CFD's

Contract For Difference's

CFDs are suitable for financial speculation and allow traders to benefit from market movements. You can go long (buy) when you expect a rise in market prices, or go short (sell) when you anticipate a fall in market prices, and increase your profits in line with the price falls.

CFDs (Contracts for Difference) are based on a two-party agreement (between buyer and seller) to exchange the difference between the opening and the closing price of a financial instrument according to specific conditions. CFDs are trading instruments suitable for speculation on several financial instruments, including equity indices, energies, commodities and metals without actually owning them. About CFDs CFDs are suitable for financial speculation and allow traders to benefit from market movements. You can go long (buy) when you expect a rise in market prices, or go short (sell) when you anticipate a fall in market prices, and increase your profits in line with the price falls. In anticipation of potential loss in your portfolio value, CFDs can be used to offset loss by going short. Especially in volatile markets, portfolio hedging is a great advantage of CFDs.

Supposing you have IBM shares worth USD$10,000, for instance, you can sell the USD$10,000 equivalent of these shares through a CFD trade. In case IBM prices have a 10% fall in value in the market, the loss in value of your shares can be balanced by the gain in your CFDs. As leveraged products, CFDs mean potential return on investment through high leverage. They enable you to open your position by paying only a small fraction of the total contract value. However, the market can move against you and potentially increase your losses. This is why CIB provides 24/5 client support and professional risk management advice for clients who trade CFDs.

Share CFDs

Trading without actually owning the financial instrument on which the contract is based
Instant exposure to global economies
Speculation on future uptrend/downtrend market price movements
Ideal also for beginner traders due to low deposits
Going short and even gaining profit from falling prices
No commissions or extra fees
Portfolio hedging for risk management

(CIB) offers the following Index CFDs:

Dow Jones Industrial Average Index
S&P 500 Index
CAC 40 Index
DAX Index
Nasdaq Index
FTSE 100 Index
Nikkei 250 Index

Trading Hours
Index CFDs are traded during the same hours that the underlying assets are traded.

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Advantages with CFD's

You can take both short and long positions with the same ease when trading CFDs. The margin requirements for taking a short position are the same as the ones for taking a long position and there are no additional selling rules if you want to go short.

Trading CFDs is far less costly than trading the underlying stock, index or futures contract and can still deliver the same gains.
High leverage is one of the main advantages of CFDs because it increases a trader's buying power and gives them the potential to make bigger trades by depositing a small initial amount.
Execution is instant so your trades are executed with no delay and there are no interferences in your transactions.
When trading CFDs you can profit even at times when the market is falling because you hold the great advantage of being able to take a short position.

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