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.
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.