Why trade CFDs with Hugo?
Go long or short on 9,000+ instruments with tight spreads and low commissions.
- Pricing from ccy 0.02 per CFD
- Free CFD trading support from Hugo
Why trade CFDs with Hugo?
Trading in CFDs means you need less money to spread and diversify your investments or trades. But like all other investment instruments, you need to know exactly what you are signing up for. You can compare CFDs with buying a house with a mortgage. Based on the risk you can lend more or less money to finance your dream home. When trading or investing in CFDs you have to lay down a certain percentage of the price of the underlying asset. But be aware: don’t buy a villa when you can’t afford it…
That is exactly why you can count on Hugo. We will help you find the right way to use CFDs in your portfolio. That way you can rest assured that you will benefit from all the world’s leading platform has to offer.
Why trade CFDs with Hugo?
Trade US stock CFDs from USD 3 and US Wall St 30 from 1.4 points.
Access 9,000+ CFDs
CFD trading on single stocks, indices, forex, commodities, options and bonds.
Benefit from integrated Trade Signals, news feeds and innovative risk-management features.
The Hugo team consists of real expert investors, happy to answer all your questions.
Get access to 9,000+ CFDs from one account
At Hugo, we aim to offer the widest possible selection of assets.
Single stocks and ETFs
CFDs on 8,800+ single stocks and 675 ETFs traded on the world’s biggest exchanges.
Tight spreads on 29 index-tracking CFDs, including Germany 30, US 500, UK 100 and more.
CFDs on seven FX pairs, including EURUSD, EURGBP, GBPUSD and AUDUSD
CFDs on five government bonds, including the German 10-year bund and French 10-year OAT.
19 commodity CFDs covering energy, agriculture, metals, softs and emissions.
15 index option CFDs, including the SPX, DJX, ESX and OESX.
Risk warning CFDs
Danish banks are required to categorise investment products offered to retail clients depending on the product’s complexity and risk as: green, yellow or red. For further information click here. A CFD is categorised as a red product as it is considered an investment product with a high complexity and a high risk.
Spanish risk category
In Spain investment products offered to retail clients are categorised using the levels 1 to 6, depending on the product’s complexity and risk. For further information click here. A CFD is categorised as level 6 from 6, an investment product with high complexity and a high risk.
Safe Trading account
Saxo Bank is a member of the Danish Guarantee Fund. In the event that a Danish bank should suspend its payments or go into bankruptcy, client deposits are guaranteed by the Fund with up to EUR 100,000 for cash deposits. Cash deposits are calculated as the net free deposit after deduction of any debt to the bank.
Trade CFDs on our award-winning trading platform
SaxoTraderGO is our powerful yet easy-to-use platform. Trade from your PC, Mac, tablet or smartphone.
Powerful CFD trading tools
Benefit from extensive charting with 50+ technical indicators, integrated Trade Signals, and innovative risk-management tools.
Access 40,000+ instruments
Access 40,000+ instruments. Trade FX, FX options, CFDs, stocks, ETFs, futures, listed options and bonds from a single cross-margin, multi-currency account.
What are CFDs?
CFDs are a contract between two parties stating that the seller will pay to the buyer the difference between the current value of an asset and its value at contract time (or vice versa if a negative amount).
More about CFDs
Contracts For Difference (CFDs) are specialised and popular Over The Counter (OTC) financial derivative products which enable you to trade on the price movement of financial assets Indices Futures, Commodity Futures, Cryptocurrency, Shares and Exchange Traded Funds.
They enable clients to trade freely without actually owning the underlying asset or acquiring any rights or obligations in relation to the underlying asset. The main benefit of trading CFDs is the flexibility to trade against the price movements without actually buying or selling the physical instrument.
CFDs derive their price from the underlying asset. You can trade CFDs if you believe the price of a financial instrument is likely to go up in value (strengthen) and if you think it is likely to go down (weaken). Your profit or loss in online CFD trading is determined by the difference between the price you buy at and the price at which you sell.
Leverage and Margin
Benefits and risks of leverage
Trading on margin means you can gain the same amount of market exposure by depositing just a small fraction of the total value of your trade. This leverage can be useful to CFD traders because it means that they can put their money to use elsewhere.
Leverage can help magnify your returns which is great news if the market moves in the direction that you expect. However, the key risk with leverage is that it can magnify your losses in exactly the same way as your gains.
There is the potential to lose part and more of your investment if you do not manage your risk efficiently. Remember with leveraged trading your capital is at risk.
For instance, say the margin requirement for a particular market is 5%. This means you would be required to deposit 5% of the full value of the trade as an initial margin to open the position.
Share trading vs CFDs using leverage
You want to buy 1,000 shares in company ABC and the current share price is 250p. Your total investment is £2,500. The equivalent as a CFD trade would be to go long (buy) 1000 CFDs in company ABC.
Long and short
A long position when trading in CFDs is when a trader purchases the asset. This will mean that the asset will rise or see an increase in its value over the lifetime of the contract.
Long term trading has a higher level of forecasting ability, allowing traders to act on lower price market moves. Trades normally last from month to more than a year.
The short position occurs when the trader feels there will be a decline in the asset value and a ‘sell’ is selected, but there is an intention from the trader to buy the contract back at a later stage.
E.g.: A short seller’s expectation is that the price of the asset will fall over the life of the contract. If his prediction is wrong and the price of the asset starts to rise the open trade will sustain a loss, which is calculated by the difference between the opening and closing price of the asset over that time. The reverse is true should his open trade indicate that the asset chosen would decrease in value.
Short term trades can allow profits from short time spans even up to minute-to-minute moves. Limiting financial costs is an advantage in short term trading.
CFDs can be traded online 24/5 if the relevant underlying market is open.
The information on investment products is for general information and is not intended as advice. In spite of the fact that Hugo Investing takes care of the compilation and maintenance of these pages using sources deemed reliable, Hugo Investing cannot guarantee the accuracy, completeness and actuality of the information provided. If you use the information provided without verification or advice, do so at your own account and risk. We advise you to always check any transactions and not to invest in financial instruments that you do not understand the risks. No rights can be derived from the information on these pages.