What is CFD

CFD stands for Contract For Difference, which is a derivative product that is traded, where you profit from changes in the prices of stocks and shares.

CFD’s are derived from an underlying instrument, you will benefit from dividend payments if you hold relevant indices.

The CFD price is the price of the underling asset (whether it is a share, index, or future). If the price of the underlying asset goes up, so will the price of the CFD. A major difference is that there are no exchange fees and many of the inefficiencies of trading the underlying shares on the exchange are eliminated. Also, CFDs allow you to use the power of leverage which is not generally available in equity products. As a result, CFDs have grown in popularity dramatically over the past few years.

A CFD can be traded during its designated trading time , but limit and stop orders can be adjusted even when trading is closed, except at weekends and bank holidays where you will not be able to trade or place/adjust limits/stop orders.

There are financing charges that are applicable. If you have an open position at the close of business 22.00 UK then your position will be rolled forward to the next business day. The Financing rate is LIBOR + 3% for long (buy trades) and LIBOR – 3% for short (sell) trades.

A single account can give you access to stock indices, Oil, Gold, Silver, and of course a wide range of forex pairs.  You can instantly use your gains from one trade to open new positions in other markets, or to diversify your investments across a number of different markets.

You can manage your risk using Stop Loss and Limit orders .We also provide  Trailing Stops , Entry orders and much more.

Why Trade CFD

Contracts for difference offer all the benefits of trading shares without having to physically own them. Contracts for difference (or CFDs as they are sometimes referred to) mirror the performance of a share or an index. Contracts for difference are traded on margin, and the profit/loss is determined by the difference between the buy and the sell price. Because contracts for difference trade on margin, investors only need a small proportion of the total value of a position to trade. CFDs also mirror any corporate actions that take place. The owner of a share CFD will receive cash dividends and participate in stock splits.

CFDs are not suitable for 'buy and forget' trading or long-term positions. Each day you maintain the position it costs money (if you are long), so there is a time when CFDs become expensive. For short-term trading they have advantages, provided you get the markets right. But be prepared at some economic stage to cut the position.

Contracts for difference (CFDs) are instruments that offer exposure to the markets at a small percentage of the cost of owning the actual share. This allows the investor to buy or sell an instrument, which usually costs only 10 per cent of the price of the underlying share. It offers great leverage opportunities.

• Use automatic orders to take profits or to limit losses without placing manual trades.
• Use automatic orders so that you can trade when you want, without having to watch the markets constantly.
• Take advantage of a full package of analytical and technical tools.
• Unlimited position time, no expiry date.
• 24-hour trading and support