Sunday, February 1, 2015

Exchange traded products (ETPs)

Exchange traded funds (ETFs) are investment products that aim to replicate the movements of a particular stock index.
Exchange traded commodities (ETCs) work in a similar way, either tracking specific commodities or an index of diversified commodities.

When might you trade on ETPs?

  • To track a basket of shares or goods with a single transaction
  • ETPs can have capital gains tax advantages over funds and index trackers*
  • ETPs are sometimes the only way to access exotic markets

Benefits

  • Combine what would otherwise be several trades in a single transaction
  • Continuous pricing means you can trade at any time during market hours
  • ETFs have the same level of flexibility and transparency as shares

Costs and details

See our ETP costs and details within the spread betting shares list and CFD shares list.
*Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.

Sectors

Take advantage of strength or weakness in a particular industry with a sector spread bet or CFD. We offer more than 35 UK and Australian sectors, including banking, mining and general retailers.

When might you trade on sectors?

  • To take a position based on knowledge or news about a particular sector
  • To hedge against weakness in a sector within a strong overall index

Benefits

  • Protect against company-specific news that could see an individual stock buck the overall trend of the sector
  • Target gains within a specific sector rather than dilute profits with an overall index position
  • There tends to be less volatility across a whole sector than in individual shares

Costs and details

Bonds

Take advantage of the inverse relationship between long-term interest rates and bond prices with our government bond markets.

When might you trade on bonds?   

  • To back your judgement on future changes in long term interest rates
  • To hedge against existing government bond holdings

Benefits

  • Choose from a comprehensive selection of global government bonds
  • Our contracts are off-exchange, so you can deal in fractions of contracts
     

Costs and details

 
Spread betting
spread
Normal CFD
contract spread
Long-term Gilt22
Short-term Gilt22
German Schatz11
Long-term BTP Italian Government Bond44
 All markets and chargesAll markets and charges

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Interest rates

Take a position on the future short-term (quarterly) direction of a range of global interest rates.

When might you trade on interest rates?   

  • To back your judgement on future changes in short-term interest rates
  • To hedge against other investments affected by interest rates, such as mortgage repayments

Benefits

  • Choose from a broad selection of global money markets
     

Costs and details

 
Spread betting
spread
Normal CFD
contract spread
Australian 30-Day Interbank Rate11
Euribor (3-month)11
Eurodollar (3-month)22
 All markets and chargesAll markets and charges

Other markets

Expand and diversify your trading with our niche range of markets
Losses can exceed your deposits