Derivatives
Derivatives on single shares
Stock derivatives take a listed share and reshape it: more leverage, a barrier, or a defined payoff. They are for a view on one company when a plain CFD is not the shape you want. Read the contract terms on the symbol before you treat it like the share.
01 — Derivatives
Read the terms first
Expiry, barrier, ratio and financing change the result even when your view on the company was right.
Open account
02 — Derivatives
Earnings gaps
A derivative on a single share inherits that share's earnings gap. The product can finish on the open.
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03 — Derivatives
Path matters
Two products can both 'be long' the same company and finish in different places because of a barrier or a daily reset.
Open account
04 — Derivatives
Start from the share
If you cannot explain the company's next event, do not add a derivative on top of it.
Open account- Single-company risk
- One name
- Barrier or expiry
- Terms
- No ownership
- Not stock
- Cash result
- USD
Index futures and share CFDs
Exchange futures on the big indices, then single-name CFDs.
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Read the terms first
Expiry, barrier, ratio and financing change the result even when your view on the company was right.
Earnings gaps
A derivative on a single share inherits that share's earnings gap. The product can finish on the open.
Path matters
Two products can both 'be long' the same company and finish in different places because of a barrier or a daily reset.
Start from the share
If you cannot explain the company's next event, do not add a derivative on top of it.
What sits in this menu
The desk groups products whose underlying is a company, rather than an index or a fund.
- Share CFDs for a straightforward long or short.
- Turbos when you want a knockout and a capped premium.
- Any further single-stock contract the symbol list shows, with its own terms.
- Corporate actions still adjust the underlying, and the derivative follows.
A discipline that keeps people solvent
Derivatives fail when the structure is ignored.
- Write down the maximum loss before you buy.
- Write down the date or the price that ends the trade.
- Do not average down through a barrier.
- Do not hold a complex product just because closing it shows a loss.
Step 1
Pick the company
Have a view on the share first.
Step 2
Pick the structure
CFD if you will manage the exit. Turbo if you want the barrier to manage it.
Step 3
Confirm the symbol
The name on the ticket must match the terms you just read.
FAQ
Are these options?
Only if the symbol is an option. A CFD and a turbo are different contracts. The ticket names the product. Do not assume an options payoff.
Do corporate actions break the trade?
Splits, dividends and mergers are adjusted. You should see the adjustment on the position rather than a silent change in economic exposure.
Can I convert a derivative into shares?
No. These contracts cash-settle. They do not become a shareholding.