WHAT ARE CFDS?

What does CFDs stand for? CFD stands for Contract for Difference. This is a contract that is between two parties, usually described as the buyer and seller which stipulates that the buyer will pay the seller the difference between current values of assets and the value at the contracts time.

The advantages of CFDs is that they provide higher leverage than normal trading. However standard leverage is subject to regulation with regards to the CFD market. There are lower margin requirements which means less capital outlay for traders and investors which result in potential returns, but keep in mind that this increased the leverage that can magnify losses.

The benefits include:

High Leverage – Global Market Access from one Platform

No borrowing of stocks and no shorting rules

Professional Execution with no fees

No Day Trading requirements

Variety of Trading Opportunities