CFD Trading

CFDs – basic information

CFD stands for contract for difference. It comprises a buyer/seller agreement. The chief condition set out in this agreement is that the seller will provide the buyer with the difference between the asset value at agreement time, and the value at present. CFDs are becoming more and more attractive of late.

In FxtPremium we have a range of CFDs you can select.

CFDs are used often as a way to hedge portfolios during short-term volatility times. By hedging one’s position through a CFD, one can mitigate short-term loss if a long-term portfolio enters an area of short-term risk.

If a portfolio decreases in value, revenue from CFD contracts can compensate for incurring losses. Like this traders can keep their portfolio from big value reductions.

CFD benefits

You can take long/short-term positions.

You can trade on product price decreases and increases.

You can benefit from markets going low (by selling) and from markets going up (by buying).

You can enjoy substantially lower margin requirements.

You will also enjoy immediate execution – you will benefit from fast and effective transactions.

Reason to choose FxtPremium for CFD trading.

We have developed three platforms for trading (MetaTrader 5, Mobile trader and Web Trader). You can hence trade easily, on any device.

To ensure success, keep informed about the market, as you need to be able to predict the movement of your CFD and the best strategies to handle it.


With us, you can trade the CFDs listed below
METALS
COMMODITIES
INDICES
Gold (spot)
Crude oil (spot)

S&P 500, Dow Jones 30, USTECH100 (NASDAQ)

Silver (spot)
Brent crude oil (spot)
DAX
Palladium
Natural Gas

CAC 40, EUROPE50 (Eurostoxx), FTSE100

Platinum
JAPAN 225 (NIKKEI)
AUS200
HONGKONG50

CFD Trading: A Comprehensive Analysis

We’ll take you through the varied options for success offered by CFD trading, which includes numerous robust strategies for traders.

What is CFD Trading?

CFD stands for contract for difference. In short, you can trade on the movement of an instrument, not on the instrument itself, gaining funds both when prices increase and decrease, conditional on you having predicted well and bought in line with your prediction.

Go ‘long’ and buy if you think the prices will go up – like this you can profit through the future gain. Go ‘short’ if you think prices will go down – you can then gain profit If your prediction was correct.

CFD trading is unlike other approaches, due to the ‘short’ option. The gains and losses are conditional on the sensibility and accuracy of your predictions, your lot (‘position’) , and the significance in the market movement.

If you are experienced in Forex, CFD trading will not be unfamiliar to you. A number of brokers/platforms also offer the opportunity for leveraged CFD selling/buying. If used in the right way, this approach can bring good revenue.

Where can you trade CFDs?

The markets listed below are suitable for CFD trading:
Forex
Commodities
Shares
ETFs
Indices

CFD trading is done in the same way regardless of platform. Nevertheless, it is still important to get acquainted with the various platforms, which slightly differ among each other.

CFDs Trading – what benefits can you get?

You can profit both when the market goes down and up, due to the option to sell short – this is a chief benefit of this approach, and a reason for its increasing appeal of late.

You can use leverage. This means you can enter a market for only a part of the price of the transaction itself.

There is no fixed lot , and you don’t own the commodity itself. This leads to significantly lower risk and higher convenience.

It is one of the available ways to diversify your portfolio – always a good approach.

Excited? Try out your CFD strategies, begin with FxtPremium today!

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