CFDS



WHAT ARE CFD's?

Contracts for Difference (CFD’s) enable investors to speculate on a wide range of markets, such as indices, equities and commodities, without actually requiring ownership of the underlying instrument. In effect CFD’s enable investors to take advantage of the prices moving up or down (buying or selling) on underlying financial instruments, so that they could speculate on those markets. An increasing amount of traders are turning to CFD’s as they are the most flexible method in trading the world’s leading indices and stocks.

HOW DO THEY WORK

Contract for Difference (CFD) is an over -the-counter financial agreement that is used to exchange the difference between the opening price and the closing price of the contract at its close. All you are required to do is place a regular trade with MT4Invest instead of buying/selling the actual instrument on which your contract is based. The price of the CFD always corresponds to the price of the actual instrument on which the contract is based. Traders that prefer not to be exposed to rate adjustments at the time of maturity of the contract should close their position before the expiry date. If you would like to know the exact expiry date of each CFD please go to our futures expiry date page.

WHY TRADE CFD’S WITH MT4Invest

  • Short selling ability, which creates the opportunity of generating profit in a falling equity market.
  • Online CFD trading enables investments to be leveraged up to 25 times.
  • Live streaming of CFD prices enables instant fills and better liquidity.
  • CFD contract is one-to-one with the underlying asset.
  • Low entry threshold, possible to purchase even 1 contract.
  • Trade financial markets from around the world.
  • Hedge other investments. Can be used to provide insurance against price falls in an existing portfolio due to their hedging capability.