Tag: cfd brokers

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...
Introduction to CFD Trading & CFD Brokers

Introduction to CFD Trading & CFD Brokers

Trading Articles
Contract For Differences, or CFDs for short enable the investor to trade on the price action of stocks and indices. CFD’s are high risk derivatives and can be traded without physically owning the underlying assets that are being traded. CFD's are popular because they can be traded on leverage, which is otherwise impossible. CFD trading makes for an ideal trading option for those looking for flexibility in terms of maximizing their profits whilst allowing them to hedge their risks. Trading CFDs can be efficient due to the market that they are market participants, thus allowing the investor to keep their costs low and be able to trade during market volatility. However irrespective of the flexibility offered by CFD’s they are not suitable for all kinds of investors. A CFD trade will act

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...