CFD Dealing
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CFD Dealing information from Easy Forex Forum
CFD Dealing Contract For Difference
When you CFD dealing, you do not physically buy or hold the physical underlying share. You only have indirect access to the price performance.
CFD is a contract between a broker and a trader.
What is an ‘on margin’ CFD?
Making a purchase on margin means that the seller is lending a certain percentage of the money required to the buyer. When purchasing a CFD, the trader will pay for about 10% of the stock he is trading. If the markets move in his favour, he will earn the entire profit and if he loses he will owe the losses of the entire contract
Please ensure you understand the risks as CFD dealing is not a suitable investment tool for everyone. We recommend that you consult an independent financial Advosir
Trade shorter time frames
Because of the leverage available, and the ability to short CFDs, you can profit from smaller moves in the underlying stock prices.
Automatic stop losses
Place automatic stop losses for CFD positions on your CFD trading platforms.
You can place all your orders in the evenings
CFD trading is the instrument that makes it possible for people to trade a profitable system, by trading only in the evenings.
Trade CFD on stock indexes with Finotec. Our advanced trading system allows you to trade CFD’s on stocks and indices as well as options
Stock Index CFD
Stock Index CFDs are OTC (over-the-counter) products for which the price is set your broker to reflect the fair value of the underlying index. One of the reasons for the popularity of Index CFDs is that although they are similar to futures, they are traded in smaller sizes. This difference gives the investor more flexibility.
Example:
Let’s assume that you expect an increase in the USA100 index. You can either:
buy a mutual fund that tracks the USA100. Assuming the index currently stands at 10,000, you decide to invest $20,000. This means that you will earn around $2 per point move.
Or, you can decide to trade a CFD product on the USA100. In that case, you would only invest $1,000 as a margin requirement for a $20,000 position and you would earn $10 per point move.
Start Trading CFDs on Indices with Finotec
Both our Standard and Mini Trading Systems allow you to trade CFD on major indices. You can buy or sell CFDs on 7 major indices including the USA 100, the USA 500 and the UK 100. Simply click "CFD" on the top product menu and select the index you wish to trade. Select the product amount you wish to trade. You may also choose to set a take profit level and a stop loss to limit potential loss. There is no commission fee when you trade CFDs on indices at Finotec.
On our ultramodern trading platform, you can view real time charts of past index price fluctuations. Finotec also places at your disposal a wide range of technical tools for chart analysis, and offers you the option to receive price alerts via SMS, phone or email. You can also read through our experts’ daily and weekly analysis reports to stay updated about the latest stock and index developments.
