Category Archives: What is CFD Trading

CFD Trading Example

Written on December 28, 2020 at 5:52 am, by

A Contract for Differences, commonly known as CFD, is an agreement where the difference in settlement of a financial derivative’s open and close prices is resolved with a cash settlement. CFDs exist for multiple assets, including stocks, indices and commodities, although no delivery of actual goods or securities happen when trading a CFD. CFDs areContinue Reading

Advantages of CFD Trading

Written on December 28, 2020 at 5:50 am, by

So why trade CFDs? For one, trading on margin. CFDs typically allow higher leverages than traditional trading like buying stocks on an exchange. There are also usually less regulations surrounding the CFD market, which allows CFDs to have lower capital requirements. What follows is a range of advantages: Trade on a wide range of marketsContinue Reading

The Potential Pitfalls of CFD Trading

Written on December 28, 2020 at 5:48 am, by

CFD trading can be a risky business. As we have mentioned, leverage allows you to take positions that are larger than your deposit size. It means you can potentially amplify your profits, but it also means that the risk of large losses is greater. If you are a beginner, then the most important thing isContinue Reading