CFDs are highly speculative financial derivatives that are only suitable for investors who know not only the opportunities but also the particular risks of this asset class. How CFD trading works and what investors should look out for when trading CFDs and choosing a CFD broker.
CFDs (Contracts for Difference) is categorized as a derivative. The Value of CFD derived from the underlying assets value, for example, from a share or an index.
With CFDs, investors do not acquire a stake in a company or any other real asset.
CFD trading strictly regulated since August 2018, but that has changed.
Here are a few things to keep in mind when choosing your CFD broker:
Tips for choosing the best CFD portfolio.
CFD TRADING – RECOMMENDATIONS & TIPS
Anyone who trades CFDs should know that they are dealing with highly speculative financial derivatives.
CFD trading is attractive for investors who are willing to take risks because they can also use CFDs to speculate on underlying assets that a “normal investor” cannot trade.
Find out all you need to know before you start trading CFDs. Choose your CFD broker carefully; the conditions of CFD providers can differ significantly.
You can trade CFDs at Plus500 or eToro, for example. You can find more providers in our CFD broker comparison.