CFD (Contract For Difference) trading enables you to speculate on the rise or fall of the price level or value of an underlying asset, including such asset classes as Currencies, Indices, Commodities, Stocks, Cryptocurrencies and ETFs.
One of the key advantages of trading with CFDs is that you can potentially profit from rising and falling markets. Conversely, potential loses can occur if an incorrect direction is selected. If you strongly believe that an asset's price is going to rise, you would then open a buy position. If you think that the asset's price is going to fall, then you would open a sell position.
Due to the fact you do not own the actual underlying asset, this gives traders the ability to enter and exit their trades quicker than any other form of trading.
CFDs is an agreement to exchange the difference between the current price of an underlying asset and its price when the trade is closed. With Profits or Losses being defined by how many “points” or "pips" are gained or lost.
CFDs are typically offered with leverage which means you only need to put down a portion of the investment’s total value. Leverage also multiplies the impact of price changes on both profits and losses. This means you can gain money and/or lose money very rapidly.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please click here for the CFDs risk warning which specifies the % of retail investor accounts that lose money on a 12 month period on our platform. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Comments
0 comments
Article is closed for comments.