Simple CFD


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Contracts for Difference (CFDs) are a form of derivatives trading that allow you to earn potential net profits by predicting the rise and fall of prices in rapidly moving global financial markets (or products) such as stocks, stock indices, foreign exchan

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Беларусь, Казахский
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Key Takeaways
A Contract for Difference (CFD) is an agreement between an investor and a CFD broker to exchange the difference in the value of a financial instrument between the opening and closing of a contract.
CFD investors do not actually own the underlying asset, but instead receive a return based on the price changes of that asset.
Some of the advantages of CFDs include the ability to acquire the underlying asset at a lower cost than buying it outright, ease of execution, and the ability to go long or short.
One disadvantage of CFDs is that an investor’s initial position is immediately reduced, i.e., upon entering a CFD, the position is reduced by the size of the spread.
Other CFD risks include weak industry regulation, potential lack of liquidity, and the need to maintain adequate margin.


What are the potential benefits of CFD trading?

In both the buy and sell scenarios, you do not actually own the underlying asset. This means that you can diversify your portfolio without actually owning the asset. In other words, traders can benefit from rising or falling price fluctuations without directly owning the asset.
Go Short: You can also go short. Opening a sell position is just as easy as opening a buy position.
Low minimum deposit requirements - you only need a relatively small amount of money to start trading CFDs on financial instruments such as stocks, forex, commodities, etc.
No storage costs: Some CFDs, such as commodity CFDs, are different from other types of commodity contracts. In CFD trading, you do not actually own the underlying asset such as gold or oil (note that other fees such as overnight fees may apply depending on the CFD broker), so there are no storage costs to pay.

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