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 A CFD (or Contract For Difference) is an agreement to exchange the difference in value of a particular asset between the time at which the contract is opened and the time at which it is closed.
With our platform, you can trade share CFDs, stock indices, commodities and forex. Simply buy or sell at our live price and put forward a fraction of the full contract value as a deposit (see Contract Details).
Less capital, more potential
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Using the shares market as an example, a key difference between CFD trading and share trading is that when you open a CFD position, you do not have to pay for the full value of the shares. Instead you put up a deposit, which starts from just 5% for major UK shares. This means you can trade up to 20 times your initial capital – greatly increasing the potential of your investment. You deal at the cash price of the market you select, and pay your broker a commission which is calculated as a percentage of the value of the transaction.
When you close your position, the difference between your opening contract value and your closing contract value is realised. So, just as with buying shares or trading futures, the degree to which you are correct in your CFD trading affects how much you make or lose.
Geared products like CFDs can help you make the most effective use of your investment capital. However, CFDs are a leveraged product and can result in losses that exceed your initial deposit. Trading CFDs may not be suitable for everyone, so please ensure that you fully understand the risks involved. |
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WHY TRADE CFDS?
We offer CFDs on global markets at a competitive rate. CFDs offer a number of key benefits to active traders:
Wide access
CFDs give you 24-hour access to the world’s financial markets, using a single account. For example, if you have an interest in shares, the level of Wall Street, the price of oil and the exchange rate of the dollar against the euro, you can deal all of these markets using a single account.
Go long or short
With CFDs you can buy or sell at the quoted price, to profit from rising or falling markets.
Immediate execution
Access the markets immediately with one-click trading and instant trade execution.
No stamp duty*
On certain shares, i.e. those in Switzerland and the UK, CFDs are exempt from stamp duty. This significantly reduces the cost of trading – and the scope of your gains.
*Tax law can be changed or may. | |
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