Sector betting enables you to take a broader position on the direction of entire sectors such as oil, banks or miners, without having to take a position on the performance of an individual company within the sector.
At City Index, we offer competitive futures spreads on more than 25 sectors including banks, miners, real estate, pharmacy and more. Our sector markets are open to trade from 8.15am and our spreads start from just 0.4%.
Sectors CFD Trading Example: Miners
Concerns over the pace of growth in China is causing fluctuations in the mining sector. Our CFD spread for the mining sector is 22124/22213.
Going Long
You believe the mining sector will rise and decide to buy 1 CFD at 22213 (our buy price).
In order to open the position you need to put down a margin of 12.5% of the notional value, which is 22213 x 1 CFD x 12.5% = £2776.62.
Over the next few days, worries have subsided over the China’s growth. This leads to a rise in the mining sector.
Our CFD spread for the mining sector has risen to 22413/22502. You decide to close your position by selling 1 CFD at 22413 (our sell price).
Result: The opening value of the CFD trade is £22213 (1 CFD x 22213). The closing value of the CFD trade is £22413 (1 CFD x 22413). This gives you a £200 profit.
Alternative scenario: If the price had fallen to 22013, you would have lost £200 (22213 – 22013 x 1 CFD).
Going Short
You believe the mining sector will fall and decide to sell 1 CFD at 22124 (our sell price).
In order to open the position you need to put down a margin of 12.5% of the notional value, which is 22124 x 1 CFD x 12.5% = £2765.50.
Over the next few days, media reports that China’s growth will slow even further. This leads to a fall in the mining sector.
Our CFD spread for the mining sector has fallen to 21835/21924. You decide to close your position by buying 1 CFD at 21924 (our buy price).
Result: The opening value of the CFD trade is £22124 (1 CFD x 22124). The closing value is £21924 (1 CFD x 21924). This gives you a £200 profit.
Alternative scenario: If the price had risen to 22324, you would have lost £200 (22324 – 22124 x 1 CFD)
Education and Resources
Our superior trading platform is packed with resources to help you make better informed CFD trading decisions. Our resources tools include live news feeds from Thomson Reuters and Dow Jones Newswires and a superior charting package that is available free of cost to all City Index trading account holders.
Our specialised webinars, held by our team of CFD trading experts, enable you to learn CFD trading at your own pace. Find out more about our specialised webinars and seminars.
Special Introductory Offer
New City Index clients are also entitled to special reduced commission rates starting from just £5 period of four weeks, so you can place your first CFD trade with confidence. At the end of the four-week period, our normal CFD trading rates will automatically be applied to your account. Find out more
Trading Platforms
Our trading platforms enable you to trade securely and at any time of the day. Our easy-to-use online trading platform makes it possible for you to access live prices, while our cutting-edge iPhone™ Trading App City Trading™ lets you trade from wherever you are and at any time of the day.
Spread betting and CFDs are leveraged products and can result in losses that could exceed your initial outlay, so please make sure you fully understand the risks involved.
