CFD Trading
Try CFDs for yourself, risk free, using our simulator:
Risk Warning:
Your investments and any income from CFDs can go down as well as up. You can quickly lose more than your initial deposit. Please make sure you understand the risks. CFDs may not be suitable for everyone.
If you hold an open CFD position, you may need to make an additional margin payment. Our Terms cover this in detail and you should make sure you’re happy with how margin payments work before buying or selling a CFD.
Here is an example as a guide:
| You buy 1000 equity CFDs in XYZ plc when they are trading at 1043 pence | |
| Price of XYZ plc CFDs | 1043 pence |
| Number of CFDs | 1,000 |
| Notional value of CFDs | £10,430.00 |
| Commission @ 0.20% | £20.86 |
| Margin Requirement (10%) | £1,043.00 |
In this example the Margin Requirement is 10%. This means you need to provide an initial margin of £1,043 to your margin account.
At the end of day one the price of the CFD has fallen to close at 857 pence, so the value of the CFDs has fallen to £8,570.00, meaning you are losing £1,860.00. This loss is deducted from your margin account, but since it only holds £1,043.00, you need to pay another £817.00 to cover the loss.
| In addition, you are still required to keep 10% (the Margin Requirement) of the value of the CFD in your margin account | |
| Value of CFD at end of day one | £8, 570.00 |
| Margin Requirement (10%) | £857.00 |
| So at the end of day one the additional margin required will be £1,674.00 (£817.00 to cover the loss, plus £857.00 to maintain the 10% Margin Requirement). |
Important points to note
Please be aware that each individual position you hold has a Margin Requirement. You must maintain the Margin Requirement percentage, in addition to any losses on the CFD.
For margin calls over £10,000 Halifax CFDs need to receive the funds on the same day by electronic transfer. For calls under £10,000 Halifax CFDs may contact you to arrange payment.
Failure to pay margin calls may result in positions being closed. You will be liable for any outstanding losses.
If you are going on holiday or will be away from your normal contact details whilst running open positions, please let Halifax CFDs know. It is important that Halifax CFDs can contact you in the event of any margin calls.
Please note that Halifax CFDs normally make margin calls by phone. It is Halifax CFDs policy not to disclose our company name or the nature of the call (except that it is a personal call) when attempting to contact you by phone. However, Halifax CFDs reserve the right to leave a detailed message including the company name should Halifax CFDs wish to do so.