CFD trading

What is CFD trading?

A Contract for Difference, or CFD, is "An agreement between two parties to exchange the difference in value of a particular market, between the time at which the contract is opened and the time at which it is closed."

CFDs can be traded on UK, European, US and Asian stocks, indices, commodities and bonds.

With CFD trading, you can choose to decide that the market will rise, or fall. If you predict correctly and the market moves in your favour, you will make a profit of your CFD size multiplied by each point that the market moves. If you are wrong you will make a loss of your CFD size multiplied by each point that the market moves against you.

With CFDs you do not actually own the underlying asset that you are trading because it is a derived instrument. The prices that we provide you are derived from the underlying asset and these prices move in conjunction with that underlying asset.

Margin Products carry a high degree of risk to your capital. Losses can quickly and substantially exceed your initial investment. You may need to make further margin payments. Margin Products are not suitable for all investors. You should fully understand the risks and seek independent advice if necessary.

 

CFDs trading at a glance

CFDs can be sold short, offering new trading opportunities in falling markets, and used to hedge risk in existing Stock positions

  • Leverage CFD investments up to 20 times by trading on margin. Leveraged instruments carry a high degree of risk to your capital. Losses can quickly and substantially exceed your initial investment. You may need to make further margin payments
  • Choose from over 7000 stocks CFDs, Commodity CFDs (inc Oil, Gold and Silver), and Index Tracking CFDs
  • There is no Stamp Duty to pay on any purchases of CFDs
  • UK Level 2 data is FREE (terms apply) for customers subject to four trades being completed during the month
  • Place orders directly on the London Stock Exchange order book with Direct Market Access (DMA)
 

Trading CFDs with TD

TD Derivatives Trading offers CFD trading with access to over 7,000 CFDs on 27 different exchanges, including Index Tracking CFDs. The following types of CFDs are available: Stocks CFDs, Index Tracking CFDs and Commodity CFDs.

CFD Direct Market Access with TD Derivatives Trading

Our downloadable trading platform, TD Derivatives Professional, offers you Level 2 data and Direct Market Access (DMA).

Level 2

We are offering a free 30 day trial of Level 2 (terms apply), which allows you to view the London Stock Exchange order book and place CFD orders directly with our Direct Market Access (DMA).

Level 2 terms

1. Your 30 day free trial is activated upon confirmation your account is open
2. To continue access to Level 2 you must place a minimum of 4 CFD trades within the initial 30 days and then within each calendar month thereafter
3. If you fail to place 4 CFD trades in the specified periods above, access to Level 2 will be withdrawn
4. Access can be reinstated once 4 CFD trades have been placed in the relevant period, or at the discretion of TD
5. TD retains the right to refuse access to Level 2
6. TD may withdraw access or change the terms to this service by giving 10 business days notice

DMA

DMA provides direct access to the exchange order book and allows you to place trades directly around the live market depth and join the current ‘yellow’ touch price to buy at the Bid price or sell at the Offer price.

Dealing CFDs on live market prices requires an exchange subscription agreement for each of the exchanges you want to trade.

Trade at the current market price when the order hits the market (market orders).

CFDs are leveraged instruments and as such carry a high level of risk to your capital. Losses can exceed initial payments and you may need to make further margin payments.

Index Tracking CFDs with TD Derivatives Trading

Index Tracking CFD trading allows you to benefit from a diversified investment tool which combines leverage, low costs and ease of trading. Index Tracking CFDs offer customers the opportunity to engage in CFD trading against an entire index on real-time prices with just a single click.

  • Index Tracking CFDs are linked to the performance of a stock market index
  • Leveraged trading means maximum exposure with minimal capital requirements. Please note that leveraged instruments carry a high level of risk to your capital. Losses can quickly and substantially exceed your initial investment. You may need to make further margin payments.
  • Access to Index Tracking CFD trading opportunities across more than 20 exchanges worldwide, all with a single click
  • Competitive Bid/Ask spreads with no additional commissions
  • Trade Index Tracking CFDs for convenient one-click access to global stock market investing

Commodity CFDs with TD Derivatives Trading

Commodity CFDs are an easy way for you to trade in the commodity markets. Offering traders direct exposure to the underlying commodity, our Commodity CFD offering makes investing in oil, grains, softs, energies, gold and other precious metals as simple as trading any other CFD instruments. With all the features commonly associated with CFD trading, Commodity CFDs represent a simple alternative to trading commodities on the Futures exchanges.

  • Trading on margin – from 5%
  • Please note that leveraged instruments carry a high level of risk to your capital. Losses can quickly and substantially exceed your initial investment. You may need to make further margin payments.
  • Accessible pricing - easy-to-understand single-unit pricing
  • One-Click fast efficient trading - Commodity CFDs one-click trading system is designed to facilitate the placing of trades
  • Simplified trading - simple cash settlement in line with the underlying Future
  • Diversify your portfolio - easy portfolio diversification and new hedging opportunities
  • Selling short - Commodity CFDs are fully supportive of short selling.

TD Derivatives Trading is provided by Saxo Bank A/S. Saxo Bank A/S head and registered office is Saxo Bank A/S, Philip Heymans Alle 15, 2900 Hellerup, Denmark. For the purposes of derivatives trading, any contract is between you and Saxo Bank A/S and all dealing, administration and settlement is carried out by them. Your account is held with Saxo Bank A/S, which is incorporated in Denmark as a licensed bank (license no. 1149) and is regulated - along with Saxo Bank A/S London Branch - by the Danish Financial Supervisory Authority (FSA) - Finanstilsynet, Aarhusgade 110, 2100 Copenhagen, Denmark. Further details regarding the Danish FSA and Saxo Bank's license may be viewed at www.ftnet.dk

Start Investing in Derivatives

Start building your portfolio today with the TD Derivatives Trading account.

Risks

  • The value of your investments can go down as well as up. You may not get back all the funds that you invest.
  • Margin Products carry a high degree of risk to your capital. Losses can quickly and substantially exceed your initial investment. You may need to make further margin payments. Margin Products are not suitable for all investors.
  • You should fully understand the risks and seek independent advice if necessary.


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