Risk Warning Before trading Contracts for Difference, Spread Bets or Foreign Exchange (ForEx or FX), you should carefully consider your investment objectives, level of experience and risk appetite and ensure that you fully understand the risks involved. These products may not be suitable for all types of investor and only for those over the age of 18. You trade on margin which means a small deposit (in percentage terms) gives a big position and losses or profits are therefore magnified.
You can make or lose many times more than your deposit (margin) and so by their nature these products are high risk. Trading in Contracts for Difference/Spread bets/FX is generally considered suitable only for the more experienced investor since trading is leveraged, meaning that whilst a small price movement in your favour can result in a high return on the deposit requirement, a small price movement against you may result in substantial losses.
In some circumstances you may be liable for a greater sum than your initial capital invested. Past performance is not necessarily a guide to future performance. The value of shares or income from your positions may go down as well as up due to the volatility of world markets, economic conditions/data and/or changes in the rate of exchange in the currency in which the investments are denominated.
You may not necessarily get back the amount you invested. Trading can result in incurring liabilities in excess of your initial investment as if you fail to meet any margin requirement, your position may be liquidated and you will be responsible for any resulting losses. You should continually be satisfied that any investment remains suitable for you, in light of your circumstances and financial position and only speculate with money you can afford to lose.
This notice does not disclose all of the risks and other significant aspects of derivative products such as futures, options and contracts for differences and you should make sure you carefully consider if Equitrade Capital Ltd’s products are suitable for you. Equitrade Capital Ltd is a company registered in England and Wales under number 04977383. Registered Office: 257 Hagley Road, Edgbaston, Birmingham. B16 9NA.
Equitrade Capital Ltd (FSA No. 482888) is an Appointed Representative of Equitrade Markets Ltd (FSA No. 441877) a firm authorised and regulated by the Financial Services Authority to provide advice on shares, CFDs, spreadbetting, futures, options and rolling spot foreign exchange
By clicking the 'accept' button below you are agreeing that you understand the above risk warning.
Spread betting allows you to trade on the price movements of financial markets including shares, indices, commodities and currencies. All spread bets have a buy price and a sell price, the difference between them is called the spread. To place a spread bet you just have to decide whether the price of a product is likely to go up or down.
You bet in pounds per point and your profit or loss is the difference between the price you buy at and the price you sell at, multiplied by your stake.
Unlike full value trading where you actually take possession of the underlying instrument, instead you are simply taking a position that allows you to speculate on movements in its price.
- Bet on the price movements of international companies, indices, commodities and currencies, all from one account.
- As you are trading on margin, you can maximise your trading capital by use of smaller amounts of capital. This also allows you to trade multiple positions because it leaves you with more available capital.
- Profits made from spread betting are exempt from capital gains tax (CGT) in the UK*
- You don't actually physically buy the underlying shares, and so you don't have to pay stamp duty (saving 0.5% compared to a traditional share purchase).
- Bull or bear: You can profit from falling or rising markets by trading long or short.
- A single account can give you access to far greater range of financial markets.
- You can limit & manage your risk using a Stop Losses and Limit orders.
- There's no currency risk as bets are in pound sterling, even for international markets. It doesn’t matter how the pound is faring against the dollar, the euro or the yen.
- The geared nature of margin trading markets means that losses can be magnified if the market moves against you.
- To make money from spread betting you have to get the market direction right. Unless you place a stop loss you could incur very large losses if your position moves against you
- If your bet loses money you may need to top up your margin to keep your bet open
If you are interested in finding out more about spread betting please Contact Us to discuss your requirements.
*U.K. tax laws may be subject to change, may depend on personal circumstances and can differ if you pay tax in any jurisdiction outside of the U.K. It is therefore advisable to seek independent tax advice.
trade demonstrations
Latest News
- UK economy slows to 0.2% growth
The growth of the UK economy slowed... - Obama and rivals trade debt blows
President Obama and Republican John...