CFD trading offers a great way to access and trade a wide range of international shares (Share CFDs). Thousands of individual Share CFDs can be traded from all points of the globe, 24 hours a day, all on the one trading account.

You can take CFD positions in US companies that you know and interact with regularly - Microsoft, Google, American Express, Boeing Co, Berkshire Hathaway, eBay, Exxon Mobile Corp, Hewitt-Packard Co and Tiffany & Co, just to name a few.

The UK market also has a number of well-traded and familiar stocks such as BHP Billiton, Rio Tinto, Vodafone and Xstrata PLC. This is particularly attractive as many CFD traders will have open positions in both BHP Billiton and Rio Tinto in Australia then continue to trade them in London after the close of the Australian market. Having these stocks on another exchange also enables traders to hedge CFD positions guarding against sharp market movements.

The mechanics of trading an international Share CFD are the same as trading an Australian Share CFD. Orders can be placed directly into the exchange's order book with instant execution and confirmations and positions can be managed from one screen, no matter how many different exchanges you trade across.

Currency Exposure on Share CFDs

Currency exposure is something you will need to consider on any international Share CFD trade. The deposit and any profits/losses, commissions, dividends and interest will be in the foreign currency while your account balance, unless you select otherwise, will be in Australian dollars. Therefore, a US$1000 profit on a Google CFD trade, assuming the AUD/USD exchange rate is 0.8000 will result in a profit of A$1250. On the other hand, if the AUD/USD was at 0.9000 the profit will only be A$1111.

The currency exposure can work for and against you; a favourable exchange rate may increase your profits, while a less favourable rate can reduce your profits. For larger, long-term Share CFDs trades it can be worthwhile hedging currency exposure - that is a topic in itself!

Trading CFDs may not be suitable for everyone so please make sure you fully understand the risks involved. Please consider our PDS before entering into any transaction with us.