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Your account will be opened when your application has been approved. Once necessary funds have been deposited, you are able to start trading with Impeo.
You can keep track of your trades by: - Telephone - You are able to place a trade by calling the Impeo trading desk.
- Online - we have a fully interactive real time trading platform offering you the opportunity to utilise advanced tools normally only available to professional City traders.
Below are just a few of the features of a CFD that you should be aware of when managing your acount.
Types of order
CFDs allow you to magnify your profit/loss potential, but you can put the brakes on losses by using one of our range of order types. Just click on the link below for further information.
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Financing
Financing is calculated on CFD positions held overnight. If you hold a long position, you pay financing whereas if you hold a short position, you receive the financing.
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Dividend adjustments and corporate actions
You'll receive dividend adjustments and many of the benefits of corporate actions from CFDs in the same way that you would if you held the full share, however you will not receive voting rights.
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Types of order
CFDs allow you to magnify your profit/loss potential, but you can put the brakes on losses by using one of our range of order types.
If you want to place an order to buy or sell at a better price than the currently prevailing market price...
If you want to sell below or buy above the market...
If you want to automatically close a position to ensure that losses do not get out of control...
If you want a guarantee that a position will be automatically closed to ensure that losses do not get out of control...
If you want to place an order that enables you to cap losses and achieve a profit target... If you want to place an order out of hours to be effected during Impeo opening hours...
There are some important considerations regarding orders which are outlined below. For further information please read our Terms and Conditions.
- Please note that all orders relating to CFDs are basis "Impeo Quote" / "Our Quote" and assumed to be Good Until Cancelled (GTC).
- With the exception of Guaranteed Stops, none of these orer types are guaranteed.
- Orders which are left to open a position are subject to normal credit procedures.
- If an order to open were to result in additional margin being required the trade may not be opened at the absolute discretion of Impeo.
- Equally stop loss orders may not be moved, at the absolute discretion of Impeo, if it were to result in a margin call.
- Stop loss orders are attached to a particular trade, so that if the trade is closed online or on the phone the stop loss is cancelled.
Limit Order
A limit order is an order to buy or sell at a better price than the currently prevailing market price e.g. an order to buy at a lower price than the current market price (possibly because you believe that this will be a good entry point and you may not be watching the market at the appropriate time). The limit order will be executed at the next available market price immediately after the order is triggered which means that any slippage improves the execution price.
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Stop Order
A Stop order is an instruction to buy or sell a market at a price which is worse than that prevailing at the time of placing the order. You can use a stop order to do the following:
- Open a new long position (Stop Buy)
- Close an existing long position to cap a loss (Stop Sell)
- Close an existing short position to cap a loss (Stop Buy)
- Open a new short position (Stop Sell)
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Stop Loss Order
A stop loss is a stop order directly linked to an open position, which will automatically close the position when it has reached a predefined value. They are an important tool to ensure that losses do not get out of control.
A stop loss order is set at a price which, when reached, automatically triggers a trade to close your position. The closing trade is executed at the next available price immediately after the order is triggered. This can be at the same, better or worse price than the specified level (the trigger level). In most cases, the order is executed at the same price as the stop loss level but it is possible that the execution price is at a worse level (known as slippage) and in cases of severe gapping the execution price may be at a substantially worse price.
Stop loss orders are triggered and executed on the basis of Impeo CFD prices (known as "basis our quote") and are assumed to be good until cancelled (GTC) unless otherwise specified.
There is no additional charge for using a stop loss.
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Guaranteed Stop Loss Order
If you feel that you need greater comfort than that afforded by a simple Stop Loss then you may be able to opt for a guaranteed stop loss. Guaranteed stop losses are not available on all instruments. As the name suggests a guaranteed stop loss guarantees that you will obtain your stop loss trigger value.
There is an additional charge for this type of order known as the guaranteed stop loss premium and there are minimum distances that orders must be placed away from the current price.
Example
Selling the Wall Street CFD with a guaranteed stop loss
You decide to sell the Wall Street CFD. An Impeo trader quotes you 8026 / 8032 and you sell 10 CFDs as a limited risk trade.
Your position is opened at 8026 - 4 = 8022(4 is the limited risk premium).
You decide to set your stop guaranteed at 8092 (which is 70 points away from your opening level).
Opening Trade
Price of Wall Street CFD: 8022
Number of CFDs: 10
Value of CFDs: $80,220.00
NTR Required (the maximum loss): $700.00
If the trade had been executed without a stop loss the NTR would have been 7.5% of the contract value - $6,016.50.
Later the same day following an unexpectedly good non-farm payrolls number, the Impeo price gaps higher to stand 8152/8158.
Your position is automatically closed at 8092.
Closing Trade
Price of Wall Street CFD: 8092
Number of CFDs: 10
Value of CFDs: $80,920.00
Closing Value of CFDs: $80,920.00
Opening Value of CFDs: $80,220.00
Overall Loss on Trade: $700
This is your maximum loss regardless of what happens to Impeo's quote.
