Types of trades

City Index offers a range of different  products and services to suit all trading profiles.

Types of trades

Whether you’re a short term investor or a long-term trader, City Index offers a range of different markets to help minimise your dealing costs and maximise your trading potential.  

Take a look at our table to see which type of trading style suits you best and which markets might be right for you.

types of trades

DFT and CFDs explained

Our two most popular ways to trade the markets as they are ideal for shorter-term trading (positions open for days or weeks) based on technical levels and market news. Trading the DFT or CFD equivalent provides:

  • Tightest spreads (compared to futures and options)
  • No expiry dates 
  • Incurs a finance charge for positions held overnight
  • A dividend adjustment may be applicable to some markets
  • P&L crystallised only when positions are closed or partially closed
  • Instruments  labelled as DFT in the platform ‘daily funded trade’ or CFD

Monthly and quarterly futures

City Index offer monthly and quarterly futures on some markets. Futures may be ideal for customers who want to take a position over the longer term (weeks and months) and base trades on both technical and fundamental analysis.

  • Wider spreads than non-futures markets (DFT/CFD equivalent)
  • No overnight financing charge applied as contained within price
  • Fixed monthly/quarterly expiry date
  • Positions may be rolled over to next month/quarter
  • Positions can be rolled over to the next contract (in trading platform for spread bet and telephone only for CFD)
  • Positions will be closed at mid-price on settlement date and re-opened in next contract at bid/offer

Options

Options give you the right (but not the obligation) to buy or sell at a specify price before the expiry date.  With City Index you can trade options on a wide range of markets. We offer a variety of daily and monthly futures on options to trade online.

Test drive a trading account
Trade risk-free with a demo account