CFDs

We use CFDs to take short-term positions and attempt to profit from directional trading, both on the long and the short side, using a combination of technical and fundamental analysis.

Contracts for Difference (CFDs) are agreements to exchange the difference in value of a particular security, from when you enter into the contract to when you close it, without the requirement to own the physical asset. CFDs are traded on margin, so you can take a position without having to pay the full value of the transaction. The margin requirements are commonly just 5% for major shares. CFDs benefit from low commission rates, low margin and zero stamp duty plus the facility to go short as well as long - thus profiting from falling as well as rising markets.

Trading is about probabilities, not certainties, so we base the position size on the capital in your account. We do not risk more than 5% on each trade. By having a risk/return ratio of at least 2:1 we target a profit that is substantially bigger than the potential loss, meaning that over time we aim to win more than we lose.

 

Disclaimer: Trading CFDs is a high risk strategy which can result in losses that exceed your initial deposit. Trading derivatives may not be suitable for everyone, so ensure that you fully understand the risks involved.