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About Pulse

What is a CFD?


A CFD offers you all the benefits of trading shares without having to physically own them. Simply put, it is a contract that mirrors the performance of an underlying instrument. It is traded on margin, and just like physical shares your profit or loss is determined by the difference between the price you buy at and the price you sell at.


A CFD offers you all the benefits of trading shares without having to physically own them. Simply put, it is a contract that mirrors the performance of an underlying instrument. It is traded on margin, and just like physical shares your profit or loss is determined by the difference between the price you buy at and the price you sell at.


What is margin trading?


Margin trading allows you to free up your capital by placing only a small percentage of the value of trade in your account. Profit and loss is credited and debited to your margin deposit as the market moves. Margins are typically 10% or less on Share CFDs and 1% on Index, Commodity and Treasury CFDs.


What charges are involved in trading CFDs?


Pulse offers commission free trading on index, commodity and treasury CFDs. A low commission charge is applied to equity CFDs. As is our commitment to offering you the most competitive trading service, it is our intention that this commission charge will be the lowest in the market. Please refer to our rates schedule for current commission levels.


Only financing on equity positions held overnight is charged, and this may be paid or received dependant upon the position. There may be some administrative charges associated with your account. Please speak to our Sales advisors for more information.


How and when is financing charged, and how is it calculated?


If you carry a CFD Share position overnight, it incurs a financing cost. Finance is calculated on 100% of the value of the equivalent position. It is calculated on a daily basis at market price. If you are long, you'll have to pay interest to Pulse; if you are short, you may receive interest from Pulse. Financing on Commodity and Treasury CFDs is factored into the futures price and therefore no overnight rates will apply. Financing is charged on any equity positions held overnight (positions open at 22.00 London time).


When are ledger balances converted on my account?


When trading on instruments not denominated in your reporting currency, any profit or loss on these positions will accrue as ledger balances on your account. Pulse may set up your account to automatically convert your ledger balances back to your reporting currency on a Daily basis.


What is the minimum deal size?


The minimum deal size is one (1) CFD. This is the equivalent of one share


Can I trade over the telephone?


Yes, CFDs can be traded over the telephone, although clients will generally find that trading over the internet is faster than telephone trading. There is, however, no penalty for trading over the telephone.


Why are some trades denominated in different currencies?


Trades placed on US, European or Asian markets are denominated in the currency used by the exchange. Your P/L will be reported in the currency of your choice, and different currency ledgers are created on your account.


What is the life of a CFD trade?


A CFD is an open-ended contract, if you have not closed your position by the end of the trading day, then the position is rolled into the next day. At this point, financing is paid or received. Provided that you maintain enough available margin, your position is maintained indefinitely.


I am a US citizen - can I trade CFDs?


No. Regulatory restrictions in the USA mean that CFDs cannot be offered to US residents. With suitable experience US residents are, however, able to trade Foreign Exchange with Pulse. Click here for Pulse site.


Can I trade other products from the same account?


Yes, Pulse customers can also trade Commodities, Treasuries and Foreign Exchange from their CFD account.


Can I receive dividends with CFDs?


Yes. Although a CFD trader does not physically own the share, s/he can partake in Corporate Actions and receive dividends. However, as the CFD trader does not own the share itself, s/he is not entitled to any voting rights


How can I profit using CFDs in a falling market?


A client can short sell Share and Index CFDs. This means that the trader can sell a CFD as an opening position. "How can a trader sell something they don't own?" This can be done as what the client is buying is a contract between themselves and the CFD provider, based upon the price movement of a share. It does not matter who agrees to buy and who agrees to sell, as neither party physically owns the share anyway. The important thing is how far the price of the Share or Index moves, and whether or not it moves the way you want it to. Using this facility, a trader may be able to profit from a falling market.


Will I be charged commission on equity CFDs?


Yes, you will be charged a low rate of commission on equity CFDs. Please refer to our Rates Schedule for current pricing.


What is the margin level on Commodity CFDs?


Pulse' margin rate on commodity CFDs are as little as 1%


How do I calculate the margin on Commodity CFD products?


As commodity and treasury CFDs deal on differing point increments ranging from 0.01 to 1.0, margin calculations may vary. Your margin requirement can be calculated as follows:

For example: You buy 10 USCRUDE DEC04 CFDs @USD$50.

 

Your margin can be calculated as follows [(10 x 50) / 0.01] x 3% = USD$1500


What happens to my Good Til Cancelled (GTC) orders on expiry of the Commodity CFD contract?


GTC orders placed on treasury or commodity CFDs are automatically cancelled at 22:00 London Time on the Pulse expiry date for the relevant CFD contract.


