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CFDs were traditionally only available to institutional investors. Now they are one of the world's fastest growing ways to trade the financial markets. A CFD enables you to trade on a financial instrument such as a Share or a Commodity without having to physically own it.
- Go long or short
Go long or short Markets go down as well as up. With CFDs you can potentially profit from falling markets as you can sell an instrument as easily as buying it, known as 'going short'.
- Access global markets
CFDs allow you to trade on a whole host of global instruments all from one account. Trade on Shares, Indices, Commodities, Sectors, Currencies and Treasuries, 24 hours a day. For a full listing of the range of markets that we offer, click here
- Margin trading
CFDs are a leveraged product meaning that you are only required to deposit a fraction of the overall value of the trade. Typically margins with RBS Spread Trading vary between 1% and 10%. Margin means you can magnify the returns on your investment. However, it is important to remember that losses too will be magnified so margin trading is not necessarily for everyone
- A true 24 hour market
Forex is an over the counter (OTC) market which means trades do not take place through a centralised exchange. This means that Forex trading can and does take place around the world 24 hours a day.
Trading starts in New Zealand followed by Sydney, and moves around the world to Tokyo, London and New York. Investors can respond to currency fluctuations caused by economic, political and social events, at the time they occur, without having to wait for markets to open
- No Stamp Duty
Unlike traditional share dealing CFDs incur no stamp duty on dealing (in UK Shares)
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