CFD Centre - Comparison Table

Contracts for Difference (CFDs) are derivatives that enable investors to lock-in large gains from rising or falling prices without the need to own the underlying asset. Conversely, by trading these financial instruments, you run the risk of losing substantial sums should a trade fail to move in the direction you expect.  CFDs are part of the increasingly popular ‘derivative’ range of investments, so called because their value is ‘derived’ from an underlying investment. In brief, a CFD is an agreement between a buyer and seller to exchange the difference in the current value of a share, currency, commodity or index and its value at the end of the contract. Should the difference be positive, the seller pays the buyer. If the difference is negative, the buyer is the one who loses money.  If a trade has a 10% margin, a deposit of £1,000 would allow exposure to £10,000 worth of shares, which means the potential percentage gains are far larger than if one were to merely purchase a share outright - and so are the losses. CFD trading is not suitable for all investors, carrying a high level of risk to capital and the potential for quickly losing more than your original investment.  Finding a provider which offers adequate levels of training and risk-aware advice, as well as ongoing support, is vital.