What commission is charged on Treasury CFD products?


No commission is charged on Treasury CFD products.


Do I incur financing on Treasury CFD products?


No you do not. Because the position is rolled upon expiry, the price you pay will already incur financing in the contract value.


What happens to my stops and limits on expiry?


All pending orders are automatically cancelled by the dealing software at 19:00 London time on the day of expiry.


Do I need to have previous trading experience to trade CFDs?


Pulse will need to determine whether CFDs are appropriate for you, taking into account what you tell us about your knowledge and experience of the financial markets.


Does Pulse offer credit accounts?


No. Pulse only opens deposit accounts.


Who do I deal with at Pulse?


Pulse has a number of dealers trading on the internet and the telephone.


What are the benefits of trading CFDs with Pulse?


Clients benefit from margin trading, commission free trading on idex, commodity and treasury CFDs and low commission rates on equity CFDs, reduced trading costs (no Stamp Duty), quick execution and a 24 hour online trading service.


What kind of instruments can be traded as CFDs?


Individual Shares:

•Indices

•Commodities

•Treasuries

•Sectors

Pulse offers the instruments above in 10 different markets around the world.


Is Pulse a market maker or an online broker?


Pulse is a market maker, not a broker, and acts as a principal, not as an agent.


Is the price I see on Pulse the price I can trade at?


Yes. The prices Pulse publishes are real-time and the service is price driven. Clients can execute trades and receive confirmation within seconds. The prices quoted can be dealt on at any time, at the click of a mouse. However, requotes may occur during large market movements or if share availability is exceeded by a single order or multiple client orders.


Does Pulse give trading advice?


No, Pulse provides an execution only service. Pulse is able to provide factual information upon request but is not authorised to give direct or indirect trading advice.


What should I do if I have a complaint?


Should you have reason to complain it is important that you first speak to your usual contact. Alternatively contact a member of the helpdesk staff who will also be happy to assist. Complaints will usually be resolved at this early stage.


If your complaint is not resolved to your satisfaction in the first instance you will be able to refer the matter to our Compliance Department, in order for them to conduct their own investigation. A final response will be issued by Compliance


What is the minimum account opening size?


We require a minimum of £20,000 to open an account. Alternatively, you can lodge existing share holdings with us, where appropriate.


On what stocks can I trade CFDs?


Tradable markets include UK, US, Canada, Germany, Austria, France, Holland, Italy, Spain, Finland, Belgium, Sweden, Norway, Denmark, Ireland, Switzerland, Greece, Portugal, Finland, South Africa, Hong Kong, Australia, Japan, Singapore and Mexico.


How do I execute a CFD?


Once you have opened your CFD account and deposited the initial margin, you can trade via the Pulse on-line platform or over the phone - or a combination of both.


How do I access my account?


Pulse supports an on-line system whereby all clients can access their close of business account via a web-browser. Accounts are valued overnight. Statements and contract notes are also sent by post, if required.


How do corporate actions affect my CFDs?


Corporate actions, special pay outs and dividends that affect a stock are reflected in the value of your CFD account. You will never be better or worse off as a result of such corporate actions, which almost always replicate the behavior of the underlying stock.


What security precautions have been taken to secure access of my account on-line?


Communication with all Pulse’ on-line systems are protected using industry-standard 128-bit encryption technology. In addition, Pulse’ internal networks are secured by state-of-the-art firewall software. Our trading systems are built using a multi-layered approach, so that in the unlikely event of one layer being compromised, the system as a whole is still secure. Finally, our sophisticated order management system verifies each order against pre-defined rules, instantly highlighting and rejecting anything unusual. In order to keep your account completely secure, you must not divulge your username or password to anyone, you should use a password that is difficult to guess, and you should change your password frequently.


How are dividends treated?


p>If you hold a long CFD, you will be credited the value of the dividend on the ex-dividend date. If you hold a short CFD, you will be debited the dividend on the ex-dividend date.


Do I have voting rights on the underlying stock?


CFDs do not entitle you to any rights in connection with the underlying reference shares.


How can I transfer positions to you from my existing stockbroker?


This is simple and normally takes no longer than a couple of days. We will need details of the stocks we can expect to receive and where they will be coming from. We will organize the rest. We do not charge for stock transfers.


How long can I hold a CFD?


There are no expiry dates on CFDs, so you can run a position, long or short, for as long as you like.


Will I receive interest on my funds?


Yes, your account will be credited interest on all monies deposited in your CFD account monthly, based on the daily cash positions during that month, as long as your credit balance is above £100,000.