Tag: contracts for differences

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...

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...