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Leverage is the ratio of
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.
Example:
Customer A wishes to buy 100 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 | $36,000 |
| CFD account | $3,600 |
In this instance, Singtel has a leverage of 10:1.