Guide: General Information


If you are an investor and you don't know about Contracts for Difference (CFDs) you should do.CFDs are a cost effective, flexible and tax efficient way to back your favourite shares or markets.

We have provided a comprehensive and informative PDF guide for the investor who is new to tragin CFDs. Produced in conjunction with leading CFDs supplier, GNI, it covers everything from an introduction to this increasingly important investment tool, right through to trading strategies designed to help you make money.

Alternatively browse through our online section to find out more about the advantages of CFDs.

Contracts for difference (CFDs) have been used in the UK stock market for a number of years, mainly by institutions seeking to extract the performance of a stock rather than owning the actual share itself.

However, it is only relatively recently that they have become available to the private investor.

CFDs have many advantages and are proving increasingly popular.

You can use them to establish short positions as easily as long, to trade on margin (i.e. without having to put up the full consideration of a trade), and to gain low cost exposure to equity movements, as there is no stamp duty payable on CFD transactions. These features make them ideal trading instruments for active equity traders.

Remember, however, CFDs are a type of derivative instrument and you will still need to be 'experienced' to open an account with a CFD provider.

In this Centre we will look at the history of CFDs, pros and cons of the product, characteristics, applications, cost comparisons and who is providing them.

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