Contracts for Difference (CFDs)
Contracts for Difference are strictly for the active trader, someone who is skilled enough to use the flexibility and agility these holdings offer. Quick, cheap and efficient to trade they are nonetheless to be handled with care, even with the added benefit of our experienced and knowledgeable advice.
As part of Killik & Co’s Advisory Service, CFDs give the holder exposure to changes in the value of an underlying share or market but without the requirement to own the physical asset. Instead of paying the full consideration for the share, a margin payment, from as little as 5% of the value of the contract, may be paid. Consequently, you can hold a position up to 20 times greater than would be possible with a traditional investment. Anticipating the right price movement will magnify profits. Conversely, losses can rise commensurately if the price moves against you.
CFDs are available on the shares of most listed companies in the UK and major economies around the world as well as a range of other products. They can also be used to hedge, or protect, an existing position or investment portfolio.
CFDs do not attract Stamp Duty and our Limited Risk facility lets you trade CFDs without assuming a potentially open-ended liability.
Please note that a separate Client Agreement applies to our Trading Services/CFDs. For information about our charges please speak to your Broker.
Risk Factors
Both CFD trading and Spread Betting involve high risk and are therefore not suitable for every investor. Profits and losses can be many times your initial deposit. Please refer to our Contracts for Difference and Spread Betting brochures for more information on the benefits and risks.