If you’re an existing trader and are uncertain about the movement of the stock market,
and want to mitigate against this risk, why not try Halifax CFDs. CFD trading allows you
to hedge against your existing share dealing positions by placing an equal but opposite
position to your current investment(s).
Hedging can be used when trading in a volatile market when traders are uncertain about
market movements and want to reduce the risk of losing profit.
What is a CFD?
A CFD is an agreement to exchange the difference in the value of a particular asset from the
opening and closing price of a particular trade, resulting in either a profit or a loss for the trader.
CFDs are traded by placing a margin and, because of this, investors need a small proportion
of the total value of a position to trade. Investors can take long or short positions allowing them to trade on equities, indices, foreign exchange and commodities in both rising and falling markets.
CFDs are a way to trade on share and market price movements without actually owning the
share itself. CFDs are designed for the more experienced trader.
The risks of CFD trading
CFDs are a leveraged product (traded by placing a margin) and it is possible to lose substantially more money than your initial investment. Due to the high risks involved with CFD trading this product is designed for the more experienced trader (where it fits with their personal circumstances).
- You may be required to make further deposits at short notice to maintain open positions.
- You should not open a CFD trading account unless you fully understand the risks involved.
- Due to the risks involved with CFDs it is important you are aware of the Important Information and Key Features of Halifax CFDs.
Key features of CFDs
- Wide variety of CFDs to trade on – take positions on a variety of shares or markets.
- UK Equity CFD trades start from just £15 commission.
- Ability to trade on both rising and falling markets. Find out more about long and short trades.
- To help reduce risk we offer a Guaranteed Stop Loss which enables you to close your
trade on certain CFDs at a set price. A small premium is payable for this service.
We understand that CFDs can seem a little daunting if you have little experience of trading them. That's why there is a vast amount of information to help you get started with CFDs on our site. If you are new to CFDs, then our CFD Trading Academy account is a great
way for you to learn how to trade. With our Trading Academy you can place low stake trades to help build your confidence before dealing full amounts.
You can also try CFDs risk free using the CFD simulator account.
Apply Now for a Halifax CFD Account
Halifax CFDs is provided by City Index Ltd and therefore your contractual relationship is with City Index. City Index Limited is authorised and regulated by the Financial Conduct Authority (FSA Register Number 113942).