CFDs

What are CFDs?

A CFD (Contract for Difference) is an agreement made between a buyer and a seller. In it the seller is bound to pay the buyer the difference between the value of an asset at a specific point in time (when the agreement was made) and its current value. CFDs have now a favourite option amongst traders.

MarketsPremium offers you a wide array of CFDs to choose from.

Due to the way a CFD works, many investors have begun to use it as a way to hedge their existing portfolios in times of short-term volatility. With a long-term portfolio you want to keep, a short-term risk to the profit of your investments may occur, you can use CFD contracts to reduce a short-term loss by hedging your position.

If your portfolio’s valued decreases, you can gain from CFD contracts thus helping you to balance out those losses. This will also help you hold on to your portfolio without experiencing any big loss in value.

Advantages of trading CFDs:

  • You can take both long and short-term positions.
  • You can trade both when the price of a product goes down and when it goes up. This is how a CFD is meant to work.
  • You can profit from market movements up and down by buying and selling.
  • Considerably lower margin requirements for CFDs.
  • Quick and effective transaction due to the immediate execution.

Why trade CFDs with MarketsPremium?

MarketsPremium provides three trading platforms which give you easy online trading from all kinds of devices, including the platforms MetaTrader 5, Mobile trader and Web Trader.

To gain profit, always stay up-to-date regarding market news to learn about the movement of the CFD contract that you are trading, and receive CFD trading strategies and tips.

Trade the following CFDs with MarketsPremium

METALS
COMMODITIES
INDICES
Gold (spot)
Crude oil (spot)

S&P 500, Dow Jones 30, USTECH100 (NASDAQ)

Silver (spot)

Brent crude oil (spot)

DAX
Palladium
Natural Gas

CAC 40, EUROPE50 (Eurostoxx), FTSE100

Platinum
-

JAPAN 225 (NIKKEI)

-
-
AUS200
-
-
HONGKONG50

An in-Depth Analysis on CFD Trading

When you choose CFD trading, there is a variety of reliable strategies that you can use. MarketsPremium will help you get the most of trading with CFD's and much more.

What is CFD Trading?

In CFD trading (contract for difference trading) you trade not on the instrument itself, but on the instrument's movement. CFD offers one a unique opportunity – to be able to benefit not only if the price goes up, but also when it goes down, i.e., if you were right in your prediction and bought according to that.

So, if you think that there is going to be a rise in the price of the underlying instrument, you go ‘long’ and buy. In this way you can make a profit on it. If you think that the price will fall, you go ‘short’, and if the price does fall, you will profit from this correct prediction.

CFD trading gives you a different approach to trading, because it lets you sell short. Your gains/ losses will only depend on how well you predicted the movements, your lot (‘position’) and if the market movement actually is of importance.

People with experience find are similarities between CFD trading and the Forex market. A wide variety of trading platforms and brokers also allow leveraged buying and selling for CFDs, which is a CFD strategy that can result in a good profit, if used correctly.

What markets can you trade CFDs on?

You are able to trade CFDs on the following markets:

  • Forex
  • Commodities
  • Shares
  • ETFs
  • Indices

CFD trading generally works the same way on any of the abovementioned platforms. But this does not mean that it can replace getting to know how each and every platform works, because they are all a little bit different.

Advantages of CFDs Trading

Are you eager to try it out? You can test your CFD strategies and start trading CFDs with MarketsPremium today!

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