Trading CFDs

What are CFDs?

A CFD (Contract for Difference) is an agreement between the buyer and the seller, binding the seller to pay the buyer the difference between the value of an asset at the time of the agreement, and the value of said asset at the present time. CFDs have become very popular amongst traders.

DeltaFXMarkets has a wide choice of CFDs for you.

Due to the nature of CFDs, many investors choose them as hedging tools for their existing portfolios through periods of short-term volatility. If you have a long-term portfolio you want to keep, , you can reduce the risk of short-term loss by use CFD contracts to hedge your position.

If your portfolio decreases in value, any profit you gain from CFDs could help you recover your losses, thereby helping you hold on to your portfolio without provoking any big loss in value.

Advantages of trading CFDs:
The option to choose both long and short-term positions.
You can trade on the price of a product increasing or decreasing.

You can profit from a bearish market by selling and likewise from a bullish market by buying.

Margin requirements for CFDs are significantly lower.
Instant execution guarantees quick and effective transactions.
Why trade CFDs with DeltaFXMarkets?

DeltaFXMarkets provides three trading platforms which help you trade online easily, from every device, including MetaTrader 5, Mobile trader and Web Trader.

For the most profit, you should always keep abreast with the latest market news in order to get a feel for the movement you your CFD, as well as to learn strategies and advice on CFD trading.

Trade the following CFDs with DeltaFXMarkets
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
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JAPAN 225 (NIKKEI)
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AUS200
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HONGKONG50

CFD Trading: an in-depth guide

When trading CFD’s, there are various strategies to choose from. DeltaFXMarkets will explain the many benefits CFD's had to offer and much more.

What is CFD Trading?

With contract for difference trading, shortened to CFD, you don’t trade the instrument itself, but rather the price movement. The unique benefit of CFDs is that you can win when the price goes up, as well as when it goes down, as long as you predicted correctly and bought accordingly.

If you think that the price of the underlying instrument will increase, you go ‘long’ and buy. This allows you to make a profit on the coming gain. If you think the price will decrease, you go ‘short’, and when the price falls, you will still profit from the correct prediction.

CFD trading gives you a different approach to trading, because you have the opportunity to sell short. The gains or losses depend on the accuracy of your predictions, the of your lot (‘position’) and how the actual significance of the market movement.

CFD trading and Forex trading have a lot in common, if you are familiar with them. Many brokers and trading platforms allow leveraged buying and selling for CFDs, a trading strategy than can be very profitable is used wisely.

Where can you trade CFDs?

You can trade CFDs on the following markets:

Forex
Commodities
Shares
ETFs
Indices

As a whole CFD trading is quite similar on all these platforms. However, it would be beneficial to get familiar with each of them, because they do have their differences.

Benefits of CFDs Trading

One of the reasons for the popularity of CFD trading is that you can win even if the market goes down. You can sell short and still make a profit.

CFD trading also allows you to use leverage, i.e. entering the market for only a fraction of the cost of the actual transaction.

The convenience and the lack of a fixed lot are another reasons why many traders to choose CFD trading. Not owning the asset itself is a huge reduction in risk.

As with most financial strategies, CFD trading offers a good opportunity to diversify your portfolio

If you are interested, try out your CFD strategies and start trading CFDs with DeltaFXMarkets today!