Understanding the risks
IWeb Spread Trading is a product which you can use to speculate on the price movement of an investment, whether it’s rising or falling. It is important to remember that Spread Trading is designed for experienced traders and carries a high level of risk to your capital. You should only trade with money you can afford to lose. It is possible to quickly lose substantially more money that your initial deposit.
Key Risks of Spread Trading
• Spread Trading is a leveraged product and it is possible to lose substantially more money than your initial deposit.
• To maintain open positions, you may be required to make further deposits at short notice. Find out more about margins and margin close out.
• Spread Trading is a high risk product designed for experienced investors where it fits with their personal circumstances.
• You should not open a Spread Trading account unless you fully understand the risks involved.
• Tax laws can change.
• During a volatile market, market gapping can occur.
• Unlike standard share dealing you have no right to the underlying financial instrument (including voting rights).
• Foreign Currency Conversions are required on trades which settle in a currency other than your base currency.
• Over The Counter stocks carry a high level of unpredictability and illiquidity, meaning their risks for trading are much greater.
• You will be required to complete an appropriateness test to assess whether your personal circumstances suit Spread Trading.
Spread Trading is a leveraged product which means you only need to deposit a small percentage of the overall trade value. If the price moves against you then it is possible that you could lose substantially more than your initial deposit. Find out more about margins.
If you are ready to apply for a Halifax Spread Trading Account, we have an interactive demo for you to try. Take a look at our Simulator Account. If you are unsure whether a Spread Trading account is right for you, we have a range of accounts to suit all investors.
Please make sure that you've read, and taken the necessary steps to understand, our General Terms and Key Service Features before opening an account.
What is Spread Trading? Understanding the risks How to Spread TradeImportant Information General Terms Key Service Features
Margins and Financing Going long or short Apply for an account
IWeb Spread Trading is provided by City Index Ltd and therefore your contractual relationship is with City Index.
City Index Limited is authorised and regulated by the Financial Services Authority (FSA Register Number 113942).
Spread Trading
Spread Trading and CFDs carry above average risk, please remember that it is possible to quickly lose substantially more money than your initial deposit and you may be required to make further deposits at short notice. Spread Trading and CFDs are not for everyone so please ensure you understand the risks.