XM CFD Trading explained, All you need to know about XM CFD Oil Trading like what is XM.com CFD Trading platform or how much is XM CFDs Trading minimum deposit.... more" />

XM CFD Trading

XM CFD Trading explained, All you need to know about XM CFD Oil Trading like what is XM.com CFD Trading platform or how much is XM CFDs Trading minimum deposit.

XM CFD Trading

CFD trading is the buying & selling of contracts for difference (CFDs), a way of trading on the financial markets that doesn’t require the ownership of any assets.

A contract for difference (CFD) is a popular form of derivative trading. CFD trading enables you to speculate on the rising or falling prices of fast-moving global financial markets, such as forex, indices, commodities, shares and treasuries.

CFD trading explained

Some of the benefits of CFD trading are that you can trade on margin, and you can go short (sell) if you think prices will go down or go long (buy) if you think prices will rise. CFDs are tax efficient in the UK, meaning there is no stamp duty to pay*. You can also use CFD trades to hedge an existing physical portfolio.

Introduction to CFD trading: how does CFD trading work?

With CFD trading, you don’t buy or sell the underlying asset (for example a physical share, currency pair or commodity). You buy or sell a number of units for a particular financial instrument, depending on whether you think prices will go up or down. We offer CFDs on a wide range of global markets, covering currency pairs, stock indices, commodities, shares and treasuries. An example of one of our most popular stock indices is the UK 100, which aggregates the price movements of all the stocks listed on the UK’s FTSE 100 index.

For every point the price of the instrument moves in your favour, you gain multiples of the number of CFD units you have bought or sold. For every point the price moves against you, you will make a loss. Please remember that losses can exceed your deposits.

Comments are closed.