Over-the-counter CFDs
For experienced traders, over-the-counter contracts for difference (OTC CFDs) can be a powerful and flexible investment tool. You can use OTC CFDs to:

  • Take long and short positions on a wide selection of ASX-listed stocks.
  • Get extreme leverage, opening a position with an Initial Margin of as little as 5%.
  • Hedge your portfolio over the long and short term.

There’s no expiry date, no time decay, and you’ll never have to take delivery of the underlying securities. Plus, our direct market access system gives you the same transparency and liquidity as share trading.

Now you can also trade OTC CFDs on International markets including Hong Kong, Singapore, Japan and New Zealand

But OTC CFDs are not for everyone. You should read and consider the Product Disclosure Statement before you decide whether to invest.

If you’re already a CFD client > Click here to log in to the OTC CFD trading platform.

If you’re not yet a CFD client > Click here to register for a free trial of the CFD trading platform.

   
I can do that   

The strategy. On 26 June 2006, BlueScope Steel (ASX code: BSL) closed at its highest level in eight months. The next day it began to fall back. Chris formed the view that it was likely to fall further, and decided to use OTC CFDs to short sell the stock and benefit from his view.

How he did it. On 27 June 2006, Chris sold 3,000 BlueScope Steel OTC CFDs at $8.54 each.

The result. On 30 June 2006, Chris closed his short position, buying back 3,000 BlueScope Steel OTC CFDs at $7.95 each. After taking interest and commission into account, Chris earned a net profit of $1,713.95, giving him a return of 66.07% on his initial outlay. All in just four days.

Open Short Position
Sell Quantity 3,000
Price $8.54
Contract Value $25,620
Initial Margin $2,562
Brokerage $32.03
GST $0
Initial Outlay $2,594.03
Close Short Position
Buy Quantity 3,000
Price $7.95
Contract Value $23,850
Variation Margin/Profit or Loss $1,770
Brokerage $29.81
GST $0
Interest (paid to Chris by CommSec) $5.79
Profit (credit) $1,713.95
Return On Outlay 66.07%


Assumptions: Initial Margin calculated at 10% - Interest calculated at RBA Base Rate of 5.75%, minus margin of 3%.

This example is hypothetical and for illustrative purposes only. CommSec does not specifically recommend the stock used in this example and does not warrant that it will be available for OTC CFDs. Past performance is not indicative of future performance. OTC CFDs are speculative products that are highly leveraged and carry significantly greater risk than ungeared investments such as share trading; see the risk disclosure statement in the OTC CFD Product Disclosure Statement for details.

The information on this site has been prepared without taking account of the objectives, financial situation or needs of any particular individual. For this reason, any individual should, before acting on the information on this site, consider the appropriateness of the information, having regards to the individual’s objectives, financial situation and needs, and, if necessary, seek appropriate professional advice. The presence of a managed fund on this list should not be construed as a recommendation. No representation is given, warranty made or responsibility taken as to the appropriateness or performance of any of these funds.

   
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Why choose CommSec OTC CFDs?
1.Trade CFDs on around 500 stocks
2.Buy and sell at real ASX prices, with direct market access.
3.Short sell on a range of approved securities.
4.Pay an Initial Margin of as little as 5%.
5.Trade from $14.95. (Conditions apply.)
DIY Tip  
With CommSec’s CFD trading platform, you can trade OTC CFDs with a wide range of Contingent Orders, allowing you to buy and sell in response to changes in price and movements in chosen securities.