Which of the following is NOT an advantage of CFDs?

CFDs, or Contracts for Difference, are financial derivatives that allow traders to speculate on the price movements of assets without actually owning them. One of the notable characteristics of CFDs is that they do not require the payment of stamp duty, which is typically a tax on buying and selling assets. This is because CFD transactions are considered contracts rather than transfers of actual ownership, which exempts them from such taxation.

The advantages of CFDs include the ability to use gearing, which can significantly amplify potential returns. This means that traders can control a large position with a relatively small amount of capital, effectively increasing their exposure to the market. Additionally, CFDs provide access to a wide range of markets, including foreign markets, allowing traders to diversify their portfolios easily. Lastly, CFDs have no set maturity date, giving traders flexibility in their trading strategies without the pressure of expiring contracts.

In contrast, the requirement to pay stamp duty does not apply to CFDs, making this the correct answer for the question regarding which is NOT an advantage.