Comparison table
How derivative products compare
| CFDs | Futures | Covered warrants | Product options | Spread bets | |
|---|---|---|---|---|---|
| Stamp duty | No | If stock futures exercised | No | If exercised | No |
| CGT on gains | Yes | Yes | Yes | Yes | No |
| Margin required | 1-20% | 5-10% | n/a | 5-10% | 1-20% |
| Dividend adjustment | Longs – 90% receivable Shorts – 100% payable | Yes | No | Yes | No |
| Commission per transaction | 0.1% to 0.25% of total transaction or dealing spread | £1.50 to £4.00 | Online Nominee - £15 Telephone Nominee - 1% on first £5,000, then 0.2% thereafter with minimum of £35 | £1.50 to £4.00 | None |
| Spreads | Deal at cash market price of with market maker spread | Tight in index futures; less tight in stock futures | from £0.002 | Tight in index options and liquid stock options | Varies with firm, less on daily bets |
| Potential strategies | Short/long, hedge, cash equivalent, leverage | Short/long hedge, synthetic cash, leverage | Cash Extraction, Speculation, Hedging, Diversification & Straddles | Array of long, short, spread and arbitrage strategies | Short/long, hedge, leverage |
| Pricing | Same as cash underlying | Futures fair value based on carry model | Options pricing model | Options pricing model | Defined per point stake |
| Stock | No | No | No | No | No |
| tax laws may change | |||||
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