CFDs

CFDs & Stocks

Welcome to online CFD trading

Investors are increasingly looking to Contracts for Difference (CFDs) as a more flexible method of trading stocks online.

CFD trading is carried out on live prices on Saxo Bank’s online trading platforms, without the delays of normal stock trading, such as waiting for fills from the stock exchange.

Advantages of CFD trading:

  • CFDs can be short sold, opening up the possibility of showing a profit in a falling market and efficient hedging of current Stock positions
  • Online CFD trading allows for investments to be leveraged up to 20 times. This is also known as trading on margin or margin trading, something that also increases risk
  • CFD pricing is streamed directly to one’s desktop giving instant fills and often deeper liquidity
  • Get instant exposure to global stock markets using Index Tracking CFDs with a single click. Index-tracking CFDs, or Index trackers, are linked to the performance of a stock market index and can be traded both long and short.

Flexible online trading with CFDs

With Saxo Bank, clients gain access to online CFD trading in all major US, European and Asia/Pacific Stocks, as well as Index-tracking CFDs that follow major global indices. Online CFD trading is versatile method of trading in bull and bear markets, allowing hedging of current Stock investments and even the potential for profit in a falling market. CFDs can be ‘shorted' or ‘sold short’ - so if a trader thinks a particular Stock or stock market index is set to drop, they can, in effect, ‘sell' it, and turn a profit if the market moves the way they expect.

Additional benefits of online CFD trading with Saxo Bank:

  • Build a diverse, multi-product portfolio on one account – add CFD trading to FX, Stocks, Options and Futures for an ideal investment mix
  • Trade more than 8300 different CFDs and nearly 21 Index-tracking CFDs across over 23 exchanges worldwide
  • Manage positions across multiple currencies with ease from a single account
  • Total transparency is achieved by trading CFDs on clean exchange prices
  • Alternatively trade CFDs on an exchange DMA basis from over 15 major exchanges.

LEARN TO TRADE WITH TRADEMENTOR

Learn to trade Forex and CFDs with TradeMentor webinars, a series of online seminars hosted by professional trader and CNBC regular Tom Hougaard. Available at any time through the WebTrader platform, these exclusive tutorials will guide you through the basics of Forex and CFD trading, technical analysis, handling trading fears and creating your own trading strategy;

 

Play video


  • CFD Trading - Introduction to CFDs (Contracts for Difference)




  • Risk Warning

    Margin Trading carries a high level of risk to your capital with the possibility of losing more than your initial investment and may not be suitable for all investors. Ensure you fully understand the risks involved and seek independent advice if necessary.

    Read more