What are CFDs?

CFD’s (Contract for Difference) are financial derivative products that replicate the underlying price movements of securities and investment products traded daily in the global financial markets.

CFD is a cost effective derivative that mirrors the underlying markets price movements. The benefit is that, as a client, you do not have the liability of the contract delivery on expiry. You can still enter into a buy or sell commitment. Your only concern is the price movement and the size of your trade.

Whilst CFDs expose the trader to potentially higher profits, they also expose greater potential losses. CFD trading is intended for speculative investors who have experience and knowledge on how the prices of CFDs are derived as well as the key concepts of margin and leverage. Prior proceeding with CFD trading you should seek advice from an independent and suitably licensed financial advisor and ensure that you have the risk appetite, relevant experience and knowledge.
Please read the full Risk Disclosure.

An example of trading with CFDs:

You sell 100 CFDs @ 86.90 (predicting a bearish market, meaning you expect prices to fall)

You buy 100 CFDs @ 86.84 Therefore your P/L would be…

P/L = (8690-8684) x 100 = 6 x 100 = $600