation. UOB Kay Hian will determine the CFD Contract Value at its sole discretion upon termination.

40. What are the types of collateral acceptable and what are the payment modes available?

Only cash is accepted as collateral for CFDs at the moment.

41. What order types are available on UTRADE CFD?


Exchange Market

Order Types

Singapore SGX Limit Order
Hong Kong HKEX Limit Order
United States NYSE & NASDAQ Limit Order
Australia ASX Limit Order
Malaysia Bursa Limit Order

42. Is there a trading platform guide?

You can download the guide here.



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