CFD TRADING WITH SONRAY CAPITAL MARKETS

CFDs & Margin Requirements

Sonray offers two versions of CFD trading.

One way of trading CFDs is via DMA (Direct Market Access) and the other is STP (Straight Through Processing) CFD trading. Both models allow you to trade LONG up to the top 300 ASX stocks by market cap and SHORT approx 250. This list can change subject to the liquidity providers and you will find any changes in the trading conditions section of the account page. We also provide LIVE ASX streaming data with market depth which costs $35.00 per month plus gst. This charge is by the ASX and is paid via Sonray to the ASX- it is not another commission charge.

Read more about CFDs at Sonray

The DMA CFD model

The DMA CFD model can only be traded during the open hours of the ASX and does not allow stop loss orders. You cannot place any limit/market orders outside of market hours This model suits the day trader, who sits in front of their screen during the market hours and trades in and out of their positions. There is no spread in the price of the CFD ie if BHP is 24.20/24.22 then that is the price you will get for CFD trading as well. You trade the ASX price of the respective stock and when selling or buying you can see your price and volume in the market queue and then in the course of sales. You participate in the after market close so long as your orders were place before 4pm. You do not participate in the pre open. Trading conditions can be found in the account page of your SonrayTrader and selecting CFD trading.

The STP CFD model

The STP CFD model allows you to place limit and stop loss orders outside of market hours. When you place an order to sell or buy, the underlying share price must be bid at your level before you can sell or offered at your level before you can buy. You cannot place AT MARKET orders outside of market hours. All CFD trading is based on the underlying share price and you will always see your trade in the course of sales of the respective stock. Sonray does not run a book and is not a market maker. All trades are straight through processing. For large volume stocks in the top 20, positions may be accumulated before sold/bought at market and a list of these stocks is found in trading conditions in the account section of the SonrayTrader.

This model of CFD trading has a spread of 0.05% of the share price deducted from the bid or added to the offer. You participate in the after market close only as long as your orders were placed before 4pm. You do not participate in the pre open. When you place a stop loss order it is treated as follows:- Your stop loss price is triggered say at $3.15 where you have a s/l order to sell at $3.15. If the next bid is $3.15 then your order is manually placed in the market with 0.5% slippage as a limit order at $3.14 as per ASX rules for limit orders. If,however, the next best bid following your trigger was at $3.05 then your order would be manually placed in the market as a limit order (as per ASX rules for limit order)with 0.5% slippage at $3.04.

Sonray offers a 24 hour desk from Monday morning through to Saturday morning, and has a dedicated Account Management team who are here to assist you.