User Manuals & Guides

A knowledgeable trader can achieve much more and we are happy to help you learn. 

How to open a MetaTrader / MT4 ECN Demo Account?

Short tutorial on how to open a MetaTrader / MT4 ECN Demo account with Price Markets.

Can I trade on an Apple Mac computer?

Yes.

Price Markets WebTrader is a cross-platform trading system that you can access from any modern web browser or smartphone.

Back-office can be accessed through any web-browser.

We generally recommend using Google’s Chrome browser or the new Microsoft Edge browser.

MT4 ECN – Getting Started

  • Step 1. Run the MetaTrader.exe file the same way you launch any Windows program.
  • Step 2. Press the Next button to get started with the installation.
  • Step 3. Click the Next button after reading the notice:

In the next window check the “Yes, …” box if you agree with the terms of the license agreement. Then press the Next button:

MT4 ECN setup: Read the terms of license agreement

  • Step 4. Select an installation folder and program group and press the Next button to start the installation:

MT4 ECN setup: Select a folder and program group.

Installation is in process. Once the MT4 ECN platform has been installed you can launch it by clicking the “Finish” button.

MT4 ECN setup: installation in process

To launch the MT4 ECN platform you can click on “Start/Programs/Price Markets MT4 Terminal/Price MT4” or on its desktop icon.

First-time MT4 ECN users will be prompted to fill in the application form to open a demo account:

Open a training account

Those who already trade via MT4 ECN, can open a demo account anytime by selecting the “File->Open an Account” item from the MT4 ECN menu. Then fill in the application form to open a demo account as shown above.

After choosing your preferred account type, click the “I agree to subscribe to your newsletters” box to produce a check mark and press the Next button.

Server for the training account

Then press the Next button. In the following window you will see your login and password to trade on the demo account:

Demo account details

Once you press the Finish button you will have access to your demo account. If your demo account is inactive for 30 days it may be deleted by our server.

MT4 ECN – Stop Loss and Take Profit

Stop Loss: an order to close a previously opened position at a price less profitable for the customer than the price at the time of placing the order.

Take Profit: an order to close a previously opened position at a price more profitable for the customer than the price at the time of placing the order.

If you place these types of orders you do not have to sit in front of your computer to wait for the outcome. “Take Profit” and “Stop Loss” orders will be executed automatically as soon as the price reaches order level (see below). You can place Stop Loss and Take Profit at the time of making a deal filling in the “Stop Loss” and “Take Profit” fields in the “Order” window:

MetaTrader (MT4) Stop Loss and Take Profit Order Window

Afterwards in order to modify Stop Loss and Take Profit levels use the context menu:

MetaTrader (MT4) Modify Stop Loss and Take Profit

Right-click on the open position or on the pending order in the “Trade” tab of the “Terminal” window then select “Modify or delete order”. The “Modify order” window enables:

MetaTrader (MT4) Modify Order Window

Fill in the “Stop Loss” and “Take Profit” fields. By pressing the red button (in our example “1.2121”) you can copy this level into the “Stop Loss” field. By pressing the blue button (in our example ‘1.2096′) you can copy this level in the “Take profit” field. The value in the “Level” field defines the difference between the order level and the current price. Once you fill in the “Stop Loss” and/or “Take profit” fields press the “Modify #position number” button.

The limits for the minimum range between the order and the current price are defined in the Symbol Properties Section under Market Watch.

In order to delete “Stop Loss” or “Take Profit” orders, specify its level as equal to zero. ‘Stop Loss’ and “Take Profit” orders are executed in the following cases:

The “Take Profit” order on an open Buy position is executed if the Bid price in the quotes flow becomes equal or higher than the order level.

The “Stop Loss” order on an open Buy position is executed if the Bid price in the quotes flow becomes equal or lower than the order level.

The “Take Profit” order on an open Sell position is executed if the Ask price in the quotes flow becomes equal or lower than the order level.

The “Stop Loss” order on an open Sell position is executed if the Ask price in the quotes flow becomes equal or higher than the order level.

