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Frequently Asked Questions

Here are some of the questions we are most frequently asked about online trading.

If you have a question which is not covered or would like more information, please contact us here. Alternatively, if you would like to view questions specific to trading CFDs or trading FX, please click on the relevant link:

 
 

What Are CFDs?

CFDs, also known as “Contracts for Difference” are agreements between two parties to settle, in cash, the difference between the opening and closing prices of a financial instrument.

What hours can I trade?

You are able to trade during any time between 10pm on Sunday evening (London Time) and 10pm on Friday evening (London Time), for 24 hours.

How are CFDs priced?

CFDs are valued almost identically to their underlying financial instrument on which they are based. They are usually quoted on a Spot basis.

How are CFDs different to trading shares?

Trading CFDs is very like traditional share trading. However, there are a variety of advantages associated with trading CFDs, which are not available to share trading. For example equity CFD trades don't attach any stamp duty in the UK.

Do CFDs entitle me to any ownership of the underlying asset?

No. However, you will get some of the advantages that you would get if you held the underlying asset, such as dividends and rights issues.

What is the difference between an order and a trade?

An order is placed above or below the current market price. The order will only be filled (done) when the market price trades to the order price. A trade is filled (done) immediately based on current market sell and buy prices.

 
 
 
 

RISK WARNING: Contracts for Difference and margin Foreign Exchange trading carry a high degree of risk to your capital and it is possible to lose more than your initial investment. Only speculate with money you can afford to lose. These products may not be suitable for all investors, therefore ensure you fully understand the risks involved, and seek independent advice if necessary. Please see the Risk Warning.

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