What is CFD trading?
Contracts for difference (CFDs) enable you to trade the price movements of global financial markets without owning the underlying instruments directly.
Through CFDs, you can take a position instantly from our trading platforms on major indices such as Wall Street as well as metals like gold and silver, and commodities such as crude oil.
CFD prices are quoted as a buy (the price you can go long at) or sell (the price you can go short at). The price of your CFD replicates the price of the underlying instrument.
Why trade CFDs?
CFD trading enables you to take a position for a fraction of the total trade value, meaning you can trade a large position with a relatively small deposit, such as 5%.
With CFDs, you can speculate on both rising and falling markets so you can still take advantage, even if market prices are falling.
Plus, with City Index, you’ll benefit from tight spreads, low margins, flexible contract sizes and commission-free trading.
How to trade CFDs
If you believe a market price will rise in value, you can go long (buy) and your profits will rise in line with any increase in that price.
Equally, if you think a market will fall, you can go short (sell) and your profits will rise in line with any decrease in that price.
However, if your predictions are wrong, your losses will increase in line with every point the market moves against you.
Our CFD markets and spreads
At City Index, we seek to keep your trading costs as low as possible by giving you access to tight spreads across multiple global markets. We also give you the opportunity to trade on one of two platforms, City Index’s award-winning Advantage Trader platform or MetaTrader4.
These include major indices such as Wall Street, the SP 500 and the UK 100. We also give you access to trade commodities, such as US crude oil, and metals, such as gold and silver.
We also run a number of our markets 24 hours a day - so you can trade CFDs with us even if the underlying markets are closed.