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Ability to Go Long or Short
CFDs (contracts for difference) trading allows investors the ability to go long or short and the opportunity to make money in a falling market without the need to put up large amounts of capital, making them a more flexible way of investing. CFD trading is often used for speculative purposes. CFDs can be used to speculate on the future movement of market prices whether the price of the underlying product is rising or falling. If you believe the price is going to fall you can go short and sell the CFD and thereby benefit from falling prices if your prediction was right. Please see the following example of a CFD trade:
If you believe that the UK 100 will rise in value you can request a price using your online trading account via the Hantec Markets MT4 trading platform. You will see the spread e.g. 5293.5-5294.5 points, and you then buy at 5294.5 for an amount (the minimum amount with Hantec Markets is 1 CFD). This is equivalent of £1 per point movement of the index. If the price moves up to 5394.5-5395.5 and you sell at 5394.5, you would realize a 100 point profit of (the price you sell for 5394.5) minus (price you bought for 5294.5). As you have placed a 1 CFD trade, you would make a profit of £100 (£1 multiplied by 100). Please bear in mind had the market fallen in value you would have incurred a loss of (opening price – closing price x CFD amount).
CFDs are leveraged products that allow you to trade while only paying a fraction of the total value of the contract. When you trade a leveraged product, you can potentially magnify your return on investment. But with great potential returns also comes greater risk. The higher leverage can result in losses that could exceed your initial deposit.
Range of Markets
Investors can use CFDs to gain instant exposure to major global markets including the UK, US, Europe and Asia. See our range of CFD trading markets.
Competitive Spreads and Commissions
At Hantec Markets we pride ourselves on having some of the lowest commissions and tightest dealing spreads on CFD FX in the market, whilst maintaining our quality service. We strive to differentiate ourselves from other CFD brokers by offering the best online CFD trading platform.
Low Margin Requirements
CFD traders can benefit from some of the lowest margin requirements in the industry, meaning customers will only have to deposit a small percentage of the total notional value of the trade when looking to open new positions.
At Hantec Markets we recognise the importance of clients being able to access their account and trade whenever they want, wherever they are, particularly when market prices are moving quickly. We therefore provide our clients unrestricted access to their account 24 hours a day, 5 days a week via the mt4 software available for download.
Superior Customer Service
When you open a CFD trading account with Hantec Markets foreign exchange brokers, you are serviced by a professional and dedicated multilingual team who speak more than 15 languages and who will do everything in their power to enhance your CFD and forex trading experience. So why not download one of the most user-friendly CFD trading platforms out there and test your CFD trading strategies? We offer CFDs on Oil and indices.
Authorized and Regulated Broker
Hantec Markets Limited is a FCA regulated company (Registration No. 502635). Your funds are in segregated accounts and you are covered by the Financial Services Compensation Scheme.
Risk Disclaimer :
Trading FX and / or CFDs which are leveraged products can result in losses exceeding investment, therefore, you should not risk more than you are prepared to lose.
Before trading you should completely understand the risks involved and be aware that these products are not suitable for everyone.