FXTM information and reviews
FXTM
93%
IronFX information and reviews
IronFX
92%
Libertex information and reviews
Libertex
91%
ETX Capital information and reviews
ETX Capital
90%
FxPro information and reviews
FxPro
89%
FIBO Group information and reviews
FIBO Group
88%
EUR/USD
1.2146
GBP/USD
1.4101
USD/JPY
109.375
USD/CHF
0.9017
USD/CAD
1.2108
EUR/JPY
132.8458

CFD (Contract for difference) Trading with ForexTB


2 February 2021

A CFD (Contract for difference), offers traders the opportunity to speculate on, and possibly earn a profit from the price movement, without actually physically owning the underlying asset. By using a CFD (basically a contract between a buyer and seller that specifies a certain purchase price), it allows for profits or losses based, on the change in the price of the underlying asset during a specified time frame. CFDs can be traded in all the major markets, Forex, Stocks, Indices, Commodities and Cryptocurrencies.

How to trade CFDs?


When you choose to trade CFDs, you are predicting the movements of a certain asset in the market. If you speculate that the asset is going to rise, you would buy, and if you predict a fall in value, you would sell the asset. As you do not own the asset itself, when you invest in a CFD, you are investing in the chance to earn from the movement of the asset.

When trading CFDs, it is important to always remember that you can lose your investment if the asset’s price should move in a direction opposite to your position.

Here are some examples:


Example 1: You’ve read reports that indicate that the Google stock will rise in the next few days. You enter our trading platform and watch its behaviour on our live, real-time graph and decide you agree. However, if the stock drops, you would realise a loss.

Do you Buy or Sell?

In this case, you have predicted that the price of the Google stock will rise and you would click to buy. If the stock does in fact rise, you would earn a profit from the difference in price. However, if the stock drops, you would realise a loss.

Example 2: You were listening to your favourite financial podcast and heard that an important announcement in the U.S. is about to be announced which could cause the price of the S&P 500 index to plummet. After doing your own research, checking graphs and behaviours, you agree that it will drop.

Do you Buy or Sell?

In this case, you would click to sell, as you speculated that the price would drop. If the price of the index indeed plummets, you would earn a profit from the price movement. However, if the stock drops, you would realise a loss.

#source

Related

Guru Capital Reaches Agreement to Acquire Oval

Guru Capital is pleased to announce an agreement has been reached today for the acquisition of substantially all the assets of UK based Fintech company Oval Money Ltd...

17 May 2021

Spread Betting with FXCM

Financial spread betting is a premier way for residents of the U.K. to engage the capital markets. Spread bettors enjoy tax-free proceeds and the opportunity...

17 May 2021

Cryptocurrency Trading with ForexTB

Cryptocurrencies are web-based digital currencies that use cryptography to secure the financial transactions. A feature of cryptocurrencies, is that they are generally...

17 May 2021

Is the Recovery Finding Resistance?

One of the key market drivers for the US economy and the US Dollar is the monthly employment figures. These figures include the Non-Farm Payroll, the Unemployment Rate...

17 May 2021

Decrypting crypto with Libertex

Cryptocurrencies have been around for well over a decade now, but it's safe to say they've only really been in the public eye since the first big crypto bubble of 2017-18....

14 May 2021

FxPro Trading Platform: Elevate your trading experience

As a global leader in CFD trading, here at FxPro we are always looking to expand our product offering, and provide the most convenient, yet feature-rich trading platforms...

13 May 2021


Editors' Picks

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.