HOW TO TRADE CFDs

CFDs provide versatile access to the financial markets.

You can trade on a market to go up (known as 'buying' or 'going long'), or you can trade on it to go down (known as 'selling' or 'going short').

Trading a CFD

Here is a step-by-step guide to placing a basic stock index CFD trade with no stops or limits.

Select a market. In this example you are trading on the movement of the FTSE 100. You click the name of the market to open a deal ticket.

Choose the size of your position in contracts. Each FTSE® 100 contract is worth £10. The value per contract varies between markets.

Decide if you think the price will fall or rise.

Click the 'Buy' or 'Sell' button to confirm your trade and open your position.

Monitor your position. Most CFDs have no expiry date,
so you can close your trade at any time.

Close your trade. Open your deal ticket from the ‘Open Positions’ window. Click ‘Sell’ if you originally went long. Click ‘Buy’ if you went short. By performing the opposite action, you close your trade.

Ways to place a CFD trade

  • Online: open, manage and monitor positions on our CFD trading platform
  • Mobile: trade on your smartphone with our free CFD trading apps
  • iPad: switch between multiple charts and trade on our tailored iPad app
  • Insight centre: analyse, research and develop your CFD trading
  • Phone: speak directly to our dealing desk

Understanding the risks of CFD trading

If you buy a financial asset such as a share, you gain exposure to its upward and downward movements.

When you trade CFDs, you provide a deposit to gain full exposure to the underlying asset’s movements.

This means it is possible to lose more than your initial deposit when you trade CFDs. Before you begin, it’s important to understand the potential risk and how we can help you manage it.

If you're ready to start CFD trading, create an account to get started.

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CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.