The order will be executed if at least one quote in the quotes flow reaches the order level. Please note, that in MetaTrader4, charts are created using Bid prices. So:

Minimum Ask price is equal to the minimum bar price (Low) plus spread.

Maximum Ask price is equal to the maximum bar price (High) plus spread.

Minimum Bid price is equal to the minimum bar price (Low).

Maximum Bid price is equal to the maximum bar price (High).

Important: In the event of the market gapping from one price to another we will execute your order at the first available price after the market gap.

MT4 ECN – Open and Close Positions

In order to enable the ‘Order’ window:

1. Right-click on the ‘Market Watch’ window or on the ‘Trade’ tab of the ‘Terminal’ window and select New order from the context menu; or

2. Use the Tools -> New Order menu sequence; or

3. Right click on the chart window and select Trading -> New Order from the context menu; or

4. Double click on the currency pair in the ‘Market Watch’ window.

The ‘Order’ window:

MetaTrader (MT4) Order Windows Instant Execution

Order window (Instant Execution)

In MetaTrader4 there are two ways of making deals: ‘Instant Execution’ and ‘Request Execution’.

Instant Execution means that you do not have to request quotes as you see real-time dealable prices in the ‘Order’ window and in the ‘Market Watch’ window. Once you have decided to buy or sell at the current price press the “Buy” or “Sell” buttons to open a long or short position. For the instruments which are traded in the ‘Instant Execution’ mode all quotes which are in the “Market Watch” window are executable, not indicative.

For the instruments traded in the “Request Execution” mode all quotes in the ‘Market Watch’ window are indicative and the “Buy” and “Sell” buttons are inactive. In order to make a deal you should request the quote from MetaTrader by pressing the “Request” button:

MetaTrader (MT4) Order Window Request Execution

Order window (Request Execution)

Once you see the quote it remains dealable for several seconds:

MetaTrader (MT4) Order Window

 The quote is valid for making a deal within several seconds

Once the “Buy” or “Sell” button is pressed and MetaTrader4 confirms the deal, you can consider your new long or short position open:

MetaTrader (MT4) Deal Execution Confirmation
Deal execution confirmation

The position is now listed in the ‘Trade’ tab of the ‘Terminal’ window.
‘Instant Execution’ technology has many advantages over ‘Request Execution’. Instant Execution only takes a few seconds to deal compared to the ‘Request Execution’ which can take up to 30-40 seconds (on the Demo Accounts all operations are made within seconds, as demo accounts are quoted automatically, whilst live accounts are quoted manually). In the case of ‘Request Execution’, all quotes in the ‘Market Watch’ window are indicative, so they may differ from those offered by the company for making a deal.

Before you make a deal you can change its details in the ‘Order’ window:

  • Symbol – a currency pair or CFD you choose to make a deal.
  • Volume – number of lots.
  • Stop Loss – the level of Stop Loss order.
  • Take Profit – the level of Take Profit order.
  • Comment – any notes.

In order to close a position, highlight it in the ‘Trade’ tab of the ‘Terminal’ window and right-click to obtain the context menu:

MetaTrader (MT4) Close Position

…then select “Close Order”. Left-double-clicking on the open position in the “Trade” tab of the “Terminal” window will generate the same result. Next, the ‘Order #__ …’ window appears:

MetaTrader (MT4) Close Position Instant Execution

Close the position (Instant Execution)

For instruments which are traded in the ‘Request Execution’ mode, you have to request a quote before closing a position:

MetaTrader (MT4) Request for Quote

Close the position (Request Execution)

Once you press the Request button MetaTrader4 gives you the quote and the “Close position number” button becomes available:

MetaTrader (MT4) Request Position Close

Close the position (Request Execution) – step 2

If a currency pair or a CFD is traded in the “Instant Execution” mode there is no need to request a quote. This is why once the ‘Order #__ …’ window appears the “Close #position number…” button becomes active.

If the market is stable then execution is usually made at the quote shown by MetaTrader4. Sometimes, however, the market can be very volatile and the quote offered several seconds ago may become invalid (even before those several seconds, which are given to you for the decision-making process, run out). In this case the quote is revoked and the “Requote” window with a new quote appears.

