CFD (Contract for Difference) is a contract between two parties known as "buyer" and "seller" to exchange the difference between opening and closing prices of the contract. The popularity of the instrument mainly stems of a simple fact that investors do not have to obtain the physical assets for trading them. Observations have proven that significant number of traders prefer CFD trading over other financial instruments.
Benefits of CFD Trading
- No ownership of the actual underlying asset
- Leveraged Trading
- Fast access to a variety of markets
- Low transaction costs and No hidden commissions
- Profit from both rising and falling markets
- Ability to trade through online trading platforms on various devices
CFD Trading Instruments
Learn more about CFD Trading
CFD or Contract for difference is an agreement between two parties, buyer and seller. The value of the contract is based on the underlying asset (for example, index, stock or commodity futures). Upon the contract expiration or when the parties make a decision to close the position, the seller pays the buyer the difference between the current value of the asset and its opening value, if the value of the underlying asset has increased. And, vice versa, if the value of the underlying asset has decreased, and the difference between the current and initial value of the contract is negative - the buyer pays it to the seller.
CFD (Contract for Difference) is a contract between two parties known as "buyer" and "seller", the price of which is based on the base asset, for example an index, stock or commodity future.
Today the CFD market has developed a lot since the first CFDs and offers huge variety of underlying financial instruments ranging from stocks, equity indices and currencies to commodities, bonds and derivatives.
CFDs allow to trade the price movements of global markets and hedge physical portfolios against potential loss of value.
Recently, along with trading in the foreign exchange market, a growing number of clients are interested in making profits by trading Index, Commodity and Stock CFDs. IFC Markets, being one of the leading providers of CFD trading, has developed a special instrument (CFD type), having the form of continuous futures contract that allows clients to trade without an expiration date. This is a significant advantage compared to trading futures with dates of expiration.
A single trading account is a set of brokerage services that allow a client to trade on multiple segments of the financial market using only one single account.
In contrast to traditional gold trading, quoted against the US dollar or the euro, this group includes the following unique instruments, in which gold is quoted against other assets: