CFDs are a revolutionary trading product that give you more trading power, flexibility and trading opportunities. CFDs are becoming the trading product of choice for traders around the globe as you can:
Leverage
CFDs are traded using leverage. This can be a more efficient use of your trading dollars as you only allocate a small proportion of the total value of your position to secure a trade, while maintaining full exposure to the market.
CMC Markets current margin rates are:
| Share CFDs: | From 1% |
| Index CFDs: | From 0.5% |
| Sector CFDs: | 1% |
| FX CFDs: | From 0.5% |
| Commodity CFDs: | 3% |
| Treasury CFDs: | 1% |
| Bullion CFDs: | 1% |
Profit from falling markets
CFDs give you the ability to profit when the markets fall by entering into a short CFD trade. You can also hedge your long Share positions in falling markets by shorting with CFDs.
CFDs give you more trading flexibility and more opportunities.
Limit your trading risk
When trading CFDs with CMC Markets you can place stop loss orders which can help protect you from large market moves against you.
Other order types accepted online include: Market, Limits (take profits), normal Stop-loss, If Done (contingent) and OCOs (One Cancels the Other). You are able to place and amend these orders free of charge.
Some stop loss orders may not be executed at the price you specify.
Trade global CFDs
By trading CFDs you are not restricted to trading Australian Share CFDs. You can also trade international Share and Index CFDs - for example CFDs over Microsoft, Vodafone, Barclays Bank, Deutsche Telekom the US30 index and UK100 Index all from one single trading account.
Dividends
As an owner of a long Share CFD you will have your account adjusted to reflect cash dividends paid on the underlying share, as you would if you owned the physical share. However with a CFD you are not entitled to any voting rights or franking credits.
Note that for short CFD position you account will be debited for any dividends plus the amount of any franking credits.
