CFD trading.

A CFD (Contract for Difference) is a leveraged derivative product that lets you speculate on the price movements of markets such as shares, indices, forex, commodities and cryptoassets without owning the underlying asset. Your profit or loss depends on the difference between the price when you open the position and the price when you close it. CFDs are complex instruments and are not suitable for everyone

You choose a market and decide whether to go long (buy, if you expect the price to rise) or short (sell, if you expect it to fall), then select a position size. If the market moves in the direction you expected, you may make a profit, and if it moves against you, you make a loss. The difference between the buy and sell price is called the spread, and it is a cost of opening a position.

Leverage means you only put up a fraction of a position’s full value, known as margin, but profits and losses are calculated on the full position size. This magnifies both gains and losses, so losses can be significant and can exceed your initial margin. Tools such as stop-losses may help manage risk but don’t remove it, and a stop may not execute at your chosen level in fast-moving markets.

The main cost is the spread. Depending on the market, other costs may apply, such as overnight funding charges for positions held open past market close, commission on certain products, and premiums for guaranteed stops.

CFDs and spread bets both let you speculate on price movements using leverage, but a CFD is priced per unit of the underlying market, while a spread bet is priced per point of movement. The key practical difference for UK clients is tax treatment (see question 6). Unlike buying shares directly, a CFD doesn’t give you ownership of the asset, so it doesn’t come with shareholder rights such as voting.

Profits from CFD trading may be subject to Capital Gains Tax, and losses may in some cases be used to offset gains. Stamp duty is generally not payable on CFDs because you don’t own the underlying shares. Tax treatment depends on individual circumstances and may be subject to change. Seek independent advice.

Spread bets and CFDs are leveraged. You only need a fraction of the position to trade, but profits or losses can exceed your initial deposit. You can set automatic stop-loss orders to limit losses and take-profit orders to lock in gains when the market moves your way.

Yes, Positions may be closed automatically, leaving a negative balance.

How we help: FCA regulations protect you with negative balance protection. We reset negative accounts to zero at no cost, so you're never overexposed.

Why this happens: Small fees apply to keep positions open past 10pm UK time.

How we help: You can trade CFD futures to avoid overnight fees while keeping control of your positions, though spreads may be slightly higher.

Why this happens: Your account needs enough margin to maintain trades. Insufficient funds can trigger automatic closure.

How we help: Balances are always visible in our platform or app, with notifications if you're on a margin call, keeping you in control.

Why this happens: Markets move fast and unpredictably in response to events or trader behaviour.

How we help: Stop-loss orders, including guaranteed stops, can help limit losses. Price alerts keep you informed so you can act fast.

Why this happens: Leveraged trades don't give you ownership of the assets, so you have no dividends or voting rights.

How we help: Buy shares outright through our share dealing platform to access dividends, voting, and over 12,000 shares and ETFs