About CFD's

Leverage

'Leverage is one of the most important aspects of a CFD'

Leverage or margin means you do not have to payout for the full value of the shares. Instead, you put up a deposit. For example, the 'initial margin' for a share would usually be 5% or below. When trading currencies and indices using CFD's, the margin rates are as low as 1%.

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This gives you the ability to magnify your exposure by using the same amount of money to create a bigger and instant position in the market. You may also use leverage to create the same size position but using less capital. Please remember leverage can magnify profits and losses.

'Take direction if the markets go up or down'

This gives you the opportunity to speculate on prices falling. For example, from 2000-2003, the FTSE 100 was in a bear market. Because of the ability to go short, many investors at this time switched from shares to CFD's.

Short positions can also be used as an effective method of hedging other investments. These include shares, foreign exchange and commodities.

Tax Efficient

CFD's are not liable to UK Stamp Duty under current tax legislation.

Immediate Execution at the Market Price

There is no extra spread between the bid and offer price when trading CFD's at JN Financial. You can also hold the position for as long as you want.

Dividends

Benefit from dividends as if you were holding the physical shares. However, if you are short of the stock, the reverse applies.

Trade the Global Markets

JN Financial covers all the major global markets, including Equities (UK, US, Europe and Asia), Commodities (for example Oil and Gold), Indices (for example FTSE100, S & P 500 and Nikkei 225) and Foreign Exchange (for example Sterling/Dollar and Euro/Dollar).