use a case study to illustrate how CFD’s (Contract’s For Difference) work. So lets take UK listed Tullow Oil (TLW) and assume the price is at £50. After our technical or fundamental analysis we have decided whether we want to sell (going short) or buy (going long) the stock (or the CFD). Say we go long (buy the stock) and decide to risk £1 on each point of fluctuation in the share price. (A point is worth a cent in this context) This means for every cent that the TLW shares move, the trader either gains or loses £1. Now the way you decide this £1 risk per point depends on the leverage (CFD dealers usually have a 3%, 5%, 10% or 20% options available on the amount of leverage) and the size of your contract with your CFD dealer. So if the WPL shares have gained 10 pence and want to take profits your profit would be 10 x 1 = £10 or if the share lost 10 cents then you lose £10. Trading CFD at times can be unpredictable. There are some cases that the sum of holding costs can exceedrelated articles：
The United Kingdoms’ Financial Conduct Authority (FCA), options .also knows the City’s Regulator, does not regulate binary options trading. According to the legislation in the United Kingdom, Binary Options Trading providers should be regulated by the UK’s Gambling Commission, yet, this law affects only in a case that firm has its servers (remote gambling equipment) stationed in the United Kingdom.
The European Union (EU) considers Binary Options to be a financial product. Under the EU financial services law, Binary Options Trading Brokers firms which are legally established and authorized in one European Economic Area (EEA) country are authorized to provide their services in any other EEA country, including the UK. Once certain procedural safe-conduct standards are met, the binary options brokerage company is listed on the FCA’s Register of financial services firms.
Firms offering these types of services in the UK will generally need to be authorized by the FCA. Many of the firms reported to us are not authorized by the FCA but claim to be based in the UK and often provide a prestigious city of London address. In reality, they have no physical presence in the UK and are not based at the addresses they provide.
As we see the legal status with Forex Trading is similar to binary options all EU-registered firms considered as if they are regulated to operate in the UK