Derivatives

BEO Financial offers a range of derivatives for investors the suit the risk classification. Our two main areas are contracts for difference and financial spread trading. Below is an overview of contract for difference.

CFDs – Account overview

Get access to thousands of underlying UK, US and European equities, as well as major stock indices, sectors and currencies. Go long if you think prices will rise, go short if you think they’ll fall. Of course, Contracts for Difference(CFD) trading may not be for everyone, as you could quickly lose more than your initial deposit. BMO Financial CFD accounts are available to individuals and companies alike. With a CFD Trading account you can take advantage of:

• Low deposit requirements.
  For example, take a €10,000 position with a deposit of only €1,000
• Low financing rates of LIBOR +2% on long equity overnight position
• Interest earned on short positions.
  (Held for more than 1 business day)
• Low commission rates of just 0.15% on share trades
• No stamp duty on shares*
• Trade CFDs with CFDs & Financial Spread Trading or sign up for Equities, which gives you access to Level 2 data, streaming Dow Jones news, prices and analysis and allows you to trade CFDs, equities, Shares and Funds from one platform
• The liquidity to execute larger trades, faster
• Small minimum dealing sizes
• Open a CFDs account

An intelligent way to diversify your portfolio

A CFD is your agreement with CFDs to exchange the difference between opening and closing prices when the contract ends. You’re not buying / selling rights to the underlying assets, but speculating on the movement of a share, a sector or a market. Some points to note are:

• Profits from CFDs are subject to UK capital gains tax and losses are off-settable against tax
• CFD prices mirror the market price for the underlying holding with an explicit commission charge deducted from the account. You can even carry long positions overnight for a small additional charge
• CFDs greatly amplify your profit potential because you deposit as little as 2% of the value of the underlying holding. Please remember though that potential losses can also be greater and you may need to deposit more funds to maintain your position. CFD trading can be High Risk and not suitable for every investor.