Trading CFDs (CFD)
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Thread: Trading CFDs (CFD)

  1. #1
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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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    So can we invest in bonds if we have to do that through the help of robo forex broker, I have only heard that we can do trade in stocks with robo forex broker, I don' thave much knowledge and trading experience of bonuds and it will be so much helpful for me if you will try to explain more about it moderator sir. I had visited the site of robo forex broker of stock trading but there I have seen only stocks to do trade.

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    thank you very much for bringing to our notice the opportunity to trade the CDF and the various advantages you have have mentioned it carry, but i have made up my mind to stay with the forex and the metal with cruse oil for now, i have these three instruments in my hand for now because i do not want to have too many of these financial instruments in my hand so i will be able to maintain my balance and conrntradion

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    Quote Originally Posted by Dheeraj890 View Post
    So can we invest in bonds if we have to do that through the help of robo forex broker, I have only heard that we can do trade in stocks with robo forex broker, I don' thave much knowledge and trading experience of bonuds and it will be so much helpful for me if you will try to explain more about it moderator sir. I had visited the site of robo forex broker of stock trading but there I have seen only stocks to do trade.
    Well yes sir you can do trade with stocks and robo forex broker provide us a facility to do trade with U.S stocks, but I am from India and its hard for me to do trade with stocks right now because when the marekt open in U.S stocks that time in my country there is a sleep time so I am doing trading more with the forex currency pairs right now. The london and New york session suit to my trading timing.

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    Yes I have also heard that now we can do trade with U.S stocks in robo forex broker, but I would request them to give us an opportunity to do trade with Indian stocks, I am from India and I love to do tarde with indian stocks, I have some money invested with Indian Brokers, but if robo forex broker would provide me an opportunity to do trade with Indian stock market then I will like to transfer my current broker fund to robo forex broker. I am enjoying forex trading with robo forex broker at the moment and love their services very much.

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  6. #6
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    trading with CFDs is good for the traders that know how to use it properly and it is profitable too like currencies, but i prefer to trade with currencies and metals like gold because it is more profitable for me and also because it is more suitable for my trading strategy and more enjoyable.

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    I do not know much about the CDF but when I was making an account on Robo Forex so that time I saw this CDF like abbreviation but I have no concept about this that what are CDF and how effectively we can know and trade in these. But I am sure this is something kind related to Forex business.

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  8. #8
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    Quote Originally Posted by adeelyaz View Post
    I do not know much about the CDF but when I was making an account on Robo Forex so that time I saw this CDF like abbreviation but I have no concept about this that what are CDF and how effectively we can know and trade in these. But I am sure this is something kind related to Forex business.
    CFD trading is the same as stock trading. You can pick proper pairs and choose them to be traded but the lot calculation will be unique. As far as i can see, CFD will got a lot of difference with forex trading. I worked in a forex company long before this so i know about this thing and i know how a trader will trade with CFD trading too naturally.

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    [lang=ar]trading with CFDs is just like trading any other thing you should know how to trade it let say that we are not talking about oil . the way to predict its price is the right analysis of the fundamentals and take advantage of the key events happening in the world and off course there is the technical analysis , any chart will respect the strong levels[/lang]

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  10. #10
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    Thanks for careful explanation on CFD but if I must say , a beginner trader should first look away from this and makes sure that he gets his bearing right in the area of currency pairs first . I have my reason for this , I have traded CFD ignorantly not knowing that it has a closing and opening time unlike the currency pairs that opens non stop from Sunday midnight to Sunday night.I though the broker was playing me a foul when I saw that my trade was on a stand still at a particular time. I will advise people to trade currency pairs successfully before going into CFD

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