Contracts for difference on shares allow investors to speculate on the underlying asset price fluctuations without owing shares physically. This feature allows avoiding stamp duty and therefore earning money on price movement.
Operations with CFDs are conducted based on the principles of margin trade, thus only 10% of the contract price is enough to open a position. The result of the transaction (either profit or loss) is determined by the difference in the contract value between the opening and closing prices. One can hold an opened position as long as they wish. The transactions may be run during the New York Stock Exchange session time.
The prices quoted are the same as the underlying market price and the Client's open position is valued in real time, with every tick of the market.
Unlike real share trading with CFDs you can go both long and short. This means that you can sell equity without buying it, if you know the price will go down.
You can try trading equity CFDs by opening of a demo account, which will allow you to understand the nature and peculiarities of these financial instruments better and develop your own trading strategy. For complete list of available CFDs on shares, please visit contract specification page.
Please note that open positions for CFDs are transferred to the following trading session with a rollover interest charge or credit. All pending orders, including Stop Loss, Take Profit, Buy Stop, Sell Stop, Buy Limit, and Sell Limit, are not transferred to the following day.
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