CFDs is traded on margin between a trader and a CFDs provider, to exchange the cash difference between the opening price and closing price of a transaction. CFDs products are introduced for products that are usually less accessible to retail investors, allowing retail clients to trade shares, equity indices and futures. Trading CFDs is flexible as there isn't any commission, trading fees, clearing fees or stamp duty.
One Single Account
You can trade multiple asset classes using a single trading account along with currencies and precious metals. Clients can create an ideal multi-investment portfolio in a single account, making easier portfolio management and monitoring.
Hedging with CFDs
CFDs allow you to short sell and to profit from falling market prices. This can be used as a hedging tool against portfolio investments. For example, if you have a portfolio of US tech stocks which you wish to keep for long term, but feel that there is a short-term downside risk to it, you could mitigate a short-term loss by shorting the CFDs for NASDAQ.