Remember that CFD trading, like any other type of investment, can be risky when an abrupt price change of a specific asset or leverage has been used.

The contracts for difference are something mostly offered on commodities, shares, synthetic derivatives, and indices. The CFD is an agreement for trading the difference in the value of a particular asset between opening the contract and closing the contract. You can sell/short and still potentially profit from a drop in the price of an asset.

Can you use CFD trading in forex?

Of course, via contracts for difference, you can cover a wide range of assets. The word forex comes from the combination of the words foreign and exchange. There is no difference in comparison with the CFD trading of an asset or a commodity. You have a currency which you believe will rise in value, and you go long or buy it. The currencies are always in pairs, so you trade that, for example, the USD will strengthen, will rise as value, and will cost more Euros for one to buy a US Dollar.

A key thing in CFD trading: the spread

The spread is the difference between the asking price and bidding price when the opening of trade.

That is the commission a user must pay and depends on the size of the executed order. When the trade begins, it is at a minus balance because of the amount of the spread. If you click BUY, the indicated price is the BUY/ASK rate, but the price at which your position will open and trade will be the BID/SELL rate and vice-versa.

That is why at the beginning of the trade, you should wait a bit for the market to cover the initial commission and then to go to profit. In case you close the position right after it has been placed, you will pay its spread.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

The Company would like to announce its decision that, as of 07th August, 2022 it will no longer be providing investment services.

For any further clarification, please contact our Customer Service Team.

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