The stock index of financial trading is the contract for difference (CFD). It is a type of margin trading, and refers to a trading mode that does not involve the exchange of physical commodities or securities, and only uses the difference between the settlement price and the contract price for cash settlement. After the position is closed, investors will pay or receive profits or losses brought about by the trading. CFD reflects the performance of stocks or indexes. It can exploit the advantage of stock trading without actually holding stocks, and allows traders to use the leverage on the spot market to conduct transactions in the index and commodity markets without actually purchasing related securities. It is a kind of margin trading. The difference between the buying rate and the selling rate determines your profits and losses, just like the actual stock trading.
We provide some trading products with price limit. In order to ensure the trading volume balance of foreign exchange, the trading will be temporarily stopped to avoid violent market fluctuations. The exchange will interrupt trading until the market returns to equilibrium, which usually takes only a few minutes, and then the trading will be restarted with a new price limit. When the trading is suspended, XCOQ will stop offering quotes until the trading resumes. For Nasdaq Index (NDI) and Standard & Poor's 500 Index (SPI), the price limits will enable the trading to suspend when NDI, SPI and Dow Jones Industrial Average (DJI) contracts drops by 5%, 10%, 15%, and finally by 20%.