Trading CFDs with Forex Broker
Contracts for Difference, better known in market terminology as CFDs are contractual agreements between two parties in order to exchange the difference between the opening and closing price of a contract, allowing the price movement of the index or commodity specified to be speculated on. Popularity in CFDs took hold in the 1990s in London, as a type of equity swap which could be leveraged, and traded on margin.
Both asset managers and institutional traders began to use them as a cost effective hedge against stock market exposure in their portfolios. Because there are no actual shares that need to be purchased, CFDs have been made popular in recent years by online investors seeking to create healthier portfolios.
With Forex Broker clients are able to trade popular commodities such as Gold, Silver, & Oil. As well as Indices such as NASDAQ, FTSE, DAX, and a many other popular stocks, without compromising on trading conditions.
Advantages of Trading CFDs with Forex Broker
- Tight competitive spreads in both fixed and variable-ECN trading
- Ability to short sell in market downturns
- Trade CFDs anytime through Multiple Platforms (Web, Desktop, Mobile, Tablet).
- Cost Effective-Trade on Margin with 1:100 for only 1% of the transaction value.