Contracts for Difference (CFDs) and Spread Betting

At Killik & Co we offer Contracts for Difference (CFDs) and Financial Spread Betting as part of our Trading Services. This means that, unlike most firms who simply offer the facility as an execution only service, ours comes with the ability to seek our advice before taking a position.

CFDs and Spread Betting are strictly for the sophisticated 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.

For those comfortable with the leveraged risk involved, CFDs and Spread Betting offer a flexible, lower cost and potentially tax efficient* way to utilise a whole range of financial instruments including: equities, indices, foreign exchange and commodities.

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.

The ability to bet on markets going down (go short) as well as up (go long) means you can use Spread Betting to speculate on rising and falling prices.

Magnified profits... and losses

As a leveraged product you only need to deposit a portion of the contract value, known as an initial margin payment. This could be 10% of the value of the Spread Bet you are making, or as little as 5% of the value of the contract for CFDs.

If the market moves with you, your profits could be magnified many times. However, if the market moves against you, your losses could be magnified in a similar way and exceed your initial investment.

At Killik & Co we offer the ability to limit your exposure to potential losses through the use of stop losses and in certain circumstances, guaranteed stop losses. Our intention, as always, is to see our clients trade within their experience and means and we will advise accordingly.

Please note that a separate Client Agreement applies to our CFDs and Spread Betting. For information about our charges please speak to your Broker.

Risk Factors

Both CFDs 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 explained booklet and brochures for more information on the benefits and risks.

* Spread Betting is currently free of UK Capital Gains Tax and Stamp Duty, CFDs currently do not attract Stamp Duty, although these positions could change.