our-products-cfds

CFDs

CFDs : the main benefits:

  • No stamp duty payable*
  • Make money if an asset price rises or falls (i.e. go long or short)
  • Less initial outlay- control an asset for as little as 1% margin
  • No contract expiry
  • Deal at market prices – no extra spread

About CFDs

Contracts for Difference (CFDs) are a useful tool for traders and investors, providing flexibility and maximising the use of capital. A CFD is a contract on an underlying asset (for example, a share, commodity or currency) to pay or receive the difference between the opening price and the closing price of the asset.

CFDs allow you to trade in the financial markets without actually owning the underlying asset on which the CFD is based.

You can make money from CFDs whether the market (e.g. a share price) moves up or down. This is known as ‘going long’ (making money when the market rises) and ‘going short’ (making money when the market falls). Of course, if the market moves against you (e.g. it goes down when you went long) you’ll make a loss, much like conventional types of trading (e.g. share trading).

Under current UK tax law, no stamp duty is payable on CFD transactions.*

CFDs are leveraged products, and can result in losses that exceed your initial deposit. Risk management tools are available such as stop-losses, which can limit your risk.

*Under current UK tax law. Tax laws may be subject to change.

Try the following links for more information on CFDs