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 judgment 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:
Stamp Duty
Unlike traditional share trading CFDs incur no stamp duty on UK Shares.
Access Global Markets
CFDs allow you to trade on a large array global instruments all from your account. Trade on Equities, Forex, Indices, Commodities, Interest rates and bonds
Leverage
You can open a position without having to put up the full underlying value. Instead you put up a deposit or margin. Learn more about Margin and Levarage.
Profit from Falling Markets
You can buy or sell any share that we quote, to profit from rising or falling prices.
Immediate dealing
You can trade in seconds, there is no wait for an execution. Alternatively you can call our dealing room which is open 7.00-21.15 (Monday- Friday) to execute the trade.Learn more about our Trading Platform.
Interest and Dividend Adjustments
CFDs have no fixed expiry date, giving you the freedom to close your position when you choose. While your position remains open, your account is debited or credited to reflect interest and dividend adjustments.
Long positions
Your account is debited to reflect interest adjustments and credited to reflect any dividends. This mirrors the effect of buying shares in the normal way, where you no longer earn interest on the cost of the shares, but do receive dividends
Short positions
Your account is credited with interest adjustments and debited to reflect any dividends. This mirrors the effect of selling shares, where you earn interest on the proceeds of the sale, but cease to receive dividends.
Settlement is instantaneous
On the closure of a trade, settlement into your account is instantaneous. Your account is immediately credited/debited and you are issued a email trade confirmation. There are no share certificates to be dealt with, no complicated paper trails, and you don't have to wait for your money.