Close

Your feedback is important to us!

How would you rate our site on a scale of 1 to 5, 5 being the highest and 1 being the lowest?

  • 1
  • 2
  • 3
  • 4
  • 5

Please enter your feedback in the box below and tell us what you think !

Refresh

Trading & Products

CFD TRADING

A Contract for Difference, or CFD is an accessible and popular form of derivative trading. CFDs are free from stamp duty, and allows traders to go long or short on various financial markets. These include: Forex , indices , cryptocurrencies and commodities.

For more information on our commodity offerings, click here.

About CFD Trading

You can trade on margin with CFD trading, and speculate on the price falling or rising (going long or short). This means that you speculate on the difference in price of a financial market (when the contract opens and closes). The profit/loss result is dependant on whether you are correct in your speculation.

With CFD trading, you buy or sell a number of units of a financial instrument - depending on which direction you believe the price will move. For each point the price of the instrument moves in your favour. For every point the price moves against you, you will make a loss, and visa versa.

You can use a CFD to gain exposure to a much larger position than you can with a standard trade. This is possible through leverage, with leverage you are able to agree to exchange the difference in price of a larger asset without committing to the full cost of the position.

It’s important to remember that when trading CFDs with GKFX, your losses may exceed deposits, and it is recommended that you emplore a high level of risk management when trading with leveraged products.

CFDs are tax efficient in the UK and they can be used to hedge an existing portfolio. GKFX offers CFD trading on a range of global markets, including currency pairs, commodities., cryptocurrencies and indices.

For more information on CFD Trading, and our Top Ten Mistakes made in CFD Trading, download this Ebook below:

GOING LONG OR SHORT

With CFD Trading, you’re able to open a position that will increase in value as the underlying market decreases in price. This is called ‘selling’ or ‘going short’.
The same goes for ‘buying’ or ‘going long’ except in reverse.

HEDGING WITH CFD TRADING

Trading with CFDs allows you to short sell, which means you can make a profit from falling market prices.
Investors can use this to offset losses made in their portfolios.

Example:

If you hold £10,000 of Apple shares and you believe they’re about to sell-off, you can try to protect your share portfolio by short-selling £10,000 of Apple CFDs.

If the Apple share prices fall by 10%, the lost value of your share portfolio would be offset by a gain in your short sell CFD trade. This means you able to protect yourself without liquidating your stock holdings. Which could incur costs and a possible tax liability.

Is CFD trading right for you?

CFD trading is best suited to investors that want to try and create a better return for their money. However, it comes with considerate risks to your capital, and is therefore not suitable for everyone. It’s advised to try CFD trading on a demo account, where you trade with virtual money.

WHY TRADE CFD TRADING?
THEY’RE LOOKING FOR SHORT-TERM TRADING OPPORTUNITIES CFD trades are usually held open for a few days - sometimes weeks.
THEY’D LIKE TO DIVERSIFY THEIR TRADING PORTFOLIO The variety of products offered in CFD trading makes it more straight-forward
THEY CAN CHOOSE A CERTAIN PRODUCT TO INVEST IN CFD trading allows you to choose from various global markets, and various products
CFD TRADING IS FLEXIBLE Trading CFDs means that you can trade as little/often as you please

GKFX is a registered trademark of GKFX Financial Services Limited © 2017 GKFX Financial Services Limited – all rights reserved.

RISK WARNING

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81.75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. See our full Risk Warning and Terms of Business for further details.

Apple, iPad, and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Android is a trademark of Google Inc. 

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81.75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. See our full Risk Warning and Terms of Business for further details.

81.75% of retail investor accounts lose money when trading CFDs with this provider.