January 6 2018

What are CFDs?

CFD (Contracts for diffrences) is a stock market where an agreement was made that market participants buy and sell shares that are not physically owned and will not belong to them. In other words, they play on the difference between buying and selling virtual shares, while earning real money.

Many people try to buy shares of this or that enterprise now. This procedure lasts long enough due to the fact that you must first buy, and then also re-arrange the shares from one owner to another. Depending on where you buy shares, this procedure takes from 2 days or more.

For traders who earn not from owning a commodity, but from a difference in the cost of buying and selling it, this process is extremely inconvenient.

Over a period of several days, the stock price can change significantly. Therefore, the so-called CFD market was created.

Strangely enough, but the birthplace of the CFD is not the United States, but the United Kingdom. It was there that the CFD tool was born, which then spread all over the world. Perhaps this was due to the fact that in the US there are laws that prohibit the provision of large margin loans for trading on the stock market.

One of the advantages of CFD, however, like FOREX, is that to enter the market, a trader needs a small initial capital.

This became possible due to the peculiarities of margin trading.

But, unlike the work on FOREX, trading on CFD is tied to stock exchange sessions and focuses on quotes that are put on really changing shareholders of their shares.

CFDs serve to profit or avoid losses when the price of the main element moves, where the main element is not bought or sold.

CFD allows you to conduct deposit trading on any price movement. Usually, the current CFD price will track the base price, allowing traders to speculate on the direction of the indices, liabilities (bonds) or any other products, without having the full ownership of the main contract.

CFDs, proposed by E-Global Trade & Finance Group, Inc., represent, like, stock indices, and fixed income derivatives.



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E-Global Trade & Finance Group, Inc. Movement of prices can often be unusually large. By placing a stop, you can limit your losses in advance. In E-Global, guaranteed stops are FREE.

Trading 24 Hours a Day: Some CFDs are open for trading almost 24 hours a day, allowing you to take advantage of ANY event, at ANY time.

Flexibility: The ability to open indefinitely long and short positions. Without restriction on short sale (as in actions for example), participants have the opportunity to open a position in any economic situation, during the period of increasing the stock market, in a market with falling prices or in sideways motion. Merchants can also open positions in the same CFD against a direction with a position offset.

Trade mini lot: E-Global allows you to trade CFDs with a mini lot, which is part of a single lot. For example, it is possible to trade half of one lot of Ger30, limiting the risk of variation of one point of 12.50 instead of 25.00.

Hedge and Speculation: You can trade CFDs in order to open speculative positions or hedge targets.

Reduced leverage: The size of the leverage for trading CFDs, both inside the day and more than one day, is noticeably lower relative to the underlying futures.

Minimum account size: Minimum account size, to open CFD trading -? 250. In addition, the account can be replenished with a credit card.

Please note:

With the help of a leverage, you can increase your buying power, because you need less capital for trading.

If in the course of trading on an open contract, watch your level. Your contract will be automatically closed if the level reaches 50%

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Posted 06.01.2018 by admin in category "Forex, CFD's, Shares Trading