Glossary
Bid
The bid price is the price someone is prepared to pay for the CFDs you are selling.
Offer
The offer price is the price someone is willing to accept for the CFDs you are buying.
Bid - Offer Spread
The difference between the current bid and offer prices. For example if the Bid-Offer Spread is 740p-750p, you would receive 740p for every CFD you sold or pay 750p for every CFD you bought.
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.
Trading CFDs is not the same as conventional share trading, so you need to get to know how they work and their features. So before trading your first CFD you need to understand:
- what markets can you trade CFDs on
- how to make money when you believe prices will rise with longs
- how to make money when you believe prices will fall with shorts
- how margin works
- your maximum exposure and the risks involved
- the impact of dividends and corporate actions on your positions
- the charges which will apply
One of the best ways of getting used to CFDs is to try it for yourself, risk free, using our Simulator. Use this fully interactive and live trading module to buy and sell a selected range of stocks and indices without risking your money.