What are CFDs

The Concept

  • A Contract for Difference is a cash settled, rolling Over The Counter (OTC) Derivative product
  • A CFD offers you all the benefits of trading physical shares without having to physically own them
  • The "contract", mirrors the price and performance of the underlying instrument
  • As with traditional share trading, your profit or loss is governed by the price you buy at and the price you sell at (and vice versa for short-selling)
  • CFDs are a margined product, allowing you to make the most of your trading capital
  • Clients are charged interest on long positions and receive interest on short positions. (only relevant to individual stocks, sectors and indices and applicable to positions held overnight)

The Advantages

  • Transparency - if a share price is trading at 139.10p/139.20p, the CFD should be the same
  • No Time Limit - CFDs do not expire, unlike futures based contracts and no settlement restrictions)
  • Trade Long and Short - The opportunity to profit from falling as well as rising markets and a very efficient hedging tool
  • Access to a variety of different markets - International Shares and Indices, Commodities, Treasuries and Foreign Exchange
  • No minimum trade size - trade from as small as one CFD (one share)

Margins

  • 1% - FX, Sectors, Treasuries, Spot Gold & Silver
  • 3% - Commodities (Metals, Energy & Agriculture)
  • +5% - European, UK and US equities
  • +10% - Australian, Far East, Greek & UK Mid-cap
  • 15% - South Africa, Polish, Czech, Hungarian and Turkey
  • 0.5% - Indices

Product List

Click here to download the Product list.


Pricing

Click here to download a Pricing list.


Global CFDs is an authorised Financial Services Provider, FSP License No. 36999 and Registration No. 2008/197368/23.