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Confused by gearing and trading on margin with CFDs? Here's everything you need to know…

by , 22 June 2015

When you decide to trade a derivative instrument like contracts for difference (CFDs), you need to get to grips with gearing and trading on margin.

It's these aspects that give CFDs their money multiplier effect, which boosts your potential profits (and losses). And it's vital you understand how they work before you start trading.

Read on to uncover what you need to know about gearing and trading on margin…


The benefits of trading CFDs


Trading CFDs gives you the chance to make ample profits from the small price movements of shares.

But that’s not the only benefit of trading CFDs.

You don’t have to commit a lot of your capital into trades to gain exposure to a large number of shares. And the costs and fees are much less than investing in shares outright.

The money multiplier effect at work with CFDs is down to trading on margin and gearing.


What you need to know about gearing and trading on margin


Click on the links below to discover what you need to know about gearing and trading on margin…

How trading on margin works when you trade CFDs
How to work out the gearing of a CFD trade
How gearing impacts your losses
The risks of trading on margin when you trade CFDs

If you want to know more about trading CFDs, check out our essential report here.

And don’t forget, if you have any questions about trading CFDs, ask our team of experts here.








Confused by gearing and trading on margin with CFDs? Here's everything you need to know…
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