We have two types of trading account at Pelican. Spread bet and CFD accounts.
Spread bet accounts are more popular with UK nationals because all profits are tax free. A spread bet account is a BET on the direction of the market. You will win or lose money depending on whether you have called the direction of the market correctly.
CFD stands for Contract for Difference. CFD accounts are more popular with European nationals. With a CFD account, you are buying CONTRACTS in the underlying market. You will make or lose money depending on the DIFFERENCE in value between the price you paid for the contracts and the current market price.
Practically, the mechanics of the accounts are almost identical.
There are only two key differences, firstly Spread bets trade in £/point and
CFD's in contracts.
Secondly, CFD's trade in the underlying currency for that market. Don't worry we calculate this for you.
Please note that the minimum number of contracts you can trade can vary from 1, 10 or 100. Details can be found in the top right hand corner of each market page (tap the 'i'). The minimum number of contracts will typically always represent the equivalent of £1/point.