Contracts for difference (CFDs)

What are CFDs?

1. A contract for difference (CFD) is an unlisted instrument that is an agreement between a buyer and a seller.
2. The two parties make a contract that the seller will pay the buyer the difference in value of a particular instrument on a daily basis for the period between when the contract is opened and when it is closed.
3. The buyer will in return pay the seller the difference in price if its value decreases.
4. The difference is determined by referring to an underlying instrument.

CFD contracts provide a means for an investor to hedge against risk exposure or to speculate when an exchange rate change appears imminent. CFDs enable investors to gear (leverage) their investment, while avoiding many of the costs and hassles of trading in the underlying instrument.

Trading CFDs is more advanced than normal equity trading and should only be attempted by individuals who are comfortable with the concept of gearing. 

Please note that CFD’s are traded via Standard Online Share Trading website but are offered and issued by The Standard Bank of South Africa Limited.

Why trade CFDs?

Utilising the Standard Online Share Trading platform, you can enjoy all the features and benefits of trading CFDs, such as:

1. Gearing which amplifies the movement of the CFD relative to the underlying share
2. Reduced trading costs (relative to equities and single stock futures)
3. Corporate actions (earn real dividends subject to DWT)
4. Discount day trading
5. Product simplicity (as compared with SSFs)
6. Short trading
7. Pairs trading
8. No expiry
9. Trading the underlying spot price.

Read more

Brochure
Download our brochure which explains in detail how contract for differences work and how to get started trading them.

Courses available

Face-to-face courses
Our free 90-minute educational presentation covers the basic principles of CFDs, their features, risks, benefits and examples of trades. We also cover margins, charges, executions and trading tips and strategies.

Existing clients can log into the platform to check course details, upcoming dates in your city and to make a booking.

New clients please phone our call centre for further information.

Start trading

New clients: Click here to register now with Standard Online Share Trading.
Existing account holders: To trade shares, please:

1. Log-on
2. Click on the OTHER PRODUCTS menu
3. Select CFDs REGISTRATION.