Name

TradeCFDs

Description

It is not surprising that CFDs (contracts for differences) have surged in popularity over the last decade. Previously, almost reserve of major institutions, advances in technology have opened these trading products to private traders and investors.

Key advantages include the leverage, transparency and the fact that these trading products can be traded in both directions meaning you can also take advantage of falling markets. Added to this is the vast range of markets covered including equities, currencies, commodities, bonds and stock indices.

CFDs simply mimic the movements of an underlying financial instruments - so if the price of Facebook stock rise from $38 to $40, the CFD will follow suit. If you want to take a trade using CFDs equivalent to owning, for instance, 500 shares in Facebook stock, then you buy 500 CFDs.

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