Spreadbetting and CFD Trading - Technical FAQs
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Technical FAQs

A Contract for Difference (CFD) is an agreement to exchange the difference in value of a particular market between the time at which the contract is opened and the time at which it is closed. CFDs allow you to trade a wide range of markets (for example, and individual share or commodity), without physically purchasing the underlying instrument. With CFDs, you can make a potential profit if the market goes down (i.e. shorting) as well as up. A CFD guide is available from the educational section of our website.

CFDs, spread betting and Forex are leveraged products. This means that your exposure is magnified. Whilst this means that your profits can be bigger, your potential losses could also be magnified. We offer you the option of using tools such as stop-losses, which are available to limit your maximum potential loss on each trade.

The spread is the difference between the price you can sell or buy an asset. This consists of the ‘bid’ and ‘offer’ prices.

This is the price at which you can sell to close an existing (long) position or open a new (short) position. When trading equities the bid price indicates a buyer in the market that is willing to pay the price in question for the shares. The bid price is usually lower than the offer/ask price.

This is the price at which you can buy to open a new (long) position or close an existing (short) position. When trading equities the offer price represents a seller in the market that is willing to sell their shares at the price in question. The bid price is usually lower than the ask/offer price.

‘Shorting’ or ‘going short’ is simply the mirror image of buying an asset (e.g. a share). If an asset is held short and the price of the asset falls, a profit will be made. Likewise, if you hold a short position and the underlying asset rises, you will make a loss.

The mechanics of shorting or ‘going short’ theoretically involve borrowing an asset from one source, selling it to a third party and then buying it back at some point in the future (hopefully after the price has dropped) to return it to the initial holder. If the price has dropped and you buy the asset back for a lower price than at which you sold, you keep the difference.

Yes, it is possible to open a long position and a short position at the same time in the same asset (e.g. a share). This is known as a ‘Forced Open’ position.

You can either trade directly through your trading platform or call our traders who can place the order for you. We will also walk you through the platform and explain all the functions of trading until you feel completely comfortable with trading yourself.

Your positions will remain open until either you close them, a ‘stop loss’ or ‘limit order’ is triggered or the margin on the account falls below the minimum margin requirement level required to maintain your open positions, at which point the positions may be closed automatically.

Market/At Quote Order: A Market/At Quote Order is an instruction to immediately buy or sell at the prevailing market price. When you place a Market/At Quote Order a buy or sell order will be executed as soon as possible at the first available price.

Limit Order: A Limit Order allows you to set an order at a price different from the prevailing market price. This is used to achieve a price more favorable than the prevailing market price.

Stop Order: A Stop Order allows you to set an order at a price different from the prevailing market price. This is used to achieve a price higher/lower than the prevailing market price.

Many more order types are available for advanced traders. Please contact us for further information.

Yes, you can trade out of hours on selected instruments (e.g indices and currencies). You cannot trade equities out of market hours.

Yes, stop/limit orders placed on an open position will be cancelled automatically should one or the other get triggered first.

Yes, you can select ‘trailing’ on the order ticket then choose the number of points you wish your stop loss to trail the market price. You can also add trailing stop losses to current open positions at any time.

Yes, guaranteed stop loss orders are available on a wide range of instruments. However, they are not available on all equities. Guaranteed stop loss orders carry an additional premium which can vary from 0.3% to 1% of the trade size (on equity CFDs) depending on the asset traded.

Yes, you can add, edit or remove stop losses and limit orders at any point via your trading platform or by calling you dealer.

Part of our duty to you is to make sure that you are fully comfortable with our trading platforms. Your trader will take you through the platform until you are completely comfortable with it.

The advanced charting package offers many technical indicators for you to use, as well as a range of drawing tools with adjustable time frames of historical data. We will provide you with easy-to-use charting packages that are ideal for the novice online trader, but which have the underlying depth of features to suit the professional trader.

A live level 2 feed is effectively a snapshot of what is happening on the stock exchange to one particular share at the present time, in terms of demand for the share and whether there are more prospective buyers than sellers, and vice-versa. The bid volume and price is shown on the left, the offer volume and price is shown on the right. Professional traders use this to evaluate supply and demand for a share, and therefore predict the possible next move of the share price. To simplify, if there are more prospective buyers than sellers for a share at one particular share price, one might anticipate an imminent share price rise.

LIBOR is the London Inter-Bank Offered Rate. This is the figure used when London banks lend between themselves, and is usually close to the Bank of England base-rate. It is also used to calculate the interest on overnight CFD financing.

When a long CFD position is held overnight, interest must be paid by the holder of the position. However, when a short CFD position is held overnight, the holder theoretically receives interest. It is worth noting that, in times of low interest rates, holders of short positions may be required to pay a small amount of interest. The interest paid is based on LIBOR +/- a premium.

At the current time, stamp duty must be paid when purchasing traditional UK shares at a rate of 0.5%. However, stamp duty is not payable on CFD or spread betting contracts, which can represent a significant saving. Tax laws may be subject to change.

As with standard shares, dividends are received on long equity CFD positions. Using CFDs, dividends are paid on the ex-dividend date rather than the dividend payment date, so there is no frustrating wait. Dividends must be paid by the holder of a short equity CFD contract.

At the current time, profits from CFD trading are subject to capital gains tax. However, losses can be offset against CGT. You are advised to consult a tax expert on this matter, as Accendo Markets is not authorised to offer tax advice.

Profits from financial spread betting are currently free of tax. You are advised to consult a tax expert on matters concerning tax as Accendo Markets is not authorised to provide tax advice.

