What is a CFD - FAQs
Worked Example
CFDs on what shares?
1) What is direct market access?
2) What is the minimum account opening size?
3) On what stocks can I trade CFDs?
4) How do I execute a CFD?
5) How do I access my account?
6) How do corporate actions affect my CFDs?
7) What security precautions have been taken to secure access of my account on-line?
8) How are dividends treated?
9) Do I have voting rights on the underlying stock?
10) How long can I hold a CFD?
11) Will I receive interest on my funds?
12) Why use GNI touch?
1) What is direct market access?
When using the GNI touch® on-line trading platform, you have the opportunity to interact directly with the SETs and SETSMM orderbook. As CFD prices
are struck using the underlying reference share price, this means that you only ever pay true market prices and you can even 'deal within the spread'.
By dealing at the best market prices, it is possible to save money compared to dealing with companies that make you deal at their own prices.
In effect you become a price maker rather than a price taker. This means there are no requotes and no "dealer refer" delays when trading.
Therefore you are in complete control of your point of entry and exit in the market.
2) What is the minimum account opening size?
We require a minimum of £5,000 to open an account. Alternatively, you can lodge existing share holdings with us, where appropriate.
3) On what stocks can I trade CFDs?
Tradable markets include UK, US, Canada, Germany, Austria, France, Holland, Italy, Spain, Finland, Belgium, Sweden, Norway, Denmark, Ireland,
Switzerland, Greece, Portugal, Finland, South Africa, Hong Kong, Australia, Japan, Singapore.
4) How do I execute a CFD?
Once you have opened your CFD account and deposited the initial margin, you can trade via the GNI touch® on-line platform or over the phone -
or a combination of both.
5) How do I access my account?
GNI supports an on-line system whereby all clients can access their close of business account via a web-browser. Accounts are valued overnight.
Statements and contract notes are also sent by post, if required.
6) How do corporate actions affect my CFDs?
Corporate actions, special pay outs and dividends that affect a stock are reflected in the value of your CFD account. You will never be better or
worse off as a result of such corporate actions, which almost always replicate the behaviour of the underlying stock.
7) What security precautions have been taken to secure access of my account on-line?
Communication with all GNI's on-line systems is protected using industry-standard 128-bit encryption technology. In addition, GNI touch's internal networks
are secured by state-of-the-art firewall software.
Our trading systems are built using a multi-layered approach, so that in the unlikely event of one layer being compromised, the system as a whole is
still secure.
Finally, our sophisticated order management system verifies each order against pre-defined rules, instantly highlighting and rejecting anything unusual.
In order to keep your account completely secure, you must not divulge your username or password to anyone, you should use a password that is
difficult to guess, and you should change your password frequently.
8) How are dividends treated?
If you hold a long CFD, you will be credited the value of the dividend on the ex-dividend date.If you hold a short CFD, you will be debited the
dividend on the ex-dividend date.
9) Do I have voting rights on the underlying stock?
CFDs do not entitle you to any rights in connection with the underlying reference shares.
How can I transfer positions to you from my existing stockbroker?
This is simple and normally takes no longer than a
couple of days. We will need details of the stocks we can expect to receive and where they will be coming from. We will organise the rest. We do
not charge for stock transfers.
10) How long can I hold a CFD?
There are no expiry dates on CFDs, so you can run a position, long or short, for as long as you like.
11) Will I receive interest on my funds?
Yes, your account will be credited interest on all monies deposited in your CFD
account monthly, based on the daily cash positions during that month, as long as your credit balance is above £10,000.
12) Why use GNI touch?
GNI touch is the platform that continues to pioneer the way for CFD trading. Our aim is for you to profit from the experience. So we strive to provide
you with the best tools for trading, the best research and the best support.
GNI has been providing high quality trading services for over 25 years. We believe we offer the best overall CFD trading service available, due to the
combination of our market-leading software - which provides Level 2 information - and our highly experienced broker team who are available to discuss
trades and act as a single point of contact for all issues relating to your account.
GNI touch is a trading name of Man Financial Limited a wholly owned subsidiary of Man Group plc, which is listed in the FTSE 100 index with a market
capitalisation of around £10 billion.