MT4 ECN – Trailing Stops

A Trailing Stop is an algorithm to manage Stop Loss orders.

Once a trailing stop has been placed (for example, if a trailing stop’s value is 15 pips) the following occurs:

    • No Stop Loss order will be placed until the open position is in a profit of at least 15 pips. MetaTrader4 then sends an instruction to place the Stop Loss order 15 pips higher or lower than the current price.
  • Subsequently, each time the difference between the current price and the order level exceeds 15 pips, MetaTrader4 sends the instruction to modify the Stop Loss order to a level 15 pips higher or lower than the current price. As a result, the Stop Loss order becomes closer to the current price.

MetaTrader (MT4) Trailing Stops

Note: It is very important to note that no Stop Loss order will be placed until the market moves in your favour, as mentioned above. Therefore to limit losses, a separate Stop Loss would need to be placed manually. In order to place a trailing stop, highlight the open position in the ‘Trade’ tab of the Terminal window and right-click to open the context menu.

MT4 ECN – Pending Orders

A Pending order is an instruction to open a position when the current price reaches the order level. There are four types of pending orders:

  • Buy Stop – an order to open a Buy position at a price higher than the price at the moment of placing the order.
  • Sell Stop – an order to open a Sell position at a price lower than the price at the moment of placing the order.
  • Buy Limit – an order to open a Buy position at a lower price than the price at the moment of placing the order.
  • Sell Limit – an order to open a Sell position at a price higher than the price at the moment of placing the order.

MetaTrader (MT4) Stop and Limit Orders

In order to place a Pending Order, open the “Order” window by any way described below:

1. right click on the “Market Watch”window or on the “Trade” tab of the “Terminal” window and select New order from the context menu; or

2. press the F9 button; or

3. use the Tools -> New order menu sequence; or

4. right-click on the chart window and select Trading -> New order from the context menu; or

5. double-click on the currency pair in the “Market Watch” window.

Then choose the Pending order item from the drop down list:

MetaTrader (MT4) Pending Orders

The following options may also be changed in this window:

  • Symbol – currency pair or CFD
  • Volume – transaction size in lots
  • Stop Loss – Stop Loss order level which will be activated once the pending order has been executed
  • Take Profit– Take Profit order level that will be activated once the pending order has been executed
  • Comment– your comments for the pending order
  • Type – the type of pending order: Buy Stop, Buy Limit, Sell Stop, Sell Limit
  • At price– pending order level
  • Expiry – if the box has not been checked the order is valid up to the time when you cancel it or when it is executed. If the box is checked the order is valid up to the moment specified in the box

Once the Place order button is pressed, the instruction is sent directly to the Price Markets Trading Desk. Once MetaTrader4 confirms the order, it appears in the ‘Trade’ tab of the ‘Terminal’ window

In order to modify or delete a pending order highlight it in the ‘Terminal’ window, then right click to produce the context menu:

MetaTrader (MT4) Modify Pending Orders

Select Modify or Delete order. Press the Modify button or the Delete button depending on your choice in the dialog window:

MetaTrader (MT4) Pending Orders Execution

Execution of pending orders:

A Buy Limit order is executed if the Ask price in the quotes flow becomes equal or lower than the order level.

A Sell Limit order is executed if the Bid price in the quotes flow becomes equal or higher than the order level.

A Buy Stop order is executed if the Ask price in the quotes flow becomes equal or higher than the order level.

A Sell Stop order is executed if the Bid price in the quotes flow becomes equal or lower than the order level.