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John, Lee, Charlie, and Mark are all very good… and helpful (this is what all companies need!). JB, Middlesex

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

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Accendo Markets Ltd - 1 Alie Street, London, E1 8DE (UK) Telephone: 020 3051 7461 - Accendo Markets Ltd. is Authorised and Regulated by the Financial Conduct Authority (FCA) No. 475285. Accendo Markets Ltd. Registered in England and Wales No. 6417051. © Copyright Accendo Markets Ltd 2015. All rights reserved.
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154 Reviews

Shaun D

since signing up for Accendo I have had two traders, Mark and Sam. I have found both of these to be very informative about how CFD's work and they have made it very easy for me. Since working with Sam (last four months) my trading knowledge has improved and I can make more informative decisions about which Company's to invest with. Keep up the good work Sam.

Posted 4 weeks ago

Anonymous

I am very happy with the service I get from Accendo Markets and in particular Jermaine Bedlow. He is very professional and pleasant to speak to and this counter for a lot. The only problem I do have is with the Accendo trading platform as the platform will not stay open for more than about two minutes on my works computer before it shuts down, but it is fine on my home laptop.

Posted 2 months ago

Shreekant P

Its a good site for dealing stocks worldwide and having good staff.

Posted 3 months ago

Nick W

Krishan Appiah is one of the most dedicated / informative broker I have ever had.

Posted 3 months ago

Thomas I

Since I have been trading with Accendo Markets I have experienced much greater success than has been my experience with other trading companies mainly due to the help given by, what I consider to be my terminal with the trading floor, Mark, who has been most helpful in reminding me of the progress of my positions throughout the day and keeping me in touch with those positions so that I can more easily make successful trades when appropriate instead of missing out on opportunities through lack of attention. He draws my attention to the situations and enables me to make profitable trades. I am very happy with the situation at the moment and am enjoying the experience. Thomas Irving.

Posted 4 months ago

Kartik A

Accendo markets keep me connected with the market and its very well followed by Mr. Krishan Appiah ,which helps me to take certain decision on time.

Posted 4 months ago

Peter p

I have been trading with Accendo Markets and James Abbott my account manager for coming on 5 years now, James Abbott the senior trader of Accendo Markets provides me with up to minute information when I need it and find him very easy and professional to deal with. Whenever I need to trade or am not sure about anything James is always their to help with any queries I may have. The Accendo Platform I find very easy to use and navigate although it has been slightly changed over the years but definitely for the better. Personal when I do trade 90% of the time, I rather telephone call to place my trade dealings and if James is not there to take my call I find others at Accendo like Sam, Lee take my trades and are. All in all everyone at Accendo Markets are amazing to deal with and my relationship with Accendo is just as I like it. Peter Petrou

Posted 9 months ago

Mrs. J

"Our Trader, Aymen Azizi, has been nothing but attentive to our every need throughout our long relationship with him. No issue is too small, full explanations on all our questions."

Posted 10 months ago

Brian R

I have been with Accendo for a long time now, ten or twelve year's, probably more . As I told Sam (my trader) I thought that CFDs were better than sex . I stopped trading for a few years and only started back about a couple of months ago. But it is as if I had never been gone , so to speak. Sam has helped me every step of the way, at my age one forgets things. I have only praise for Accendo and as far as I am concerned the platform is the best . Now I am back trading at 71 years of age, I might even try sex again. Brian Robertson.

Posted 11 months ago

Jim W

I understand how to make a profit with CFDs. I am restricted by the range of companies I have knowledge of. Although, I am not sure that is a big problem. Tom Robertson is a very fine man.

Posted 1 year ago

Rebekah S

Well, I would not be trading without the help of my trader, Sam Alnakkash. He provided a really great overview of Accendo Markets, an insight into trading in general and how to get started in trading online. His advice, support and training has been fantastic all along the way, enabling me to start trading earlier than I would have done had I not had the support. He has also been very adept at understanding me as a client in order to help me achieve my trading goals. I still have a lot to learn and hope I will get there.

Posted 1 year ago

Nick z

I like the updates on shares I trade. Updates from Bloomberg and Reuters plus industry updates and breaking news. I've had Matt Grice and James Abbott and found both to be excellent. I would like to continue a personal service with James. He understands how and which stocks I trade.

Posted 1 year ago

Steve O

Excellent, knowledgable broker interaction and communication, coupled with very good research and analysis.

Posted 1 year ago

William P

Being new to direct trading I needed help and was given all the time and advice that I needed to feel fully able to make decisions on what I wanted to invest in. I asked for and got exactly the type of info I required provided by Tom Cook, who I would recommend to anyone looking for help.

Posted 1 year ago

Mr. W

I have been dealing with accendo for the past 8 years my broker Amrit I find him very helpful when he is there lol and had many offers to change but will not do it Bill Roberts

Posted 1 year ago

Zoran N

Very good all round service! Timely market information. (charts + trends coverage ) On the ball accounts managers ,quickly available and alert . Part of my success owed to my personal manager Mr Sam Springet , than you.

Posted 1 year ago

Mr Brian C

Easy to deal with.....

Posted 1 year ago

Muhammed S

Accendo markets are great for trading cfds and their research is second to none! Aymen manages my account is extremely helpful and always keeps me updated on market info. Thanks again

Posted 1 year ago

Mr Buta B

Always available, whenever I call I get straight through to someone that can and will help. The staff are very knowledgeable, helpful and easy to talk to.

Posted 1 year ago

Stephen B

Aymen Azizi keeps an eye on what is happening in the market and informs me with timely relevancy, email call, and txt.

Posted 1 year ago

Mr. G

the web site is so easy to use and Aymen my point of contact provides exactly the right level of intervention

Posted 1 year ago

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