Over-the-counter assets, which include CFDs, are written out to any type of underlying asset if the pricing and settlement terms are clear to both parties (the seller and the buyer).
Types of CFD tools
Usually, CFDs on shares of famous brands are in demand. The quotes and codes of tolls (tickers) are the same as in the trading terminals of exchanges and Forex brokers where these securities were placed during an IPO.
Every exchange has its own index that consists of the securities of the country’s economy (“blue chips”) flagships, calculated by the method of the site. You can buy or sell an index using CFD contracts. The index value is comparative, analyzed during constant recalculation of prices in stock. Thus, index futures serve as the main asset that identifies the value and difference calculation for CFDs.
Futures on energy, as well as currency and bonds, can be bought as a contract of CFD. The type’s offer of the width of basic tools defining CFDs is limited to the offers of world exchanges and broker’s imagination.
CFDs, like any derivative contracts for shares (futures and options), are not eligible for payment under the law. The broker itself such as www.avatrade-review.com decides what to do in this case, so carefully read the terms of payment and dividend payments on the site and in the texts of the Agreement.
The general practice of such payments by the Forex dealer is as follows: if at the time of the cut-off the client was selling CFD on shares, the number of dividends would be withheld from the account and accrued – if CFD on shares were purchased.