Contracts for Difference FAQs


Share your thoughts or questions on CFDS with Andy and other readers. Ask a question now.
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So are there different types of CFD providers?
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What is direct market access and how does trading inside the spread works?
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What is the difference between a direct market access broker and a market maker provider?
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Given the advantages of DMA over a quote-driven platform why would anyone want to use a quote-driven broker?
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Is it a good idea to steer clear of market makers?
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How safe are client funds?
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The small print on CFD/spread betting accounts worries me...
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Why do brokers reserve the right to close out a short position or change the margin requirements?
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Maybe this is why most of the providers insist on only taking on 'intermediate' customers?
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Do you have any general advice in dealing with providers?
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Does my broker hedge all client CFD positions as opposed to spread betting?
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As I understand that some CFD providers hedge their client positions on the stock market by shadowing client trades...don't they get charged stamp duty?
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Comparing Listed CFDs to other derivatives and normal contracts for difference what outweighs the other, risk out of the way?
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What are your thoughts on options?
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European online brokers do not offer equity and index options to retail traders like their USA counterparts do. True? If so, why?
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Are CFDs in the UK the equivalent of what options are in the USA?
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What about using CFDs in conjunction with options to minimise the risk?
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I have seen mention of the Greeks in options...but what are they?
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A CFD seems to be very much like a single stock futures contract, what's the difference?
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What are Binary CFDs?
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Are CFDs better to trade than options? Should I trade CFDs instead of options?
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I've heard about a strategy where one trades CFDs using puts?
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What do you think about writing covered calls, while short selling the stock as a hedge to your position?
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What are Covered Warrants?
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What is the difference between Covered Warrants and Turbos?
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How do CFDs compare to Warrants?
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What is the difference between Covered Warrants and Options?
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What's the difference between stocks and futures?
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What are stock futures?
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I've read that trading futures is better than equities for a small-time starting trader because far less capital is at risk...
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What are stock index futures?
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How do CFDs compare to futures?
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Is a Trust able to invest in CFDs?
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Are CFDs allowed in Sipps?
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Are there any advantages of trading a Contract for Difference (CFD) in a Self- Invested Personal Pension (Sipp)?
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Are there any advantages of trading a Contract for Difference (CFD) in a Self- Invested Personal Pension (Sipp)?
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Can you give me ideas on how to research stocks?
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But how do you predict the market direction?
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What technical indicators do you use to help you predict the market direction?
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What is Value Investing?
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But why do you believe Value can work?
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I'm looking to trade companies that are undervalued but fundamentally sound? How do I track such companies?
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What is best: using technical analysis or fundamental analysis to formulate a trade plan?
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How long does it take the average person to learn how to trade well?
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Should I trade intraday or end-of-day or both?
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But do you do any kind of mental preparation?
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Why is there so such volatility in some markets?
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But how difficult is day trading? How long does it take to be successful?
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What do you think about swing trading?
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Any recommended firms for retail scalping of Dow or related?
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How do you improve your trading strategy?
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What is risk appetite and risk aversion?
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How do you (as an amateur) win against institutions armed with analysts and access to a ton of information and other services?
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Small Cap vs. Blue Chip Stocks. How do they compare?
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Do you have any CFD trading tips to be successful and succeed at CFD trading?
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What qualities do successful traders have?
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Why do traders lose?
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Why do so many traders wipe out their account?
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Why do people think they can trade without doing their homework?
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Do I have to accept some big losses in the beginning?
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How come elite traders succeed and continue bouncing back even after repeated failures?
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I am very new to the CFD trading scene and am finding it difficult to pin point a trading strategy that I may be able to adopt as a full time venture...
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I would appreciate some advice or tips on when to exit a losing or winning trade?
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You start with £1000. You make £1000. You then lose £1000. Considering only the result, have you lost money or are you back to where you started?
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I am trading the indices but my stop loss is always getting hit!!
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Is it possible to become a millionaire trading CFDs?
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What is the tax situation in Australia?
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Is it the trading date or the settlement date that is used for the financial year come tax time?
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Any tax advice for someone located in the United Kingdom looking to deal in USA shares?
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If shares are traded within SS ISA regardless of how many times you buy and sell or whether you realise a capital gain or not, you do not need to report back to the HMRC right?
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Is there a problem selling shares that are showing a loss and buying them back same day to reduce capital gain this financial year?
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What happens tax wise if a person bought 1000 shares some years ago and then purchased and sold a further 500 within 4 weeks for a profit?
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Is CGT and stamp duty taxed differently if shares sold within a short period of 10 days?
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Can I transfer my UK shares to an overseas broker and so then claim they were overseas shares in the process?
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Can I file a claim to the tax authorities against CFD losses incurred in my trading?
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When paying capital gains tax on shares what expenses can you claim against it?
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If I lost money in the stock market last year and had no other job do I need to file a tax return?
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I have been trading in a CFD account and incurred losses in 2007 and 2008 but am in profits this year. Can I deduct my losses from 2007...
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If you pay CGT on profit from shares in 2007 and then make a loss in 2009, can you offset the loss and get some of the CGT paid back?
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I have recently been dealing frequently in CFDs. Applying share-matching rules would be very complicated...
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I'm in the UK and bought most of my shares in 1997, therefore is my CGT allowance shared out between 1997 - 2010...
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Regarding offsetting share losses.. If you have sell shares from company A at a profit and a few months later buy and sell shares from company B at a loss, can you offset the loss from company B against profits made from company A?
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I have just been wiped out for the second time. Am I some kind of trading freak?
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Why do I keep making such stupid mistakes?! What can I do to avoid them?
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Would you recommend using an advisory brokers service?
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Are there any funds which use CFDs in their investment portfolio?
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Why are CFDs not permitted in the USA?
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Will CFDs ever be allowed in the USA?
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I know that USA residents are not permitted to do CFD trading but currently I'm in Mexico and I have a temporary residence card (green card)...


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