Private Client Services

CFDs (contracts for difference) enables you to speculate on the rising or falling prices of fast-moving global financial markets, such as forex, indices, commodities, shares and treasuries.

A CFD is a leveraged ‘derivative’ financial product. CFDs are derivatives because their value is derived from the value of another asset (for example, a share, commodity or market index). When you trade CFDs, you take a position on the change in value of the underlying asset over time. You are essentially betting on whether the value of an underlying asset is going to rise or fall in the future compared to what it was when the contract was taken out (or executed).

CFDs enables you to trade both ‘long’ and ‘short’

‘Going long’ means buying a CFD in the expectation that the underlying asset will increase in value.

‘Going short’ means selling a CFD with the expectation that the underlying asset will decrease in value.

In both cases, when you close the contract, you hope to gain the difference between the closing value and the opening value.

CFDs have become an increasingly popular product amongst investors attracted by their many advantages. However, whilst margin means you can potentially magnify your investment returns, it can also lead to losses exceeding your initial deposit.

With CFDs you can...

Broaden your portfolio

Enabling you to invest in new asset classes or financial markets

Protect your portfolio

Enabling you to hedge your portfolio to offset any potential loss in the value of your physical investments.

You will benefit from...

Margin Trading

You can trade using margin, which gives you ‘leverage’. This means you can trade without having to put down the full value of a position and as your money is not tied up in one transaction, you can use it for other investments.

No Stamp duties

As you are not purchasing the actual underlying assets, you are not subjected to the high cost of stamp duties. As compared to the traditional equity market, you will achieve a saving of 0.5% for not having to pay this transactional cost.

Trade on Both, Rising & Falling Markets

With CFD trading, you can profit from falling or rising markets by trading long or short. Just trade on the price of a product going down as well as going up, so you can try and benefit from selling opportunities as well as buying opportunities.

Commission Charges

Typically, lower commission rates compared to traditional equities.

Trading of Shares & Indices

Trading CFDs allows you to have holdings in shares and indices without buying the actual asset. Trading in currencies and other market sectors are also possible, CFDs also permit you to have a wider choice as to the type of investment that that you wish to invest in.

Manage your Risks

You can limit & Manage your risk using a Stop Losses orders.

Products

We offer a range of personalised services to allow you to invest across a range of products including shares, investment trusts, unit trusts, corporate and government bonds.


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First Equity Limited is a member of the London Stock Exchange. Authorised and regulated by the Financial Conduct Authority
(FCA No. 124394)

 

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