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Contracts for differences (CFDs) are contracts between a buyer and a seller. The two parties agree to exchange the differences between the price of an underlying asset at the opening and closing of the contract. This is where the form of trade derives its name. CFDs are a type of derivative. This means they get their value from their underlying assets. So those who tease CFDs don’t trade any assets directly i.e. they don’t buy or sell the assets. They simply speculate on the price movements of the underlying assets. CFD contracts are usually settled in cash meaning that no Continue Reading →

Trading CFDs is a relatively new activity gaining lots of interest among forex traders. CFDs are derivative products. Before entering into the trade, the trader must sign a contract between you and your CFD broker. The agreement allows the broker to pay the trader the opening position and the closing amount difference. CFD trading is a complex and highly leveraged product. However, it boosts your trading portfolio by investing minimal capital. Your work as the trader is to speculate on the market value of the price, while your broker does actual trading. One of the most attractive features of CFD Continue Reading →

Contracts For Difference (CFD) is a method of trading where traders buy and sell assets without having to own the asset. CFDs work by opening up agreements with brokerages or other trading institutions and committing money to the contract. Here, you promise to buy or sell a particular asset at a specific price. To do this, you must pay something called a “margin,” which is essentially your down payment on the deal. The margin size will vary from brokerage to brokerage and can be as little as 5% of the total amount you’re putting in for your contract. Of course, Continue Reading →