Hedging With CFD Trading From City Index
Hedging with CFD trading from City Index offers a cost-effective alternative to traditional hedging. For example, if an investor possesses £5,000 of Vodafone shares and suspects that the share price might decline over the coming months, they might sell their shares and then repurchase them once the value has fallen. As a consequence, however, they would have to pay stamp duty, two lots of dealing commission and potentially capital gains tax.
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