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. |
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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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Getting started couldn’t be easier. It only takes a few minutes to open a full account with us, giving you immediate access to a wide range of markets. You can also complete a simple online form to activate your free demo account and try out our platform by using the following link
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With our platform, you can trade a variety of markets including forex, stock indices, commodities and share CFDs. Simply buy or sell at our live price and put forward a fraction of the full contract value as a deposit.
Less capital, more potential
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.
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