City Index offers a range of commission free sector CFDs. These
are ideal instruments with which to take a view on a sector of the
market without having to have a specific view about one particular
company.
All the normal CFD advantages apply, including:
No Stamp Duty
As CFDs are a derivative, there is no stamp duty to pay on
trading UK sectors, however tax laws may change.
Margin Rates
As CFDs are a leveraged product, you do not have to fund the
full value of the purchase price. The level of margin you are
required to deposit to establish a position in UK Sector CFDs is
7.5%.
The effect of margin is that you are able to take far larger
positions in the CFD than you would be able to in the underlying
instrument. This magnifies the extent of any potential gains or
losses.
Pricing Policy
We believe in providing our clients with complete transparency
in the way we price our instruments.
Our UK Sector CFD prices are derived by adjusting the current
spot price (which is calculated once per minute through the day by
FTSE International) down by 0.2% for the bid and up by 0.2% for the
offer.
City Index may adjust the CFD spread to take account of supply
and demand. The UK Sector CFD base currency is Sterling.
Dividend adjustments and corporate actions
Dividend adjustments
UK Sector CFDs will be subject to a dividend adjustment for
positions held at the close of business on the day before an
ex-dividend date (usually, this applies to positions held at close
of business on a Tuesday). This is to reflect the fact that the
sector CFDs will open on a lower level on this date as the
constituent members go ex-dividend.
A dividend adjustment is credited to long CFD positions and
debited from short positions held at the close of business on the
day before the ex-dividend date. Payment is credited or debited to
your account over the ex-dividend date.
Corporate actions
In the event of a corporate action, City Index may, if
appropriate, adjust open sector CFDs, to take account of any change
to the underlying sector quoted price.
In addition, UK Sector CFDs are commission
free.
City Index sector CFDs are based on the FTSE 350 sectors. whose
constituents comprise the members of the FTSE 350. Over 30 sectors
are quoted including:
- Banks
- Pharmaceuticals and biotechnology
- Oil and gas
- Media and photography
Just click on the links below to see example UK Sector
trades.
Example: Buying the Banks Sector
CFD
Example: Selling the Oil and Gas Sector
CFD
City Index trading hours are 08.15 to 16.30.