What is CFD
A CFD, or Contract for Difference, is an agreement between two parties to exchange the difference between the opening price and closing price of an asset (e.g. shares, currency, indices). CFDs are derivatives products that allow you to trade on live market price movements, without actually owning the underlying instrument on which your contract is based, with profits or losses being realized depending on the position taken (i.e. long or short).
CFD trading principles
Investors should be familiar with the risks associated with trading CFDs before deciding to invest in CFDs.
CFD trading using leverage to enhance investment capacity
Brokers can provide leverage for a variety of CFDs, with a maximum leverage rate of 200: 1. Traders can take long or short positions and as trades are leveraged, traders only need to deposit a margin percentage. CFD trading commissions are low risks.
Reduce transaction risk
With margin trading CFDs, investors need only a small part of the funds to carry out the transaction from the account of the total funds. The platform has an automatic closing function, which limits risk.
Transactions according to the global financial market trends
Traders can use the software to trade or invest in gold, silver and other global commodities based on the overall index trend. Online trading allows for trade 24 hours a day, so that retail investors can trade in markets they could not otherwise invest in.
Easy to do long, short or hedge
Whether the market is rising or falling, traders have the opportunity to profit. Traders can use CFD by trading long or short. If the trader believes the price of an asset will fall, you can use CFDs to short (sell), and then again in the future expect to buy back at a lower price. However, the moving direction of the transaction price may be the opposite, which will result in a loss.
CFDs can be traded varieties
We offer CFDs on a wide range of markets, including foreign exchange, equities, commodities, stock indexes, and other products.
How to operate CFDs
If you believe that the market will rise, you will take a "long" position. If you believe that the market will fall, you will take a "short" position.
The more the market moves in the direction you have picked, the higher your profits. However, if the market moves in the opposite direction, you can set a stop loss. As most of CFD trading has no time limit, you can decide how long the positions you take are.
Are there any Transaction costs?
When opening or closing a position, you will pay a small commission. There can be other charges including interest adjustments on overnight positions, or dividends.
Risk Management Tools
When trading CFDs and other leveraged products, if you judge the opposite direction to the operation of the market, you will suffer loss; therefore we offer a range of risk management tools to help your risk protection.