What is the maximum contract value?ere maximum opening Contract Value?
Only the cash in your account available to meet the Margin requirement and the ability of the broker to deal in the underlying shares limits the maximum Contract Value.

Is there a minimum contract value?

In principle there is no minimum opening contract value and you can execute trades at any level, although in practice in order to get the most out of the leverage effect that CFDs provide the normal smallest contract value for CFDs is around £10,000.

What is the minimum account opening requirement?

£5,000 (or other currency equivalent) is required.

How long can you hold a CFD for?

There are no expiry dates on CFDs, as a result you can run a position, long or short, for as long as required.

What are the Tax implications?

Whilst they are exempt from stamp duty, any profits on CFDs may be subject to CGT (Capital Gains Tax) but losses may also be offset against CGT.
 

Who can trade CFDs?

CFDs are only suitable for investors with sufficient experience and knowledge. Experienced investors will be registered as intermediate customers under FSA classification. As an intermediate customer you waive the protections provided for private customers and you must sign a copy of the Equitrade Markets intermediate customer notice which we will send to you.

What is margin?

As a holder of a long or short CFD you do not pay the full underlying value of the contract. However, you are required to deposit margin as collateral known as initial margin. Initial margin is calculated as a percentage of the full contract value and the rate varies according to the market capitalisation and volatility of a particular share. For example if the initial margin is set at 5 % you can go long or short of a CFD worth £100,000 and deposit just £5,000, gaining twenty times leverage.

Commission
Commission is charged on for either side of the contract, as a percentage of the total contract value. There are no hidden costs and you deal at the market price as we do not widen the spread of the share. Our commission rates are highly competitive and we would ask you to click the 'instant quote' button in the menu column, to find out just how competitive we are.

Financing
Clients pay interest on the contract value of a long CFD. Interest is charged at a percentage over LIBOR (LIBOR is the London Interbank Offered Rate and is linked to base interest rates).

Clients holding short CFD contracts receive interest on the cash that the sale of the underlying stock would have generated. This is similarly paid at an agreed rate under LIBID (London Interbank Bid Rate).

For example, If a client was paying a long CFD funding charge of perhaps 2 % over LIBOR and if LIBOR was 4 %, the client would be paying a funding rate of 6 % per annum. If the total contract value was £100,000 the funding charge would be around £16 for every day the contract was maintained (£6,00 divided by 365). This amount would be debited daily from your CFD account. The funding charge is only incurred if the position is held overnight. These amounts will be credited or debited on the next trading day.

Warning: Trading Contracts for Differences (CFDs), Futures and spread betting carries a high level of risk to your capital, and is not suitable for all investors. Only speculate with money you can afford to lose. Trading or placing any bets can result in consumers incurring liabilities in excess of their initial stake. Please ensure you fully understand the risks, and seek independent advice if necessary.  Equitrade CFDs is a trading name of Equitrade Markets Ltd, a company authorised by the FSA to provide advice on spread betting, CFDs, futures. options and rolling spot foreign exchange.

CFD Advisory Services - Execution Only Dealing - Open an Account - Research - Job Opportunities - Corporate Services