Why Trade CFDs

CFDs can be traded directly on live prices or delayed prices.

CFDs Magnify the small intra-day price swings by depositing only a fraction of the trade value in collateral with margin lending (from as little as 5% for indices and from 10% for stock).

CFDs Magnify the long-term price increase of a position, with every 1% stock price movement, representing a 10% return on margin.

CFD’s also magnify the dividends received if you hold a long CFD position on its ex-dividend day. You will receive dividends as if you held the entire stock.

Take advantage of falling markets with direct short selling

With CFDs, short selling to take advantage of downward price movements in a stock is just as easy as buying the stock (going long).

CFD Hedging

For people with large stock holdings in a certain position, CFDs provide an opportunity for traders to hedge their positions in times of uncertainty. As differing to Options, the value of the CFD is tied directly to the stock price.

Fewer costs

CFDs have the advantage that they are not subject to some of trading costs associated with trading traditional stocks including Custodian Fees and Stamp Duty.

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