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CFD Trading

CFD trading is the method of speculating on the underlying price of an asset – like shares, indices, commodities, forex and more – on a trading platform like ours. A CFD – short for ‘contract for difference’ – is the type of derivative that enables you to trade the price movements of these financial markets with us.

With this form of trading, you don’t own the underlying asset – you’re only getting exposure to its price movements. In recent years, CFDs have become the most popular way for online investors to trade commodities, indices, currencies, and stocks. Since CFD trading does not involve the actual asset and operates independent of the market, it allows for greater flexibility than traditional trading — for example, access to foreign markets, leveraged trading, fractional shares, and short selling.

Buying or selling CFDs means you’re agreeing to exchange the difference in price of an asset from when your position is opened to when it’s closed. Find out the benefits, as well as the risks, of CFD trading – including leverage, short selling and hedging. Interested in trading CFDs with us?

  • CFD traders enjoy high leverage trades compared to traditional trading.
  • Traders get round-the-clock access as they are offered products from across major markets in the world, more than 4,000 markets in fact.
  • CFD brokers offer various CFDs like stock, treasury, index, commodity, currency, and sectors.
  • You can go long or short with CFDs.

Why Invest In CFDs

CFDs enable you to stretch your investment capital further, as you only have to deposit a fraction of your trade’s full value to open a position. The deposit you’ll have to put down is called a margin. While this lowers the cost of opening a trade, it can also amplify your losses. This is because CFD profits and losses are calculated on the full size of your trade.

CFDs are designed to mimic trading their underlying market fairly closely. This means you simply buy and sell CFDs as you would the underlying asset.

If you have other active trades or investments, you can use CFDs to hedge risk in both your leveraged and non-leveraged portfolios.