The Benefits of CFD Trading

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THE BENEFITS OF CFD TRADING
About CFD Trading Contract for Difference or as
it is shortly known as CFD is the contract that
is signed between two parties, namely the buyer
and seller. Its price is strongly connected to
the underlying asset like an equity index, a
single stock and commodity futures. Being
firstly traded in early 1990 on the stocks of
London Stock Exchange CFDs were obtainable only
to the institutional traders. They used them to
hedge their exposure on the underlying asset.
However, already at the end of 1990s CFDs became
widely accepted by retail traders and they go on
to attract numerous traders up till now. A lot
of advantages such as leveraged positions, low
costs and time saving benefits have contributed
highly to the development of CFD market. The
latter provides a great number of financial tools
including stocks, commodities, derivatives,
equity indices and currencies to bonds.
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While deciding to close the position the parties
take into account if the asset price has
increased, the seller is going to pay the buyer
the difference between the initial value of asset
and its current value. Otherwise, i.e. in case of
the decrease in asset value its the buyer who
pays. CFD is a unique opportunity for traders
to get experience on various assets. They can
take long position when the price moves up, and
short position when the price goes down.
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WHY TRADE CFDS?

• CFD trading is actually more beneficial than
  trading the given asset directly.
• It is featured with the following benefits
• Highly liquid assets and quick access to a
  number of markets through one brokerage account
• Possibility of opening leveraged positions
  through margin which helps to enhance the
  profits
• Cost reduction because of the lack of taxes and
  hidden commissions
• Unlimited opportunities of taking long or short
  side trading
• Possibility to trade easily from diverse parts
  of the world
• Availability of 80 and more commodities, CFDs on
  stocks and major Equity Indices
• Accessibility of unique Golden Instruments
• Unique swap terms
• Continuous trading of Index CFDs after the
  closure of stock exchange.

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WHY TRADE WITH IFC MARKETS ?

• IFC Markets offers beneficial conditions for
  CFD trading
• Trade More 80 trading Instruments - Stock CFDs,
  Index CFDs and Commodity CFDs.
• Unique swap/rollover policy - based on
  free-borrowing concept of non-currency assets  
• Unique ability of trading Index CFDs - even
  after the stock exchange closes
• Unique ability of trading continuous Commodity
  CFDs - without the need to follow expiration
  dates

Leverage 140 100 Dividends Payout 0,1 Charge on Stock CFDs
One of the advantages of trading CFDs with IFC
Markets is that it offers two CFD trading
platforms MetaTrader 4 and NetTradeX.
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How to trade CFDs?
On the trading platform NetTradeX its possible
to find Commodities, Stock Indices and CFDs on
Equities including one hundred trading tools. The
whole concept and procedure of CFD trading is
quite simple and has much in common with
traditional currency trading. The trader buys
CFDs expecting an increase in price value of the
underlying asset or similarly sells them
anticipating a decrease in the price of the
underlying asset. This is the main factor of CFD
trading as due it traders can make a profit
depending on the market movement up and down.
The next essential feature of CFD trading is
that it is traded on a margin basis. In other
words a trader has a chance to open a position by
depositing a very small portion of the total
contracts value based on the type of account and
on the contracts margin requirements. However,
together with the increase of profit the probably
of losses also rises. Hence traders should keep
funds to accomplish any undesirable move against
their position and maintain margin requirements
to keep the position open.