What are CFDs?
A contract for difference – commonly known as a CFD, is a financial instrument that radically simplifies the traditional investment process. CFDs allow you to invest on the performance of a global asset without purchasing the asset itself. CFDs are fast, convenient and easy to trade.
A CFD trade on any asset aims to profit from changes to the asset’s market value. Your profits are calculated according to the difference between the asset price when your trade is opened, and its price when you close the trade.
10CFDs traders can boost their investments on individual assets by up to x200 using leverage. The use of leverage allows you to increase your market exposure and potentially earn higher profits with a smaller initial investment. One of the big attractions of CFDs is their simplicity.
You can open a CFD trade on an underlying asset either as a Buy or a Sell position.
An Example of a CFD Trade
10CFDs offers 5 main classes of assets as CFDs: Forex, Stocks, Commodities, Indices and Cryptocurrencies. The basic trading principles are the same for all assets.
A Typical CFD Trade
You buy USD 250 with Euros. Ten days later you change the Euros back to dollars – and make a profit of $75.
How is this possible?
When you bought USD 250 on Day 1 the market price for the dollar was 0.9 EUR. By Day 10 of the trade the market price had risen to 1.2 EUR. The 0.3 price increase yielded a profit of $75. During the trade you simply utilized the age old practice of buying an item cheaply and selling it at a profit. If you had used leverage to increase the size of your initial dollar purchase, your profits would have incresed in proportion to the amount of leverage used.
The principle of leverage is very simple:
$250 x 100 leverage = $25,000
$25,000 x 0.3 price movement = $7,500 profit.
If your prediction about the preformance of an asset was correct, you may make an immediate profit (including leverage). A major advantage of CFDs is that you can immediately close a losing trade. Any financial losses will be limited to that particular trade and you can’t incur any additional losses or liabilities. CFDs guarantee full transparency and give you a very high level of control over your investments.
The Main Advantage of Trading CFDs
10CFDs has created a dynamic trading platform that suits the pace of modern life. Our low cost investment model allows you free access to the world’s busiest markets with competitive fixed spreads. We’ve eliminated all the unfair fees, commissions and hidden charges that traditional brokerages use to exploit their clients. 10CFDs delivers a fast, secure and fully transparent investment service that puts you in complete control of your finances.
Traders at 10CFDs have instant access to up to x200 leverage. The only condition is that you maintain a sufficient margin reserve in your trading account to cover your leveraged trades. Leverage allows you to multiply the volume of any trade and potentially increase your profits by the same proportion. When you trade at 10CFDs you can open leveraged trades on over 1,000 financial assets such as forex, stocks, commodities and indices.
Benefits of CFDs
CFDs are increasingly becoming the first choice of investment for modern traders. They allow you complete independence and the ability to build a personal portfolio that suits your budget and financial goals.
Cost Effective Online Investing10CFDs is a streamlined online brokerage that operates with a high tech infrastructure and minimal overheads. Put simply, the cost of doing business is considerably cheaper for us than for an old fashioned broker. We pass these savings onto our clients and offer a highly competitive trading package. All trading is commission free, with low fixed spreads and no hidden fees or charges.
Freedom and FlexibilityThe 10CFDs trading platform allows sophisticated investments within a simple structure. You can manage multiple trades simultaneously, perform real time analysis and rapidly exploit changing market conditions. As a CFD trader you can potentially profit from both bullish and bearish market conditions. Your trading is backed up by transparent account management combined with dynamic trading tools, risk management and entry orders.
Leveraged TradingAll 10CFDs traders can access up to x200 leverage. As long as you maintain an adequate margin reserve in your account, you can multiply the value of any investment with a single click – and potentially increase you profits proportionally.
One-Click Order ExecutionOne-click execution gives you the ability to rapidly respond to a changing market environment. Sudden opportunities can be exploited with our one-click trading tool, allowing you to open and close positions instantaneously.
Can I Trade CFDs?
Millions of people worldwide have traded CFDs. If you’re willing to learn the basic rules of risk management, and take the time to develop effective trading strategies, you can also trade CFDs. The exclusive 10CFDs Education Center brings you top quality learning resources, specifically geared towards effective CFD trading.
Several veteran investors at 10CFDs signed up as newcomers with no financial experience. They used the Education Center and their free Demo Account to master the basics of the financial markets, before progressing to full-time professional level trading. There is no typical CFD trader and 10CFDs investors range from part time amateurs to expert investors who manage multi-asset portfolios and trade full time. 10CFDs gives you the freedom and the infrastructure to trade on your own terms and manage your own investments.
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