If you're looking for an easy to understand trading instrument, contracts for difference (CFDs) could be for you.
They're very transparent due to the way their pricing and contract sizes work. And you may be able to trade them with your current stock broker.
So what exactly are CFDs? And how do they work?
Let's take a closer look…
What are CFDs?
A CFD is an agreement you enter ... ››› more
If you want to trade CFDs, it's important you understand exactly how a trade works.
What happens with your open CFD trades depends on whether you go long or short and what the underlying share price does.
Let's take a closer look…
The workings of a CFD trade depend on whether you go long or short
Whether you go long or short in a CFD trade, you need to pay your stock broker a comm... ››› more
If you're looking for a cost effective way of trading stocks, contracts for difference (CFDs) are worth a look at.
You trade the spot price. This means you enter and exit a trade at the price of the underlying share.
But, as with all forms of trading, there are costs to consider.
So what can you expect to pay? And does the amount you trade make a difference?
Read on to find out…
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CFDs (contracts for difference) are trading instruments that you can use to trade assets like shares, indices and currencies.
You can also use trading instruments like single stock futures and spreads to trade shares and indices.
So what makes CFDs different?
Let's take a look…
CFDs have no expiry date
CFDs have no expiry date.
This is unlike single stock futures and spread ... ››› more
CFDs (contracts for difference) are a financial derivative that you can use to trade underlying assets such as shares and currencies.
So how do CFDs work when you trade them?
How can you make money?
How does the daily funding charge work?
And what if a company you're trading CFDs in pays a dividend?
Let's take a closer look…
The difference going long or going short CFDs m... ››› more
CFDs, or contracts for difference, are a type of trading instrument. You can trade a wide array of underlying assets, including shares and currencies.
So how do contracts for difference work?
Let's take a closer look…
You trade on margin with CFDs
Like with other financial derivatives, you trade on margin with CFDs. This means you put down a small portion of your overall exposure ... ››› more
If you invest on the stock market, the allure of trading may be tempting you.
By choosing to trade, you have a number of ways to do it.
So what are these different ways to trade?
Read on to find out…
There are three main ways to trade the stock market
There are a number of different financial instruments you can use to trade the stock market.
The most popular forms of tradin... ››› more
When you opt to trade contracts for difference (CFDs), there's a daily funding charge. This differs depending on whether you go long (buy) or you go short (sell) CFDs.
So how does the funding actually work in practise?
Let's take a closer look…
How funding works with a long CFD trade
When you go long (buy), you have to pay a daily funding charge when you trade CFDs.
Let’s hav... ››› more
When it comes to trading, you have a number of different financial products at your disposal. Two of these products are contracts for difference (CFDs) and spread trading. So what's the difference between the two products? And is one better than the other? Let's take a closer look…
CFDs and spread trading are similar products
If you want to trade using leverage or short shares, you look to t... ››› more
One advantage of trading CFDs is the gearing effect of trading on margin. This allows you to multiply your gains. Read on to discover how you can make great profits by buying CFDs…
A contract for difference (CFD) is what’s known as an over the counter (OTC) derivative because you don’t trade it through an exchange (like a share), but through a bank or company who provide CFD trading.
Wh... ››› more