ASX FX CFDs
In foreign exchange terminology, ASX FX CFDs are cash-settled foreign exchange or FX contracts that trade on the Australian Stock Exchange or ASX. CFD stands for “Contract for Difference” and implies a type of forex contract which will be closed out on the last trading day. At that point, only the net cash difference between the contract forex rate and the prevailing market rate will be settled between the counterparties to the transaction for each outstanding contract.
Currently-available ASX FX CFD contracts encompass the following currency pairs: AUD/EUR, AUD/JPY, AUD/NZD, NZD/JPY, EUR/USD, AUD/USD, USD/JPY and NZD/USD.The ASX allows these contracts to trade on as little as 5% margin which gives speculators up to 20:1 leverage when using these foreign exchange products.