What is CFD Trading?
Contracts for difference (CFDs) allow you to open a contract for the difference in price of an asset, from the point of opening to when you close.
- Importantly, CFDs are a leveraged product. This means you only have to put down a small deposit for a much larger market exposure.
- Leverage comes with significant benefits and risks: your investment capital can go further, but you can also lose more than your initial deposit.
CFD trading allows you to take a position on the future value of an asset whether you think it will go up or down. While this means the product is very flexible, it also requires a high level of risk management.
It's important to remember you're trading contracts with IG, not physically trading in the underlying market. This means you don’t actually own any assets.
What markets can I trade in?
There a huge amount of options for CFD traders. Markets include:
- Indices - FTSE 100, Wall Street, Germany 30 and others
- Shares - UK and international shares
- Forex - major international currencies can be traded
- Commodities - Trade on gold, silver and oil and dozens of other markets
- IPOs - take a position before and after key initial Public Offerings
- Other markets - bond sectors, interest rates and other markets