iFOREX Education - What is CFD trading?



For the full list of tradable CFD instruments visit http://bit.ly/1P9S6dg Capital is at risk Contract For Difference, popularly known as C.F.D., is a popular investment method offering major advantages over other investment practices. The Contract stands for the deal itself, the action of buying or selling a financial asset through a broker. The Difference relates to the price change occurring between opening and closing the deal, used to calculate profit or returns. Here’s an example of a contract for difference on the prices of Gold: Ed wants to invest in gold, thinking its price will go up in the near future. Trading gold prices in the form of a CFD allows Ed to: Open a deal without the need to physically purchase, transport and store gold bars. Ed also gets up to 400 times more gold with his investment because of leverage, meaning he risks a significantly smaller amount. Act fast on market movements and potentially profit from any market direction.

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