Your profits are not limited by this guaranteed stop.
The loss without a guaranteed stop would be (8158 - 8022) x 10 = $1,360.00
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Linked Order
A Linked Order is a combination of two orders placed on a trade: a stop order and a limit order.
Should one be triggered, this will automatically cancel the other. Should you close the position, both orders will be cancelled.
Example
You decide to sell the Wall Street CFD.
An Impeo trader quotes you 10408/10414. You decide to sell 10 CFDs at 10408.
Opening Trade
Price of Wall Street CFD: 10408
Number of CFDs: 10
Value of CFDs: $104,080.00
NTR Required: $7,806.00
At the time of placing the order, you place:
- A Stop Loss at 10478
- A Linked Limit Order at 10338
Later the same day, the Wall Street has fallen to 10334/10340. Your Limit order is triggered and your position is automatically closed at 10338.
Your stop loss is cancelled as the limit has been triggered.
Closing Trade
Price of Wall Street CFD: 10338
Number of CFDs: 10
Value of CFDs: $103,380.00
Closing Value of CFDs: $103,380.00
Opening Value of CFDs: $104,080.00
Overall Profit on Trade: $700.00
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Out Of Hours Limit Order
You are able to place orders to open positions when the markets are closed:
You can use a stop order:
- Open a new long position (Stop Buy)
- Open a new short position (Stop Sell)
You can use a limit order to:
- Open a new long position (Limit Buy)
- Open a new short position (Limit Sell)
Your order will be placed during Impeo trading hours and executed at the next available market price immediately after the order is triggered which means that any slippage improves the execution price.
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Financing
A financing fee is calculated for CFD positions held overnight. Trades opened and closed the same day are exempt of this fee. Normally the fee is credited or debited the next trading day. If you hold a long position you pay the financing fee (similar to borrowing funds), and if you hold a short position you receive the financing fee.
In general all stocks and indices have a financing fee of LIBOR* +2.25% for long positions and LIBOR* -2.25% for short positions. You can find the financing fees as well as more information in the market information sheets for CFDs.
*LIBOR (London Interbank Offered Rate) is the overnight interest for every currency based on the British Banking Association 11am London fixing.
CFD financing spreads may vary from time to time.
Dividends and Corporate Events
Dividend adjustments Equity CFD Trades
A dividend adjustment is credited to long CFD positions and debited from short CFD positions held at the close of business on the day before the ex-dividend date. Payment is credited or debited to your account over the ex-dividend date.
(Currently, UK long CFD positions receive an adjustment of 90% of the gross dividend, UK short CFD positions pay an adjustment of 90% of the gross dividend. US long CFD positions receive an adjustment of 85% of the gross dividend, US short CFD positions pay 100% of the gross dividend. For European equity CFDs please call the dealing desk for further details).
Stock Index CFD Trades
FTSE 100 CFDs will be subject to a dividend adjustment for positions held at the close of business on the day before an ex-dividend date (usually, this applies to positions held at close of business on a Tuesday). This is to reflect the fact that the FTSE 100 Index will open on a lower level on this date as the constituent members go ex-dividend.
A dividend adjustment is credited to long CFD positions and debited from short CFD positions held at the close of business on the day before the ex-dividend date. Payment is credited or debited to your account over the ex-dividend date.
Sector CFD Trades
Sector CFDs will b e subject to dividend adjustments for positions held at the close of business on the day before an ex-dividend date (usually, this applies to positions held at close of business on a Tuesday). This is to reflect the fact that the Sector CFDs will open on a lower level on this date as the constituent members go ex-dividend.
A dividend adjustment is credited to long CFD positions and debited from short CFD positions held at the close of business on the day before the ex-dividend date. Payment is credited or debited to your account over the ex-dividend date.
Corporate Actions
Equity CFD Trades
In the event of a corporate action (e.g. rights issue, scrip issue, special dividend) Impeo will adjust open CFD positions by the appropriate amount to compensate for such action and make every effort to advise the client of this. Adjustments will apply to open CFD positions held at the close of business on the preceding business day to the "ex-event" date and will usually be booked to your account around this date.
Clients with long CFD positions may sometimes have the option whether they wish to participate in a corporate action such as a rights issue or entitlement. Clients with short CFD positions are not given the opportunity to decide and may be assigned a short position if the long holders elect to take up the corporate action.
For example: In the case of a "rights issue", the client may be given a CFD position in the "rights" which is proportional to his position in the underlying equity CFD. This may be closed out by the client or eventually converted into a new position in the underlying equity CFD at the rights price.
In the event that Impeo is unable to contact a client to whom this applies, Impeo may, at its discretion, take up the position, on behalf of the client, if this is advantageous for the client to do so, and subsequently close this position out at the then market price.
Sector CFD Trades
In the event of a corporate action, Impeo may, if appropriate, adjust open sector CFDs, to take account of any change to the underlying sector quoted price.
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