A Contracts for Difference (CFD) is an agreement, between you and Delta Index, to exchange the difference in the value of a particular share between the time at which the contract is opened and the time at which it is closed.
Using a Contracts for Difference you can make a profit by using your own judgement and knowledge to predict whether the price of a contract is going to go up or down, and trade on this movement. Unlike traditional share trading you do not have to take ownership of the underlying asset (such as the share) and you are only required to put up a proportion of the funds to trade against to the total value of your position.
Some of the key benefits of CFD trading are:
- Leverage- a small amount of capital gives you exposure to a much larger position.
- You can still make a profit in falling markets by taking a short position- provided that you predicted the markets were going to fall rather than rise.
- Range of products - our portfolio gives you access to European and American equities, indices and commodities.
- Cost effective the only charges in trading CFDs are competitive commission rates and an overnight financing charge to cover the cost of your leverage.
Click here for a simple example of a CFD trade