CFDs - Contracts for Difference

Contracts for Difference (CFDs) or contracts for differences are a derivative product designed for  traders who want to have extra leverage in their share trading.

Instead of paying for share trades in full, the CFD trader deposits a 'margin' with a broker like Blue Index and that deposit or margin will go up or down in line with the rise and fall of their share portfolio. In effect, the trader is able to speculate with more capital that he actually has by borrowing money to purchase a larger amount of shares. If his shares perform well, he can win quicker than if he was not trading on margin. If they perform poorly, the broker will demand more margin payments (this is a margin call).  With any derivative like CFDs where the underlying is traded on margin the the trader may could lose more than their initial investment so care must be taken to limit downside with the use of stop losses.

Contracts for difference - CFDs, or margin share trading, are risky, and not for novice traders. Most brokers do not offer a CFD service, however Blue Index specialises in trading CFDs (contracts for difference). We will provide you with an unbiased personal trading service giving you as much or as little advice and monitoring as you require.  We can offer both a phone and online trading service as well as access to leading technical analysis and research exclusive to Blue Index clients.

Please call us on 020 7398 2555 for more details about trading contracts for difference (CFDs) and opening up an online CFD trading account with Blue Index, the CFD trading specialists.