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CFDs, Oil, Indices, Metals

CFDs, Oil, Indices, Metals

Forex Futures and Contract for Difference

 

 

CFDs, Oil, Indices, Metals

Forex Futures and Contract for Difference


As with Shares, CFD investors benefit from normal market movements. Clients’ open positions are valued in real time, with every tick of the market. Profits or losses similarly are credited to or debited from the clients account equity in real time.
CFD stands for Contracts for Difference.CFD trading is simply margined trading. When the forex futures position is closed you pay or receive the profit or loss made on the trade.
A CFD gives you all the benefits of the underlying cash equity whilst avoiding many of the typical costs associated with dealing in physical shares.

Advantages of Contracts For Difference (CFDs)

 

  • Contracts For Difference (CFDs) are traded on margin so you can maximise your trading capital due to leverage.
  • You can profit from falling or rising markets by trading long or short.
  • A single account can give you access to far greater range of international financial markets .
  • You can limit & manage your risk using a stop losses and limit orders.
  • The ability to go long and short
  • Low margin requirements and no commissions.
  • Immediate execution on transparent, executable prices
  • Earn overnight carry for short CFD positions
  • Trade CFDs directly from your charts

 

 

CFD Terminology

Term

Definition

Contract for Difference (CFD)
An agreement between a dealer and a buyer to deal in the difference amid the opening and closing price of a certain financial instrument.
Contract Size
The contract size, which is ascertained by dealers, depicts a minimum amount that can be traded. Contract sizes may differ based on the fundamental market being traded and the peril craving of the trader.
Diversification
To pick a broader range of markets to trade in order to lessen risk exposure integrated in one particular instrument.
Guaranteed Stop
An order that lays down exactly at what price you will leave the market. This may need an additional charge, but may shield you from market instability.
Leverage
Leverage provides the trader the prospect of controlling a larger CFD contract with a part of its actual value.
Long Position
Leverage provides the trader the prospect of controlling a larger CFD contract with a part of its actual value.
Margin Requirement
A sum of money that should be paid to the CFD provider to sustain your positions.
Short Position
To go into a market by selling in expectation of generating a profit.
Spread
The difference between the purchasing and the selling price of a financial instrument.