What are the advantages of trading CFDs?
A few advantages of trading CFD contracts are:
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They offer a low entry barrier thanks to leverage. With it, you can trade larger positions nominally, requiring less commitment of your capital. You can potentially profit from both rising and falling prices.
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You can potentially take advantage of declines in instrument prices through short selling. Such a transaction is done similarly to a buy transaction and can be executed at the current (market) price.
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This instrument is fractional, which means you can open a position for tenths or hundredths of it.
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Lack of currency risk, as only the result of the transaction is converted into the currency of the account at the current market rate.
To learn more about CFD contracts, refer to our website.
CFD and Forex trading based on leverage are highly risky for your capital, if you invest in this product you may lose some or all of the money you invest. Therefore, CFD and Forex may not be suitable for all investors. Make sure you understand the risks involved and, if necessary, seek independent advice.