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CFDs

CFDs can be contracts with a share, stock index, bond, interest rate, commodity or foreign currency as the underlying market.


CFDs are one of the fastest growing financial instruments. Fast to trade, instant settlement, no Stamp Duty, low commissions are just a few of the reasons why. The CFD industry for the retail investor really started late in 1999 during the Tech Boom. At that time there were only a handful of brokers offering CFDs, now there are a much larger number.


The problem facing the retail investor is mainly which broker is best for them. All of the brokers have their own specialities and it depends on knowing what these are to ensure you get the best deal. Where we fit in is as an independent specialist who can advise you on which broker is right for your needs, handle all the paperwork and ensure that you pay the keenest rates in the market.


CFD or Contract for Difference is an agreement between two parties to exchange, at the close of the contract, the difference between the opening price and the closing price, multiplied by the number of reference shares specified within the contract. The 'reference shares' are the underlying shares specified in the CFD. The economic performance of a CFD is determined by the performance of the underlying reference shares. CFDs can be contracts with a share, stock index, bond, interest rate, commodity or foreign currency as the underlying market.


Although CFDs replicate the price movement of the underlying reference shares, they convey no right or requirement to acquire or deliver the physical shares. The contract value of a CFD is defined as the number of reference shares specified in the contract, multiplied by the price of the underlying reference share.


If you take a long position (link: /tradingexamples), you will make a profit if the contract value increases. Conversely, if you take a short position (link: /tradingexamples), you will benefit if the contract value falls. You can, therefore, profit from both rising and falling share prices. It is important to note that CFDs are a margined product and as such are not suitable for all investors. Due to the leveraged nature of the product you may lose far in excess of your initial investment.


These include:


•Flexible - trade long and short

•Leverage

•No Stamp Duty or Taxes on US, Asian and European Shares - deposit between .5% and 10% to hold a position.

•Risk Control - Stop, limit, OCO and If Done orders are available.


A standard account can give you access to stock indices, Oil, Gold, Silver, and of course a wide range of shares.  You can manage your risk using Stop Loss and Limit orders .We also provide  Trailing Stops , Entry orders and much more.


Pulse provides the complete trading solution. You can trade CFDs on all the leading European markets, US, Asian and Emerging Markets stocks.


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