CFD Trading – Contracts For Difference
CFD Trading has increased in popularity over the last several years and is now available for all (where permitted by local regulations).
Contracts for difference (CFDs), allow individual investors to trade a large array of financial products, such as indices and commodities without having to physically own them. CFDs mirror price movements of popular traded products, usually of future contracts, and allow individual investors to use common trading tools, such as technical analysis, fundamental analysis and well known strategies to capitalize on potential market trends.
Like Forex, CFDs have become a popular form of investment as they allow the use of leverage. This basically means that with a small investment you can maximize your purchasing power by up to 50 times while only risking your initial investment.
- 1 Advantages of CFD trading
Advantages of CFD trading
- You get access to a variety of well-known stock indices and commodities without having to physically purchase them
- Maximize your portfolio’s potential by using leverage on Indices and Commodities of up to 1:50 (where permitted by local regulations)
- Cut your portfolio’s expenses by trading Indices and Commodities commission free
Our index and commodity contracts are expiring contracts based on underlying future contract’s prices. Because the CFD price is based on the price of the underlying asset, peak trading hours are typically the hours when the exchange for the underlying asset is open. Therefore U.S. exchange based contracts will tend to receive an increase in volume around the U.S. trading hours.
Recently oil trading has become a popular financial investment, allowing retail traders to benefit from the fast paced movements of the commodity or hedge against currency depreciation. In the past oil trading was only available to large institutions, central banks, hedge funds and high net worth individuals. Thanks to the development of the Internet, more and more small investors are now taking advantage of the daily fluctuations, and the opportunities to benefit from this commodity.
WTI plays an important role when dealing with risk management within the energy sector, as it has the most trading liquidity, volume and transparency.
The price of WTI is often referenced in news reports in oil prices, alongside the price of Brent crude which originates from the North Sea. Trading oil, which includes WTI as well as other types, offers traders a dynamic method of trading commodities online. Oil trading prices are streamed live, giving each trader instant exposure and access to the enticing and lucrative world of commodity trading.
Advantages of Trading Oil:
- Build a diverse, multi-product portfolio in one account – add oil trading to foreign exchange or other commodities for an ideal investment mix
- Certain currencies, commodities and indices may have a correlation to oil, which can also provide traders with useful insight helping with their trades
- Oil prices are volatile, changing on a daily basis which supplies traders with the chance to take advantage of significant price changes
Trading the S&P 500 Index (SNP/USD)
We are always looking for new and exciting investment opportunities for our clients. As well as Forex and commodity trading, you can now also take advantage of our S&P 500 CFDs, allowing you to benefit from this index’s movements with leverage of up to 1:50
The S&P 500 index follows the common stocks of 500 large publicly traded companies that trade on either the NYSE or NASDAQ. As it primarily focuses on US based companies, many believe that the S&P 500 provides a distinct indication of where the US economy currently stands and where it may lead to in the future.
Advantages of trading the S&P500 using a CFD
- Expose your portfolio to the US market by trading a market leading index in the form of a CFD (where permitted by local regulation).
- Maximize your purchasing power by using customized leverage of up to 1:50 (where permitted by local regulation).
- Cut your portfolio’s expenses by trading indices and commodities commission free.
- Use advanced trading strategies such as Shorting or Hedging to capitalize on all market directions.
Trading the NASDAQ-100 Stock Index (NDQ/USD)
The range of CFDs that we offer continues to increase and the latest addition of the NASDAQ-100 ensures that we are providing you with the most exciting trading possibilities. As a perfect complement to our other CFDs, Forex and tradable commodities, the NASDAQ-100 has been added to our platform. You can benefit from its movements using a leverage of up to 50 which basically allows you to trade the NASDAQ index for an amount that is up to 50 times your initial investment.
Listing the 100 largest non-financial companies from the U.S. and around the world, the NASDAQ-100 is one of the most respected stock market indices. The NASDAQ-100 stands apart from many other indices owing to the criteria for joining the list.
Advantages of trading the NASDAQ-100 using a CFD
- Diversify your portfolio by having numerous options in one trading account. Now you can trade Forex, Commodities and indices, such as the NASDAQ-100, with the click of a mouse (Where permitted by local regulations)
- Our NASDAQ-100 CFD mirrors the price movement of the underlying asset allowing you to take advantage of the NASDAQ’s trends while not having to physically own the asset
- Maximize your profit potential by using customized leverage of up to 1:50
- Cut your portfolio’s expenses by trading Indices and Commodities commission free and without stamp duty
It is important to note that trading CFDs involves a certain level of risk, but due to our negative balance protection program you can never lose more than you invested.
FUTURES TRADING CFD
- Benefit from excellent market liquidity on all major contracts, as well as tight spreads
- Trade agricultural products, oil and energies, base metals, precious metals, bonds, currencies, short-term interest rates, meats, softs and stock indices
- Trade instruments on live market prices around the world
- Use Limits, Stop-Limit, Stops and Trailing Stops, which can be placed through the trade module, order module or account summary modules
- Create a varied online investment portfolio on one single account – choose from a broad range of Futures , Forex, CFDs, Stocks and Options and create an ideal investment portfolio.
A Future is a contractual agreement to buy or sell a particular commodity or financial instrument at a pre-determined price on a specific date in the future.
Futures contracts can derive from a variety of assets, from traditional commodities like corn, wheat, and orange juice to different asset classes, like government bonds, interest rates, energies and stock indices. Futures contracts detail the quality and the quantity of the underlying asset; they are standardized to facilitate trading on a Futures exchange.
Futures are highly liquid financial instruments, meaning individuals can trade on tight spreads. The transaction costs for them are low, and their pricing is transparent due to the level of specificity found in futures contracts and the regulations imposed by the various exchanges.
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