Categorized | CFD trading

Why trade CFD(Contracts for Difference)

What are the main reasons to trade in CFD when you can trade in the shares directly?

Leveraging to increase investment capacity

You can create a larger position without having to fund yourself in full. We leverage leverage for a variety of CFDs with a maximum leverage of 200: 1. And CFD CFD trading is not charged a commission, and if the transaction has a CFD CFD at maturity, there is no need to pay overnight financing costs.

Trade at your own timing

You can easily buy and sell gold and silver, stock indices and other products through your trading account, or invest in global equities according to local indices to see the CFD market for CFDs. Such tools can be traded 24 hours, so that retail investors can trade during timings they are not able to for shares.(example: when the stock exchange is closed for the day)

Easy to do more, short or hedge

You have a chance to make a profit, whether down or up. You can trade long or short with CFDs. If you believe that the price of an asset will fall, you can now use the CFD to short (sell) and then expect to buy back at a lower price in the future. Direct short selling of shares is not legal in many countries.

However, trading prices may also move in the opposite direction as you would expect, causing a loss.

Flexible contract size

You can choose the number of units to buy and sell. Unlike other markets, CFD investors do not have to be constrained by contract size. In addition, the use of  CFD trading, investors can also be sold in the relevant units of the index or commodity.

For example, a silver futures contract requires a minimum investment of 1 ounce. For some CFD trading platform, silver futures contracts require a minimum investment of 100.

 

Leave a Reply

 

Symbol Bid Ask Spread
EURUSD 1.16440 1.16460 2
GBPUSD 1.30180 1.30210 3
USDCAD 1.25060 1.25090 3
USDJPY 111.850 111.870 2
USDCHF 0.95250 0.95280 3
AUDUSD 0.79010 0.79040 3
NZDUSD 0.74220 0.74270 5
EURGBP 0.89430 0.89460 3
EURCHF 1.10920 1.10950 3
EURJPY 130.250 130.280 3
AUDJPY 88.380 88.430 5
GBPJPY 145.610 145.670 6
XAUUSD 1247.75 1248.15 40
XAGUSD 16.427 16.436 0.9