MT4 ECN – Real Time Quotes

The “Market Watch” window can be activated by pressing the Ctrl+M key combination, or by using the View -> Market Watch menu sequence, or by clicking the MetaTrader (MT4) Market Watch Button button from the “Standard” toolbar:

Standard toolbar

Right click the mouse button on the “Market Watch”  window to produce the context menu:

Market Watch window

  • New Order – enables the window to open/close a position or to place a new pending order;
  • Chart Window – enables the chart of a currency pair or CFD;
  • Tick Chart – shows the tick chart for the selected instrument;
  • Hide – deletes the specified symbol from the list in the “Market Watch” window;
  • Hide All – deletes all symbols from the list in the “Market Watch” window which are not used (if you have open positions or charts, its symbols will not be deleted);
  • Show All – displays all available symbols in the “Market Watch” window;
  • Symbols – enables the window where you can hide/show the selected instruments;
  • Sets – saves/adjusts/deletes the custom settings for the “Market Watch” window;
  • High/Low – shows/hides columns with the highest and lowest prices for each instrument;
  • Time – displays a column with the arrival time of the latest quote for each instrument;
  • Grid – hides/unhides gridlines in the “Market Watch” window;
  • Popup Prices – opens the popup window which contains real time quotes for your selected instruments.

MT4 ECN – Charts

In MetaTrader 4 you can see as many real time charts as you wish, all on one screen, for any currency pair, CFD, and for any time period. The following types of charts are available in MetaTrader4:

Line Chart

The chart’s x-axis is for the different time periods (minutes, hours, days, months etc.), and the y-axis is for the price. The point on the chart shows the close price for the period, i.e. the bid of the last quote for this period. All the sequential points are joined by lines:

It is recommended that this chart type is used only for the short time periods (up to 5 minutes). In order to change the chart to a line chart, press the    button on the Charts toolbar:

Or press the Alt+3 key combination or use the Charts -> Line Chart menu sequence.

Bar Chart

The chart is created with the use of bars. Each bar has a high (top), a low (bottom), an opening price (left horizontal little line) and a closing price (right horizontal little line) for the specified period of time (for example, an hour):

It is recommended that you use this chart type for periods of 5 minutes or more. In order to change the chart to a bar chart press the    button on the “Charts” toolbar.

Charts toolbar

Or press the Alt+1 key combination, or use the Charts -> Bar Chart menu sequence.

Candlesticks

These charts are created in the same way as bar charts:

Candlesticks charts were very popular in the 80-90s because of their clear graphics. Candlesticks were originally created only for day charts which is why these days they are mostly used for a daily period. This method of technical analysis is based on the correlation between both closing and opening prices within the same trading day, and the closing price of the previous session and the opening price of the next session.

Candlesticks have different configurations compared to bar charts. The rectangular part of the candlestick line is called the real body. The thin vertical lines above and below the body are called shadows. They show lows and highs within a specified period of time. Depending on the closing and opening prices the real body can be white (empty) or black. When the body is white, the closing price is higher than the opening level. When the body is black, the closing price is lower than the opening level.

In order to change the chart to a bar chart press the    button on the “Charts” toolbar. Or press the Alt+1 key combination, or use the Charts -> Bar Chart menu sequence.

In MetaTrader4 both the bar and candle high is the highest Bid price for the defined period, the low is the lowest Bid price, the closing price is the last quoted Bid, the opening price is the first quoted Bid.

In order to create a new chart for any instrument right click on the “Market Watch” window, then select the Chart window item from the menu:

By left clicking the mouse you can drag and drop any selected currency pair or CFD into any open chart window.

Chart period – the period displayed in one bar or candle. For example, if you create a 15 minute bar chart, then each bar will have the price data for the relevant 15 minutes. In MetaTrader4 the following time periods can be used: 1, 5, 15, 30 minutes (M1, M5, M15, M30 respectively), 1 hour (H1), 4 hours (H4), 1 day (D1), 1 week (W1) and 1 month (MN). In order to change a time period, use the “Periodicity” toolbar:

“Periodicity” toolbar

Right click anywhere on the chart to produce the context menu to get access to the chart settings:

Choose Periodicity and select a time period from the drop down menu or press the button on the “Charts” toolbar;

Select Refresh item if an error occurs or if there are so called “gaps” on the chart. All missing data will be uploaded from the server and will appear on the chart;

Select Grid if you wish to hide/unhide gridlines on the chart;

Select Volumes in order to show/hide tick volume (the number of quotes of any period time);

Zoom in / Zoom out will help you to modify chart measures. You can also use the      buttons on the “Charts” toolbar or press the “+” and “-” buttons;

Save as picture… will save the chart as the *.gif, or *.bmp. file;

