CFDs are stock derivatives that allow you to invest in stocks but offer many important advantages over traditional stock trading that make them ideal for taking advantage of short-term/intra-day stock movements.
Index CFDs are also available that allow effective trading of 11 major indices. Index CFDs have low margin requirements (leverage your investments up 20 times) and offer all the trading advantages of Stock CFDs, including short selling.
Direct Short Selling
Take advantage of falling markets with direct short selling. With CFDs, short selling to take advantage of downward price movements is just as easy as buying the stock; much easier than in stock trading. Executing a short sell is done in exactly the same way as a long trade and can be done on a live tradable price quote.
Commissions for CFDs are built into the trading spread for convenience and making it easier to calculate actual profit/loss on positions. In most cases, this is the only fee you pay and the advantage is that the running profit or loss calculation on a position always includes trading fees.
CFDs on Live Prices
Trade CFDs on live prices directly linked to the underlying stock price with a small commission built into the trading spread. Direct Market Access CFDs are available that are traded directly on the live underlying stock price where trading fees are charged separately.
Magnify small intra-day price swings by depositing only a fraction of the trade value in collateral (from as little as 5%). Global Trading allows you to leverage stock and index CFD investments up to 20x (5% margin requirement) where an investment of only USD 10,000 can be used to command a CFD position of up to USD 200,000 in the market.
Magnify Dividends as well as Price Movements
Trading on margin magnifies dividends as well as price movements and if you hold a long CFD position on its ex-dividend day, you will receive dividends as if you held the stock.