The leveraged nature of Contracts for Difference means you can magnify your gains (and losses) compared to non-leveraged trading.
You can go long and short with CFDs, allowing you to profit from all market conditions giving you maximum market agility.
User-friendly trading platforms with many features.
Outstanding customer support in 15 languages. Hantec Global Ltd. is regulated by the FSC.
Clients can enjoy uninhibited access to their accounts at all times via the MT4 platform allowing you the freedom to react to dynamic markets.
Take advantage of some of the lowest spreads available, and negotiable commission rates.
CFDs allow traders to go long or short, regardless of the market conditions. This makes them much more flexible, compared to traditional investment strategies. CFDs are often used for either hedging or speculative purposes offering traders the ability to protect themselves against the future movement of the market.
Leveraged CFDs mean you can trade while only holding margin relative to a smaller percentage of the total value of the contract. This means your gains (and losses) are magnified. Please note, the higher the risk the higher the chance losses could be greater than your initial deposit.
Use CFDs to gain exposure to a wide range of markets, including equity indices, and commodities.
Gains from CFDs are eligible for Capital Gains Tax as unlike Spread Betting it is not regarded as gambling. However any losses incurred through the trading of CFDs become tax deductible.
Deposit only a fraction of the total contract value, and profit from the same market movement. For example, if you want to trade a CFD with a value of $1,000, and you have 2% margin, then you only need to have $20 in your account.
It is advisable for inexperienced traders to use smaller contract sizes, in order to learn effective risk management. Once comfortable, you can increase your contract size, choosing to put more capital at risk and and maximise your potential gains.
Utilize both long and short positions with CFDs to manage your exposure by “hedging”. This can help to limit the potential losses during times of high market volatility.
CFDs are derivatives that enable investors to gain exposure to an underlying asset. It is a contract between a buyer and seller that allows traders to speculate on the movement of an asset’s price. The profit (or loss) you generate will be the “difference” between the opening and closing price of the contract. The contract is open-ended meaning there is no time limit on when the final exchange between buyer and seller takes place.
CFD trading often involves margin and leverage, which means a trader deposits only a small percentage of the total contract value. This enables traders with smaller account sizes to benefit from larger trading opportunities. Margin requirements will range dependng on the product being traded. Typically they range between 1% and 80% of the underlying value of the instrument. For indices and currencies, these margin requirements can be as low as 1 percent.
CFDs mirror the price and behaviour of the underlying asset that they track. However, because the buyer (or seller) of a CFD does not actually own the asset itself, there is no obligation to receive or deliver the asset. This allows positions to be kept open indefinitely. With the addition of margin, there is no need to hold the full value of the contract in margin at the broker, therefore freeing up your capital to be put to use elsewhere.
Unlike other derivatives, CFDs do not have an expiry date like options or futures contracts. A CFD is automatically rolled over at the end of each trading day meaning you can hold the position for as long as required in your trading strategy. Dividend and interest adjustments will be made automatically by the broker to ensure that the contract meets its obligations to the client.
When trading CFDs on equity markets, such as the S&P 500 or the FTSE, you are also exposed to dividends. If you are “long”, you will receive dividends, and pay interest. If you are “short”, the reverse occurs.
To “go long” is to “Buy” a contract, while “going short” refers to “Selling” a contract. Going long usually suggests you are expecting the value of the contract to rise. If you go short, you are expecting the value to decline.
Leverage means you can trade a large contract, while only depositing a small percentage of the contract’s value.
Margin is the amount of capital the broker requires to maintain your trading positions. It is calculated as a percentage of the overall contract value.
Hedging is a risk management strategy that often involves taking a position that offsets your current position(s).
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Forex and CFDs are leveraged products which can result in losses greater than your initial deposit. Therefore you should only speculate with money that you can afford to lose.
Please ensure you fully understand the risks involved, seeking independent advice if necessary prior to entering into such transactions. Please click here to view our Risk Disclosure.
Hantec Global is a trading name of Hantec Global Ltd. who is authorised and regulated by the Mauritius Financial Services Commission (FSC) in the Republic of Mauritius. License Number: C114013940.