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CFDs
What is margin?
Submitted by admin on Tue, 08/19/2008 - 14:36.CFD products are usually traded on margin.
Margin is an efficient way to use your capital as instead of paying the full value of your position you are only required to pay a percentage deposit. the level depends on the instrument you are trading, and the trading platform and ranges from 1% - 10% of your total position value.
However, losses will also be magnified so margin trading is not necessarily for everyone. So you really need to work out some exampls of what happens to your trades, and how a small move impacts your pl.
What is "spread" or "a spread"?
Submitted by admin on Tue, 08/19/2008 - 14:33.When you view the price of an instrument you will see a sell price and a buy price.
Usually, the price to the left is the 'sell price' (bid) and the price to the right is the 'buy price' (offer). The difference between these two prices is the spread so in this example the spread is 0.25.
Introduction to CFDs
Submitted by admin on Tue, 08/19/2008 - 14:12.An introduction to CFDs. ( Contracts for Difference), and CFD Trading.
What are Contracts for Difference? (CFDs)
Submitted by admin on Tue, 08/19/2008 - 14:11.CFDs can be a flexible and cost effective way to trade a wide range of financial markets.
The contract mirrors the performance of the underlying instrument, offering all the benefits of trading the underlying instrument without having to physically own them. With CFDs you can buy if you think the price of a financial instrument will rise and you can sell if you think the price will drop, therefore it is also possible to profit from a fall in the price of the underlying instrument
CFDS Trading
CFDs Trading at CFDsTrading.org
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