CMC Markets Plc

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Product FAQs

What is a CFD?

Contracts for Difference (CFDs) offer all the benefits of share trading without having to physically own them. Put simply, they are contracts that mirror the performance of a share or index. Traded on margin, the profit or loss is determined by the difference between the price bought at and the price sold at.

What are the advantages of CFDs?

  • Cost effectiveness
  • Flexibility - trade long or short
  • 24 hour market access
  • No stamp duty
  • Leverage

What is Financial Spread Betting?

A Financial Spread Bet allows an investor to bet on whether the price quoted for a given financial instrument is likely to go up in value (strengthen) or go down in value (weaken). The profit or loss is the difference between the price at which they buy and the price at which they sell.

What are the advantages of Spread Betting?

  • Flexibility - trade long or short
  • 24 hour market access
  • No Capital gains tax or stamp duty to pay
  • Tight dealing spreads
  • Trade in global markets from one account

What is the daily rolling cash bet?

The product tracks the underlying cash price rather than a futures price. Unlike futures bets there is no fixed expiry as the Daily rolling cash bet automatically rolls into the next trading day unless the position is closed. The product has revolutionised the spread betting market by providing increased transparency and tighter spreads.

Risk Warning

Spread Betting and trading in Derivatives carries a high degree of risk to your capital and it is possible to lose more than your initial investment. Only speculate with money you can afford to lose. These products may not be suitable for all investors, therefore ensure you fully understand the risks involved, and seek independent advice if necessary. CMC Markets UK Plc is authorised and regulated by the Financial Services Authority. Copyright 2006 CMC Markets UK Plc.