Why trade CFDs?
CFDs allow you to trade a financial instrument without having to physically own it, and that can give you a lot of flexibility.
They cover global markets
You’re not restricted to local shares – you can use CFDs to trade on the price of a variety of global instruments including shares, indices, commodities, sectors, bonds and currencies.
Your money can go further
Leverage is an efficient way to use capital – you can have just as much market exposure for a fraction of what you would have to pay for physical shares. Of course, this means that it’s possible to experience losses that are greater than your initial investment.
Potential to profit whether market goes up
or down
Your profit or loss is determined by the difference between the price you buy at and the price you sell at multiplied by the number of CFDs you hold, which means that CFDs give you the flexibility – you can still speculate whether the market’s going up or down. Shorting is often used to hedge physical share positions in volatile market conditions.