Basic Introduction To CFDs Trading

A contract for difference (or CFD) is a relatively new financial derivative instrument that enables traders to speculate on assets price over-the-counter movements, without owning the underlying assets. CFDs are traded (OTC) and settled in cash. CFD is a contract between the trader and the broker, stipulating that the broker will pay to the buyer the difference between the opening value of an asset and its value at the closing time (If the difference is negative, then the trader pays instead to the broker).
CFD Is a leveraged instrument which means that Rather than pay the full value of a transaction the trader is only required to pay a percentage. When opening a position it is called Initial Margin.
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Understanding CFD Trading
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