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Understanding CFD Trading - The Risks & Rewards 4 года назад


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Understanding CFD Trading - The Risks & Rewards

CFD trading is very similar to shares trading except that when you trade a contract for the difference you don’t own the underlying share. Unlike investing in stocks, when you trade CFDs, you are not buying or trading the underlying asset. What you are buying is a contract between yourself and the CFD provider. The key difference between trading a CFD long and buying security is due to the leverage that is employed. Contracts for differences are traded on margin which means that there is no need to tie up the full market value of purchasing the equivalent stock position. This also allows traders to open larger positions than their capital would otherwise allow. Please visit at ‪@InvestorsTradingAcademy‬

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