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CFD Trading - SVK Markets - Trade with Confidence

CFD Trading

A contract for difference (or CFD) is an agreement between two parties to exchange the difference between the opening price and closing price of a contract.

Unlike conventional forms of trading like physical shares trading, CFDs enable you to potentially profit irrespective of whether market prices are moving up or down. This means you can potentially profit even during falling markets.

CFDs can be tax efficient, depending on your circumstances. You can use any losses you incur to offset against your Capital Gains Tax (CGT) liabilities*. For more information, we recommend you seek independent investment advice.

At SVK Markets, we offer low commissions, tight spreads and margins from 1% on over 10,000 financial markets, including indices, shares, currencies, commodities and more.

Our range of trading platforms and Apps for iPhone™, Android, BlackBerry and Windows Phones enable you to instantly react to market prices at any time of the day – even when you’re on the move.

CFD Trading Features

1Hedge your Portfolio
If you believe your existing portfolio may lose some of its value, you can use CFDs to offset this loss by short selling. For example, let's say you hold £5,000 worth of Vodafone shares in your portfolio. You can short sell the equivalent of £5,000 worth of Vodafone shares through a CFD trade. Should Vodafone share prices fall by 5% in the underlying market, the loss in value of your share portfolio would be offset by a gain in your short sell CFD trade. Many investors today use CFDs to hedge their portfolio, especially in volatile markets.
2Offset your Losses*
CFDs can be extremely tax efficient as, depending on your circumstances, you can use any losses you incur to offset against your Capital Gains Tax (CGT) liabilities. For more information, we recommend that you seek independent investment advice.
324-Hour Dealing
We recognise the importance of being able to access your account and trade whenever you want, wherever you are, particularly when market prices are moving quickly. We therefore give you unrestricted access to your account 24 hours day, 7 days a week. Furthermore, we run a number of our markets 24 hours a day, including major indices such as the UK 100 and Wall Street, meaning you can trade CFDs even if the underlying markets are closed.
4Trade on Leverage
CFDs are traded on leverage, meaning you pay only a small fraction of the total trade value to open your position rather than paying for it in full, this is known as margin. For example, you can trade Vodafone shares by depositing a margin of just 5%. Our margins for the UK 100 and Wall Street start at just 0.5%, while margins for our major currency CFDs start from just 0.5%. You can use leverage to magnify your return on investment as your full trade exposure is much more than the initial deposit required for your trade. However, your losses are magnified in exactly the same way if the market moves against you and can lead to losses exceeding your initial outlay. Please ensure you fully understand the risks involved and seek independent advice if necessary. At City Index, we offer a range of risk management tools to help protect your trades against potential losses.
5No Stamp Duty
As CFDs are a derivative product, you don't actually own the underlying instrument. This therefore means that you do not have to pay a stamp duty, enabling you to save 0.5% on the value of each trade. Please remember that tax laws can change and are subject to individual circumstances. CFD trading in the UK is free from stamp duty, with the exception of Irish stocks, which are charged 1% of the notional trade value. This value is, however, refundable if you trade out within 30 days.
6Wide Range of Markets
At SVK Markets, we provide CFDs on thousands of individual markets including shares, indices, currencies, commodities, interest rates and sectors. You can use CFDs to gain instant exposure on all major global markets including the UK, US, Europe, Asia, Australia and New Zealand. Our competitive commissions, tight spreads and margins are some of the lowest in the market, with just 1-point spreads for the UK100, Germany 30 and France 40. See our range of CFD trading markets.

CFD Trading Vs Shares Dealing

CFDs are a popular alternative to physical shares dealing for a number of reasons.

  • Go short - take advantage of falling prices
  • Leverage - gain a large exposure with a small deposit
  • Instant access to over 12,000 markets at any time – trade shares, indices, forex, commodities and more
  • No Stamp Duty*
  • Losses can be offset against profits for tax purposes

Feature

CFD trading

Shares dealing

Ability to go long - take advantage of rising prices

Yes

Yes

Ability to go short - take advantage of falling prices

Yes

 

Ability to hedge - go short and mitigate against potential losses in your shares portfolio

Yes

 

Free from Stamp Duty*

Yes

 

Pay Capital Gains Tax* - CGT to be paid on profits

Yes

Yes

Leveraged trading - gain a large exposure for a fraction of the value

Yes

 

Immediate dealing - instant trading both in and out of a market

Yes

Yes

Access to other asset classes - such as Indices, FX etc

Yes

 

Access to global shares - trade over 12,000 different shares from around the world

Yes

Yes

Receive dividend and interest adjustments

Yes1

Yes

Physical ownership - benefits include the ability to attend AGMs

 

Yes

Apply for an account to start trading