CFD (Contract For Differences) is a tradable instrument that mirrors the movements of the asset underlying it. It allows for gains or losses to be realized when the moves in relation to the position taken. Trading CFDs has several properties:
- Higher Leverage: CFDs provide much higher leverage than traditional trading. Lower margin requirements mean less capital outlay for the traders and greater potential returns. However, increased leverage can also magnify losses.
- Global Market: We offer products in all the world’s major markets. This means traders can easily trade any market while that market is open.
- No scalping rules or Borrowing stocks: Certain markets have rules that prohibit scalping or require the trader to borrow the instrument before scalping or have different margin requirements. With CFD trading traders can carry out scalping methods without extra costs.
- Professional Execution: CFD trading include order types as traditional brokers such as stops loss, take gains.
- No Fees: To buy a trader pay the ask price and to sell bid price. No fees or commissions are charged for trading a CFD.
- No Day Trading Requirements. Certain markets require minimum amounts of capital to day trade, or place limits on the amount of day. The CFD market is not bound by these restrictions.
- Variety of Trading Assets. There are stock, index, currency and commodity CFDs.
Trade stocks on the world’s leading markets. With Stock CFDs, it’s possible to go scalping in a falling market, and since CFDs are traded on margin, you’re able to generate potential payouts from even small market movements.
You can also trade FX as CFDs: all costs are built into the spread, there are no commissions. As CFDs to trade on margin and gain the ability to short sell it if you believe that price will fall.
It’s just as simple to trade commodities as any other CFD. Select from the most liquid commodity markets within energy, agriculture, metals and emissions and get direct exposure to the underlying commodity with all the CFD benefits. No commission or trading fees, either. And with MobOption, you’re not constrained by pre-defined lot sizes.
A few modifications were made in our CFD and FX in order to fit European regulatory requirements:
- The contract is now based on asset currency, meaning when a position is opened it is based on the asset pair and not on the account currency.
- Bid/Ask are built-in the prices.
Advantages to CFD trading include lower margin requirements, easy access to global markets, no scalping or day trading rules no fees. However, high leverage magnifies losses when they occur. CFDs provide an excellent alternative for traders and these have increased the popularity of the instruments over the last years.