What are ETF CFDs at OANDA TMS?
What is an ETF?
An ETF (Exchange Traded Fund) is an investment fund tracks the performance of a specific index, commodity, bond, or other asset. An ETF is a passive fund type that operates similarly to stocks – it can be bought and sold on the exchange during the trading day.
An ETF CFD (Exchange Traded Fund Contract for Difference) is a financial derivative that allows traders to speculate on the price movements of an ETF without actually owning the underlying ETF units.
Refer to detailed information on ETF Funds CFDs on our website.
What are the main advantages of an ETF?
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Leverage—ETF CFDs allow you to take a large position with a relatively small amount of capital (margin). Leverage trading can amplify both your potential profits and losses.
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Go long or short—You can trade on both rising and falling prices of ETFs. This flexibility can be beneficial in various market conditions.
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Diversification—By trading a CFD on an ETF, you indirectly gain exposure to the diversified basket of assets held within that ETF, similar to owning the ETF itself.
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Flexibility and liquidity—You can trade ETF CFDs at any time during the trading hours.
Am I eligible to trade ETF CFDs?
You need to have a live account (CFDs account).
How to trade ETF CFDs with OANDA TMS?
You can trade ETF CFDs on the OANDA mobile app or MetaTrader 5.
Which ETF CFDs can I trade in?
Refer to the list of all available ETF CFDs on our website.
What are the minimum and maximum order sizes?
For the minimum and maximum order sizes, check the desired instrument’s details on the instruments specification page.
What is the applicable pricing?
For more information, see the Table of Fees and Commissions in the CFDs section on the documents page.
What is the financing cost for ETF CFDs?
For more information, see the Table of Fees and Commissions in the CFDs section on the documents page.
What are the spreads for ETF CFDs?
Our spreads are dynamic. For our current spreads, check the desired instrument’s details on the instruments specification page.
What are the trading hours for ETF CFDs?
For trading hours, check the desired instrument’s details on the instruments specification page.
Is leverage trading available for ETF CFDs?
Leverage is available. For the leverage option, check the desired instrument’s details on the instruments specification page.
Can I short ETF CFDs?
You can short sell.