Contracts for Difference
Contracts for Difference (CFDs) are an agreement between the investor and the CFD provider to settle the difference in cash between the price at which the CFD trade position is opened and the price it's closed. Contracts for Difference (CFDs) are an incredibly powerful tool, but consistently making money trading CFDs is very different to trading shares, options or warrants, which is why you need to know more than just how they work.
A CFD will mirror the performance of a stock without owning them, and the profit/loss is determined by the difference between the buy and the sell price. Because contracts for difference trade on margin, investors only need a small proportion of the total value of a position to trade.
There are some significant disadvantages to trading CFDs, many of which are based around the fact that they are an OTC (over the counter) derivative. That means that the CFD provider, not a Securities Exchange, is the counterparty to your contract and it is their terms and conditions, designed to benefit them, that you agree to.
As Australian’s first and only accredited Course in Contracts for Difference we teach you the techniques and strategies that will enable you to protect your capital, keep you in the market and ensure you are making money today and in the future. What’s more, you will learn solid risk and money management rules that will ensure your longevity in the market. Our only concern is your success! Enquire now to get more information including course fees and course handbook.
