Contracts for Difference

Advantages
Margin Trading
Characteristics
Example A - Long CFD
Example B - Short CFD

Characteristics

Funding
Whilst a long position remains open, an overnight financing charge will be levied against your account for the line of credit extended. This will be applied at an interest rate linked to LIBOR (London Inter Bank Offered Rate). In contrast, any short positions receive interest during their life.

Costs
Our standard schedule of costs is available on request. Over and above these standard costs, commission is charged on each leg of a CFD trade.

Dividends
Where you hold a position on the ex-dividend date, you will be credited with 80% of the gross dividend on any long positions (net of any applicable taxes and costs), and debited 100% of the gross dividend on short positions. This is reflected directly as an adjustment on your account.

Voting Rights
CFDs are synthetically created and hence do not entitle the holder to voting rights in the underlying company.