Properties… (or the F8 button) is the window where you can change chart settings or the charts color scheme by selecting the “Color” tab of any element on the chart:

Other settings can be changed in the Common tab:

Please note the following options:

Offline chart – the chart is not being updated by new quotes. Once you open the chart offline (File -> Open offline) this option becomes automatic;

Chart shift – allows to shift the chart from the right edge of the window. You can also press the    button on the “Charts” toolbar or use the Charts -> Chart shift menu sequence;

Chart autoscroll – disables/enables chart autoscroll to the left once a new quote is received. You can also press the    button on the “Charts” toolbar or use the Charts -> Autoscroll menu sequence.

How to execute a Market Order on MetaTrader 4 / MT4 ECN?

This video shows how to execute a standard market order when trading on MetaTrader / MT4 ECN.

How to set a Stop Loss and Profit Target on MetaTrader / MT4 ECN?

This video tutorial will show you how to manage your risk on MT4 ECN. Set Stop Loss and Profit Target (Take Profit) on MT4 ECN in order to protect yourself from adverse risk or in order to lock-in profits.

How to install an Expert Advisor (EA) on MetaTrader / MT4 ECN?

Learn how to quickly install an Expert Advisor (EA) on MetaTrader / MT4 ECN to carry out your Automated Trading.

How to run an Expert Advisor (EA) on MetaTrader / MT4 ECN?

Short tutorial on how to activate or run your Expert Advisor (EA). Once activated, your Expert Advisor will automatically trade the markets based on the parameters set by you.

How can I change the language on MetaTrader 4 (MT4)?

1. Log in & go to the menu at the top.
2. Select View > Languages.
3. Select the language for your MetaTrader 4 (MT4).
4. Close the program and re-open it. The platform will now be displayed in the language you selected.

Can I partially close a position on MT4 ECN?

Yes, you can partially close a position. To do so double click on the trade which will be shown on the ‘Trades’ tab on the ‘Terminal window’. When the order box opens up just change the volume to the correct size that you want to close then click on the yellow ‘close’ button.

How can I view my previous trades on MT4 ECN?

You can see details of the trades that you have made and that have been settled if you click on the ‘Account History’ tab found on your ‘Terminal’ window in your platform.

How do I calculate the profit or loss on my MT4 ECN?

Contract size x market movement.

Examples:

Long one contract or lot ($100,000) EUR/USD @ 1.42356

Market rises to 1.42556

Therefore 100,000 x 0.00200 = +$200

Short one contract (1,000 barrels) WTI Crude Oil @ $75.06

Market rises to $75.28

Therefore 1,000 x $0.22 = -$220

Short one contract or lot (EUR 100,000) EUR/JPY @ 127.455

Market falls to 127.155

Therefore 100,000 x 0.300 = +JPY 30,000 (USD/JYP = 90.081) = +$333

What is the minimum trade-size on the MT4 ECN?

Minimum trade-size is as low as 0.01 lot (1,000 units of base currency). Learn more what different minimum and maximum trade sizes are for each instrument and market offered by Price Markets in the Forex section.

What is CFD Trading?

The definition of a CFD (or Contract For Difference) is an agreement to exchange the difference in value of a particular market between the time at which the contract is opened and the time at which it is closed.

CFDs are one of many forms of investing and trading FX, Commodity and Stock Index markets, regulated by the UK’s Financial Conduct Authority (FCA).

How Does It Work?

With CFDs you do not actually own the underlying asset that you are trading because it is a derived instrument. The prices that we provide you are derived from the underlying asset and these prices move in conjunction with that underlying asset.

This diagram shows how your profit is calculated depending on whether you buy or sell the market, assuming you buy 1 CFD:

 

Once you have chosen the market on which you wish to trade, you can then trade as many CFDs as you wish, which will represent your profit or loss per point movement in that market (each market has its own individual maximum allowable trade size).

You can choose to bet that the market will rise (Buy or Go Long), or alternatively, you can bet that it will fall (Sell or Go Short). If you are right, you will make a profit of your number of CFDs multiplied by each point that the market moves in your favour. If you are wrong you will make a loss of your number of CFDs multiplied by each point that the market moves against you.

