With CFD trading, you can speculate on rising or falling prices on thousands of global markets.
Develop fresh trading ideas with the help of our experts' monthly market predictions and insights.
Take a position on over 10,000 markets - including indices, forex, shares and more - with leveraged access using a CFD.
A contract for difference (or CFD) is an agreement between two parties to exchange the difference between the opening price and closing price of a contract.
Unlike conventional forms of trading like physical shares trading, CFDs enable you to potentially profit irrespective of whether market prices are moving up or down.
This means you can potentially profit even during falling markets. For example, if you think the S&P 500 Index will fall in the coming days because a number of major US firms are expected to report weak earnings, you can go short or ‘sell’.
If the index moves in the way you predicted, you can profit from every point the S&P 500 falls.
And, as a leveraged product, you can place a trade by depositing just a fraction of the full value of your position.
Remember, however, that leveraged trading allows you to gain significant market exposure, which means your returns will be magnified. As a result, you could incur losses that exceed your deposit if the trade moves against your prediction.
You can also use CFDs as a hedging tool to help offset any losses incurred in your physical portfolio of shares.
At City Index, we offer low commissions, tight spreads and margins from 1% on over 10,000 financial markets, including indices, shares, currencies, commodities and more.
Our range of trading platforms and Apps for iPhone™, Android, BlackBerry and Windows Phones enable you to instantly react to market prices at any time of the day – even when you’re on the move.
CFDs can be tax efficient, depending on your circumstances. You can use any losses you incur to offset against your Capital Gains Tax (CGT) liabilities*. For more information, we recommend you seek independent investment advice.
When you open a CFD trading account with City Index, you can benefit from:
*Spread betting and CFD trading are exempt from UK stamp duty. Spread betting is also exempt from UK Capital Gains Tax. However, tax laws are subject to change and depend on individual circumstances. Please seek independent advice if necessary.
†1 point spreads available on the UK 100, Wall Street, Germany 30, France 40 and Australia 200 during market hours on daily funded trades & daily future spread bets and CFDs (excluding futures).
**Fixed spreads are available on major FX pairs during London trading hours between 8.00am GMT and 6.30pm GMT.
City Index is a trading name of GAIN Capital UK Limited. Head and Registered Office: Park House, 16 Finsbury Circus, London, EC2M 7EB. GAIN Capital UK Ltd is a company registered in England and Wales, number: 1761813. Authorised and Regulated by the Financial Conduct Authority. FCA Register Number: 113942. VAT number: 524837435.
City Index and City Trading are trademarks of GAIN Capital UK Ltd.
The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.
GAIN Capital UK Ltd is authorised and regulated by the Financial Conduct Authority More information©