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Thread: Trading CFDs (CFD)

  1. #1
    Super Moderator Gulfstream's Avatar
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    Trading CFDs (CFD)

    In addition to currency and metals trading,dealing centers offer us an interesting opportunity - trade in contracts fordifference (CFD) (Contract for Difference).
    What is CFD, CFD trading advantages anddisadvantages, the most popular CFD - the main issues of the topic.

    The topic will often be referred to the words"basic asset" and "derivative", so the meaning of theseconcepts:

    Basic Asset - having a valuation of an asset, which is supplied under the contractor the value of which is the basis for calculating the performance of thecontract.
    (For example, take the currency pair EURUSD:.Base - the euro price of the dollar Euro - the base currency, the dollar - thequote currency.)

    Derivative financial instrument (derivative) -agreement (contract) for the realization of the rights of its sides (orexecution of obligations) relating to the price of the basic asset, which is thebasis of the instrument, and lead to a positive or negative result for each ofthe parties.
    (For example, futures contract EURUSD: we donot buy Euro for dollars,sowe do not have Euro as cash, but if we bought futures onthe Euro, then after a while we get the financial result due to changes inthe value of the basic asset (in this case, the Euro will be BA) will grow -. you will have profit. At the same time we do not buy the European currency itself.

    CFD - it is also a instrument that allows youto get profit from changes in the price of the basic asset.
    Contract for Difference (CFD) - the contractbetween us and the broker on the price of the basic asset.

    The purpose CFD conclusion - getting thedifference between the contract price at the opening position and the price ofthe contract at the closing position. CFD price is linked to the price of thebasic asset, but the physical delivery of the basic asset does notoccur.

    Interestingly, the number of CFD is not linked to theamount of the basic asset, and CFD on shares of any issuer may be many times bigger than thenumber of shares of the issuer in circulation. Basically, CFD - this is abet on the price of an asset between the client and the broker.
    As the basic asset can actstocks, stock indices, bonds, currencies.
    In this theme we consider CFD on stocks andstock indices.

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  2. #11
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    Nice article for understand of CFD's trading from its invention it is very easy to make work and get instinct profit from market ,and one of old trader sharing his experience when there is no online market they work manually so it was very tough to get advantages.

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  3. #12
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    yes, its really good for traders because if we work with CFDs then we earn good. When we work on cfd we make trading and if we compete this contest then we win some balance and work on this without fear and make good profit from this business. So CFD is best for any trader.

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  4. #13
    Trader layigold's Avatar
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    So many things have been said about contract for difference (CFD) and it is not beautiful definition or explanation that will give you success in trading it . I have discovered that all those equities listed on contract for difference have the opening time and closing time each day unlike currency pairs and there is need to review the earning reports of those companies whose equity you want to trade and this means that you must have access to the fundamentals of those stocks if you are to trade them successfully . I prefer to stay on currency pairs, metals and crude oil for now but later at my convenience , I will go and do serious study and observation on it

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  5. #14
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    trading of CFDs is good and profitable and many traders trade with it and make good money with it, but i think trading with them is not suitable for the small traders that have small capital and needs big capital to be able to trade with them and make money, so i prefer to trade currencies as it is more suitable for me and profitable.

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  6. #15
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    This is very true about the forex market, and the most important thing is that, traders should stick to the strategy after gotten one, this helps so well.In forex trading, you should know that you are responsible for it, if you have tested it and see it is not working, the change it again.

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  7. #16
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    In the Forex market there are many currencies that can be relied upon for profit. So we should not associate ourselves with a fixed number of currencies or oil. Because the lack of opportunities available to them can make us bored with the lack of opportunities that can be exploited to reach profit

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  8. #17
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    trading with CFD is profitable like currencies and the trader can make good money with it, i did not try to trade with it before but the traders that trade with them are happy and make good profits, the trader can test it before using it and see if it will work well with him or not and it is suitable for his trading style or not and give good profits or not.

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  9. #18
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    One thing that I don't like about contract for difference is their movements in the charts, there is too much gaps and that happens because most forex brokers don't leave their servers open for these instruments 24/5, most of them have restricted access to when traders can execute any position. Otherwise they can be pretty profitable and easy to analyse.

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  10. #19
    Trader musiliu's Avatar
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    The major advantage that CFD has over the real underlying asset is the leverage available for CFD trading and also because you can use less that 1 lot size. CFD trading starts with 0.01 lot size, if you have a good broker like Roboforex, you will be able to achieve success from CFD trading because of the transparent.

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  11. #20
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    Look friend the success in trading can be gained in any type of sectore but a very good knowledge, experience and practice would required to acquire good trading result even if you don't have a proper preparation and understand the CFD can be also painful, but this is also a good option of trading for them who are doing trading as a successful trader in forex.

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