For this reason you must be aware that your losses can increase dramatically if the markets move substantially in the opposite direction to your trade (i.e. if you BUY ABC 100 and instead of going up it goes down).

In all markets, there is a “spread” which refers to the difference in Sell (Bid) and Buy (Offer or Ask) price quoted by a broker. A CFD price always has two parts. The first is the BID or price you can sell at. The second is the ASK or the price you can buy at. This price is calculated by adding additional points around the live (or the estimated future) market price of a financial product. For example, if the Daily FTSE is betting at 5000.5 our quote might be 5000.0-5001.0.

CFD Trading Compared To Stocks.

Traditional Stock Broker

ROCE working: 4750 ÷ 14000 x 100%
Buy 10,000 shares @ 140p
Cash outlay (£14,000)
Sell 10,000 shares @ 200p
Gross profit £6,000
Stamp duty (£70)
Commission (buy/sell) (£100)
Tax @ 18% (£1,080)
Overnight financing £0
Net Profit £4,750
Return on Capital Employed 34%

Price Markets

ROCE working: 4873.6 ÷ 1401 x 100%
Buy 10,000 CFDs @ 140.1p
Cash outlay* (£1,401)
Sell 10,000 CFDs @ 199.9p
Gross profit £5,980
Stamp duty £0
Commission (buy/sell) £0
Tax @ 18% (£1,076.4)
Overnight financing (£30)
Net Profit £4,873.6
Return on Capital Employed 347%


** CFD’s are exempt from UK Stamp Duty. Tax treatment depends on the individual circumstances of each client and may change in the future.

Remember that the risk is still the same for either scenario.

As with all CFDs you do not own or owe the underlying asset. So, if you open a buy CFD on a share you will not have any voting rights.

CFD Trading Examples

Learn how to trade CFDs with Price Markets. This video tutorial will show you how to execute a CFD trade.

What is Spread Betting?

Financial spread betting is one of many forms of investing and betting FX markets, regulated by the UK’s Financial Conduct Authority (FCA).

You can use any of our trading platforms with a spread betting account.

With spread betting, you can choose to bet that the market will rise, or alternatively, you can bet that it will fall. If you are correct and the market moves in your favour, you will make a profit of your stake multiplied by each point that the market moves in your favour. If you are wrong you will make a loss of your stake multiplied by each point that the market moves against you. Via your account you have the ability to back your judgment as to whether any of our markets will rise or fall in value, similar to buying a share via a traditional stock broker in the hope that it will rise in value, so that you can sell it for a profit at a later date.

With financial spread betting you do not actually own the underlying asset that you are betting because it is a derived instrument. The prices that we provide you are derived from the underlying asset and these prices move in conjunction with that underlying asset.

How Does it Work?

When you spread bet, you do not buy or sell any currency but instead you make a bet as to which way you think the market or price will move. You can bet per penny or point movement – the amount you wish to bet is known as the “stake”, and can be as little as £1/€1/$1 per point or penny movement.

This diagram shows how your profit is calculated depending on whether you buy or sell the market, assuming your stake is £1:

 

You can then bet £1/ $1 / €1 per point on the movement of FX prices that we quote.

For this reason you must be aware that your losses can increase dramatically if the markets move substantially in the opposite direction to your trade. All spread betting profits are recognised as the winnings of a bet.

The “spread” in the phrase spread betting refers to the Sell (Bid) and Buy (Offer or Ask) price quoted by a spread betting company. A spread bet price always has two parts. The first is the BID or price you can sell at. The second is the ASK or the price you can buy at. This price is calculated by adding additional points around the live (or the estimated future) market price of a financial product. For example, if the EURUSD is betting at 1.2000 our quote might be 1.2000-1.2001

One of the problems for spread betting companies is the word ‘betting’ as this gives a false impression to the marketplace. Spread betting is in fact a highly adaptable betting tool. One of the main benefits of spread betting is that all profits are recognised as the winnings of a bet , and are therefore free of Capital Gains Tax † in the UK. Tax law can differ depending on jurisdiction.

