Tag: CFD

Trading CFD’s? Three things that you should know

Trading CFD’s? Three things that you should know

Trading Articles
CFD, or Contract for Difference is a form of derivatives trading that offers certain distinct advantages compared to trading the security directly. Most notably, CFD trading is more commonly used for Stocks and commodities rather than spot forex. If you are considering trading CFD's then here are 5 things to bear in mind before you short or long that contract. But before we get into the details, a little bit about CFD's. Contracts for Difference or CFD for short is a contract that is agreed upon between the buyer and the seller. In most cases, the broker with whom you trade CFD's is the seller of the contract. During the term of the contract, if the value of the security increases, the seller pays you the difference and if the value of the security decreases, you end up paying the selle...

Checklist for Contracts for Difference trading

Trading Articles
Choosing the services and features offered by a reputable CFD provider is a main criteria when traders want to engage in contracts for difference trading. Contracts for difference trading gives traders the benefits of trading shares without having to physically own them. Contracts for difference mirror the performance of shares or an index. In essence, a CFD is a contractual agreement between a buyer and the seller to exchange the difference in the current value of the share, currency, commodity or index and its value at the end of the contract. If the difference between the opening and closing position is positive, the seller will pay the buyer. However, if the difference is negative, the buyer loses money and will have to pay the seller. Read this article that explains Contracts for Diff...

CFD Explained

Trading Articles
CFD, or Contracts for Difference, is a financial instrument similar to an index or share which allows you to trade an underlying index, share or commodity contract without having to own the underlying asset itself. The CFD price is the price of the underling asset (whether it is a share, index, or future). If the price of the underlying asset goes up, so will the price of the CFD. A major difference is that there are no exchange fees and many of the inefficiencies of trading the underlying shares on the exchange are eliminated. Also, CFDs allow you to use the power of leverage which is not generally available in equity products. As a result, CFDs have grown in popularity dramatically over the past few years. Ava Index offers CFDs with zero commissions and very attractive margin requirem...