What are Contracts for Differences (CFDs)?

A contract for differences (CFD) is a contract with an authorised and regulated dealer with the FSA, such as GFT Global Markets, to exchange the difference between the opening and closing values of a trading instrument, multiplied by the number of CFDs in the contract. CFDs can be contracts with a share, stock index, bond, interest rate, commodity or foreign currency as the underlying market.
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Profit on rising or falling markets |
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Wide range of trading markets |
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Low capital requirements - leveraged trading |
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Competitive commission and financing rates |
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No stamp duty on UK shares |
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Trading flexibility |
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Absolutely free award-winning software |
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No delivery or trading expiration period for equity CFDs |
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Dividend adjustment credits on long positions |
WHY TRADE CONTRACTS FOR DIFFERENCES? |
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As one of Europe's fastest-growing trading instruments, CFDs are very simple and relatively inexpensive to trade, and are more flexible than other trading alternatives. CFDs can suit most trading strategies, and can complement your existing investing methods.
CFDs were originally created to imitate traditional share trading, but they differ because you don't actually own the share; it is a derivative product. So you can seek to profit from price fluctuations without putting down large amounts of capital. CFDs offer active traders significant benefits over other trading products. For example, with CFDs, you may have the ability to profit from both rising and falling markets, and you can also leverage your capital up to 100:1 with GFT Global Markets.
Why should you trade with GFT Global Markets?
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CFDs are a leveraged product and therefore may not be suitable for all investors. CFDs carry a high degree of risk to your capital and it is possible to lose more than your initial investment or credit allocation as well as any variation margin that you may be required to deposit from time to time. You should only speculate with money that you can afford to lose. Please ensure that you fully understand the risks involved and seek independent advice if necessary and prior to entering into such transactions.
Click here to read the full risk warning.
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