About Contracts for Difference (CFDs) * A contract between 2 parties to exchange, at the close of the contract, the difference between the opening price and the closing price of the contract, with reference to the underlying share, multiplied by the number of shares specified within the contract. * CFDs are an equity derivative product allowing investors to profit from both the share prices rising and falling by going long or short, whilst benefiting from leverage and current exemption from UK stamp duty. CFDs Risk Warnings * Prices may move rapidly against your interests and resulting losses may require further payments to be made. * If you are unsure as to whether or not a particular investment is appropriate for you, you should seek independent advice. * If you live outside the UK, you may find that local rules and legislation restrict the availability of certain investments and you should inform yourself of any such restrictions. * Do not speculate with money that you cannot afford to lose. When placing a trade, consider your potential losses, which can be considerably higher than your unit stake, and may exceed your credit limit. About Spread Betting * Spread Betting originally arose as an quick and easy way to make investments without incurring expensive share dealing costs. Thanks to the generosity of the Chancellor of the Exchequer, Spread Betting has always let you make investment profits free of capital gains tax, so it is hardly surprising that it has become the fastest growing form of alternative investment in the UK. * With Spread Betting, you are not limited to profiting only when the your chosen share (or index, currency, bond, interest rate, gold, or other commodity) is going up. By "selling" or "going short" before "buying" back, you can profit even when the markets are going down. Try asking your stockbroker for that service! * Your broker also requires you to pay for the shares you buy. With Spread Betting, you only pay a small deposit, known as "margin", usually about 5-10% of the value. * Spread Betting brochures explain more about how it works, but be warned that these transactions have much more risk than normal bets or share transactions, as both profits and losses are amplified by the leverage from margined trading. Current tax laws could change. * To help limit your risk, we advise you to take advantage of stop loss services, which automatically close your position if you are losing money. Spread Betting Risk Warnings * Spread bets carry a high level of risk to your capital. Only speculate with money you can afford to lose. Spread betting can be very volatile. Prices may move rapidly against your interests and resulting losses may require further payments to be made. Spread betting may not be suitable for all customers; therefore ensure you fully understand the risks involved, and seek independent advice if necessary. * The information on this site is not directed at residents of the United States or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. It is the responsibility of visitors to this site to ascertain the terms of and comply with any local law or regulation to which they are subject. Whilst Dianomi has made every effort to ensure the accuracy of the information on this site, the information given on the site is subject to change, often without notice. It is for guidance only and no liability is accepted by Dianomi for its accuracy or otherwise. * Do not speculate with money that you cannot afford to lose. When placing a trade, consider your potential losses, which can be considerably higher than your unit stake, and may exceed your credit limit.
