Online Trading

Equity CFDs

An Equity CFD is a derivative contract that enables the investor to speculate in the price of the underlying equities. These contracts allow clients to trade underlying equity, long or short without having to physically own them.


TRADE CFD'S ON THE FOLLOWING MARKETS


  • AMEX - NYSE

  • AMS - Euronext Amsterdam

  • BRU - Euronext Brussels

  • CSE - Nasdaq OMX Helsinki

  • FSE - Deutsche Borse

  • HKEX - Hong Kong

  • HSE - Nasdaq OMX Helsinki

  • ISE - Irish Stock Exchange

  • LISB - Euronext Lisbon

  • LSE - London Stock Exchange

  • MIL - Borsa Italiana

  • NASDAQ - NASDAQ

  • NYSE - New York Stock Exchange

  • NYSE_ARCA New York Stock Exchange ARCA

  • OSE - Oslo Stock Exchange

  • PAR - Euronext Paris

  • SIBE - BME SPanish Exchange

  • SSE - Nasdaq OMX Stockholm

  • SWX - SIX Swish Exchange

  • VIE - Vienna Stock Exchange

IS THERE PHYSICAL DELIVERY?


As there is no physical purchase of the underlying instrument, the underlying instrument will not be delivered to your account. Only the contract will be placed in your account.
These contracts have no settlement date, therefore settlement of a contract will be the difference between the buying price and the selling price.

AM I CHARGED INTEREST WHEN HOLDING A LONG POSITION OVERNIGHT?


Yes, as you are trading on margin you will pay interest on the value of the contract.
If you hold a long position for a lengthy period, this financing cost will be substantial and CFDs are therefore mostly suited to short-term investors.

DO I RECEIVE INTEREST WHEN HOLDING SHORT POSITIONS OVERNIGHT?


Yes, depending on the underlying product you may receive interest for as long as you are short.

WILL I HAVE TO PAY STAMP DUTY WHEN BUYING A U.K. EQUITY CFD?


No, as you are not holding the underlying shares there is no Stamp Duty.

ARE DIVIDENDS CREDITED TO THE ACCOUNT FOR LONG POSITIONS?


Yes, If you are long a CFD you will receive a payment that equals the net dividend (subject to tax) on the underlying share. This payment will be credited to the account when the stock goes "Ex-Dividend". However, if you are short a CFD you will be required to pay an amount that equals the gross dividend on the underlying share. This payment will be debitted from the account when the stock goes "Ex-Dividend"

IS TRADING CFD'S HIGH RISK?

CFDs are not for everyone:

The power of leverage/margin can work against you just as quickly as it can make you profits. If you get the markets wrong, always remember to apply adequate risk management strategies. Both losses and profits may accumulate rapidly when using the full leveraging of CFD's.

Warning:

While HMS Markets will always seek to provide tradable quotes, if the market becomes untradeable, HMS Markets may not always be able to quote you a price, or the spread between bid and ask prices may widen substantially.

Financing costs on long positions may be substantial, just as they would be if you undertake traditional margin trading. Clients should always keep an eye on the costs associated with maintaining a long position for a lengthy period of time.