Forex Brokers with CFD trading are fx brokers that offer their traders the possibility to trade CFDs (contract for difference).
What is a CFD?
A Contract of Difference (CFD), is well known form of derivative trading. CFD trading enables traders to speculate whether the price of fast moving and volatile global financial markets, such as forex, metals, commodities, shares, indices and treasuries will go up or down.
CFDs have become one world’s fastest growing trading instruments in the market, and demand from traders increases with every market fluctuation. A contracts for difference(CFD), as the name indicates, represents a contract between two parties(usually the broker and the trader) speculating on the movement of an asset’s price. CFDs are usually traded using leverage, which gives traders more trading capital and flexibility to manipulate small price movements.
Why is CFD trading popular?
Trading CFDs is a very popular and efficient way for traders and investors in general, to trade the global financial markets. Their popularity is increasing due to the following reasons:
- CFDs are Flexible – traders can trade the rising as well as falling markets
- CFDs are Leveraged products – traders can trade big volumes with smaller capital
- They are great hedging tools – CFDs can be used to offset any potential loss in value of your physical investments by going short
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CFD Trading Forex Brokers List
MAS, JFSA, DIFC