CFDs provide an alternative way to trade. Retail traders and investors now have the opportunity to benefit from institutional instruments at a global level.
Leverage
CFDs are traded on leverage, providing exposure within the market without the costly initial outlay needed for physical shares. Take the opportunity to profit from market movements and diversify your trading strategy and portfolio for a smaller initial investment. It is necessary to be aware that just as magnified exposure can increase your profits, it can work similarly with losses and you can potentially lose more than your initial deposit.
Opportunity
Waiting to set aside the capital to buy a share portfolio can mean missing valuable trading opportunities. CFDs allow you to be involved in the market now. And with only a proportion of your capital invested using CFDs in comparison to physical shares, you have the freedom to use the difference for other investment opportunities – making your money work smarter.
Shorting
Markets don’t always move up. Shorting offers the flexibility to profit in bull and bear markets by selling high and buying back low – an opportunity not available with physical shares. Additionally, depending on the instrument you may be paid financing fees on positions held overnight.
Hedging
CFDs can be used to offset risk. They can work as a shorter-term strategy to protect your longer-term investments. If you fear a fall in the value of your physical investments, but selling has tax implications, an exact hedge with CFDs can ensure that any loss on your physical share holdings is counter-balanced by the profit from your CFDs.
Global markets
Trade where you want, what you want, when you want. Accessibility to global markets lets you trade shares, indices, commodities, bonds, sectors and FX CFDs 24 hours a day. Global markets offer more opportunities to trade and diversify your portfolio.
Trade FX, indices, commodities and all non-share CFDs commission free, without the management fees of margin loans.
