CFD TRADING

Learn about CFDs in our Introduction to CFDs.

The contract for differences (CFD) offers European traders and investors an opportunity to profit from price movement without owning the underlying asset. It's a relatively simple security calculated by the asset's movement between trade entry and exit, computing only the price change without consideration of the asset's underlying value.This is accomplished through a contract between client and broker and does not utilize any stock, forex, commodity, or futures exchange. Trading CFDs offers several major advantages that have increased the instruments' enormous popularity in the past decade.

COMMODITIES TRADING

Commodities are an important aspect of most American's daily life. A commodity is a basic good used in commerce that is interchangeable with other goods of the same type. Traditional examples of commodities include grains, gold, beef, oil, and natural gas.For investors, commodities can be an important way to diversify their portfolio beyond traditional securities. Because the prices of commodities tend to move in opposition to stocks, some investors also rely on commodities during periods of market volatility.
 
 

KEY FEATURES FOR TRADING CFDS

CFDS ON INDICES

  • Trading indices with FxLink Corp enables you to trade and invest in the US, UK, European, Asian and Australian market including: 100GBP, 200AUD, D30EUR, NASUSD, SPXUSD, U30USD etc.
  • Indices are adjusted for dividends depending on the cash component of the dividend on individual shares within the index. FxLink Corp clients trading CFDs on Indices benefit from these dividends.
  • With CFDs, the same margin requirements apply regardless of whether you’re selling or buying.
  • Since you can take both short and long positions with CFDs, a bearish market holds the same risks for incurring losses, but it also offers potential opportunities for profit.
  • Trading CFDs on Indices is far less costly than trading the underlying index, but offers the potential to deliver similar gains and losses.
  • While many traders find CFDs appealing, always remember that they carry the same risk as trading any leveraged asset.

CFDS ON COMMODITIES

  • You can trade the following commodities on FxLink Corp platform: XAU/USD, USO/USD, UKO/USD, XAG/USD etc.
  • Whether you go short or go long, the same rules and margin requirements apply when trading CFDs.
  • The margin requirements for CFDs are lower than they are for the underlying asset. Click here for our contract specification details on CFDs.
  • Since you can take both short and long positions with CFDs, a falling market retains the same risks when it comes to incurring losses, but it can also offer potential profit-taking opportunities.
  • While the benefits of trading CFD may be clear, remember that all leveraged assets are subject to high risks and may not suit some people. You could lose more than you invest and can risk making further payments.
[X]