Spread Betting compared to Stocks

Traditional Stock Broker

ROCE working: 4750 ÷ 14000 x 100%
Buy 10,000 shares @ 140p
Cash outlay (£14,000)
Sell 10,000 shares @ 200p
Gross profit £6,000
Stamp duty (£70)
Commission (buy/sell) (£100)
Tax @ 18% (£1,080)
Overnight financing £0
Net Profit £4,750
Return on Capital Employed 34%

Price Markets

ROCE working: 5890 ÷ 1401 x 100%
Buy £100 per point @ 140.1p
Cash outlay* (£1,401)
Sell £100 per point @ 199.9p
Gross profit £5,980
Stamp duty £0
Commission (buy/sell) £0
Tax** £0
Overnight financing (£90)
Net Profit £5,890
Return on Capital Employed 420%


† Tax treatment depends on the individual circumstances of each client and may be subject to change in the future.

Remember that the risk is still the same for either scenario.

As with all spread bets you do not own or owe the underlying asset. So, if you open a buy spread bet on a share you will not have any voting rights.

What are the differences between Spread Betting and CFDs?

Spread Betting is essentially for UK and Northern Ireland residents while CFDs are available to a global client base. Below is a table of the major differences between Spread Betting and CFDs:

Spread Betting CFD trading
Capital gains are tax free* Subject to Capital Gains Tax (CGT)*
Losses cannot be offset for CGT purposes* Losses can be offset for CGT purposes*
All contracts expire** No expiry (except future contracts)
Use a currency to trade in of your choice Currency based in country of origin i.e. if you trade Vodafone on the FTSE, you trade in £.  If you trade Google on NYSE, you trade in $
Trade using a stake of £/$/€ etc per point Trade a number of CFDs per point

* Under current UK law, which is subject to change and may differ in jurisdictions outside the UK.

** for gaming purposes even rolling contracts have a theoretical expiry date but this is many years in the future.

What is Overnight Financing?

Rolling CFD contracts incur a debit or credit for each day that they are held overnight.

Whilst it is normal for equity and index long positions to incur a debit and for short positions to receive a credit when overnight financing is applied, there are times when you may be debited for a short position, for example when interest rates are very low (NB overnight financing for FX positions is different).

How is Overnight Financing calculated?

The overnight financing for a rolling position can be calculated using this formula:

F = [ (P / U) x S x I] / B
F = Overnight Financing
P = Closing price
U = Unit risk
S = Size
B = day basis (365)
I = applicable interest rate

long positions: RFR + X% mark-up*
short positions:RFR – X% mark-down*

We apply a mark-up/down for overnight financing.

Can I place a trailing stop?

Trailing Stops are a risk management tool that allow you to manage your risk without restricting your potential profit. They can help you to secure your gains as the market moves in your favour and give you added flexibility as they automatically track your profitable positions. This means you don’t have to continuously think about monitoring your position and moving your stop manually.

Once you have set your Trailing Stop you need to set the distance you want your Trailing Stop away. If the market then moves in your favour, the Trailing Stop will move in that direction at a set size of increments. Minimum distances and set size of increments may apply to some Trading Platforms.

Please note that Trailing Stops are not guaranteed so you may still be subject to slippage in volatile market conditions, so it is not possible to have both a Trailing Stop and a guaranteed stop. There are no extra charges for selecting your stop order to be trailing.

Example of a Trailing Stop

Here is an example of how one might use a Trailing Stop.

Buy 100,000 GBP/USD at 1.6050.
The level of the Trailing Stop order is set at 1.6030.

If the market moves in your favour (higher) then the Trailing Stop will move in that direction according to the set size of increments applicable to that market. If it is set to increments of 10 pips, then if your GBP/USD position moves higher by 10 pips (to 1.6060), your Trailing Stop will move up 10 pips to 1.6040.

If GBP/USD continues to rally without retracing, then for every 10 pips it rises, your Trailing Stop will carry on stepping higher in increments of 10 pips.

If at some point GBP/USD does turn lower, then your Trailing Stop will remain in place at the last level it has stepped to, acting as a normal stop order.