What are CFDs?
A contract for differences (CFD) is an agreement between an investor and a CFD broker to exchange the difference in the value of a financial product between the time the contract opens and closes. CFDs allow traders and investors an opportunity to profit from price movement without actually owning the underlying assets. The value of a CFD contract does not consider the asset's underlying value: only the price change between the trade entry and exit. By not owning the underlying asset, CFD traders can avoid some of the disadvantages and costs of traditional trading.
What to Trade with CFDs?
CFD traders can choose to trade different instruments – CFDs on shares, indices, commodities and enjoy several advantages over trading these instruments directly.
What is the Advantage of trading CFDs?
There are many advantages of trading CFDs, and the main advantage is that traders don’t have to own the assets, which gives them flexibility. Also, this is leveraged product, which means that traders only need to deposit a small percentage of the full value of the trade in order to open a position. This is called ‘trading on margin’ (or margin requirement). Although this option allows traders to earn huge amounts of money by investing only a small deposit, this can enlarge losses because trades on margin are based on the full value of the position. With Finveo, you have an opportunity to trade CFDs with 100:1 leverage.
Why trade CFDs with Finveo?
- Customer Services: All customers have access to 24/5 localised 1-on-1 customer support, plus tools and educational materials.
- Tight Spreads: Finveo offers highly competitive spreads on index.
- Effective Indices Risk Management: Employ risk management tools, such as stop loss and limit orders to safeguard your potential when trading indices.
- Low Commissions: Tight, competitive spreads – meaning you pay less to open a position.