Ever heard of CFD? Lately, it is the hottest asset classes to be traded. Now if you’ve heard of it but haven’t got the chance to learn about it, here are some explanations on what is CFD and why you should try it now.
CFD is a short for ‘contract for difference’, by contract it means the agreement between you and your preferred broker that offers CFD. This asset focuses more on the price change of the underlying security from between the time you enter and exit the contract.
By so, you might gain profit regardless the situation of the market because you don’t actually own the said security. There are various assets available for CFD including stocks, forex, indices, crypto and commodities.
Benefits of CFD:
Make profit regadless of situation
Since you dont actually own the security, you can profit from the margin of when you enter and exit the contract.
Higher Leverage
CFD gives trader a higher leverage than traditional trading and it’ll enhance your chance of profit using the trading capital more efficiently.
Faster Execution and Lower Transaction Cost
when you directly purchase an asset such as cryptocurrency for example, there are steps that you’re required to take. These steps might take days to complete and thus the price might have changed a lot, considering the highly fluctuative market of cryptocurrency.
Moreover, broker usually impose higher fees for a direct asset purchase. Here, CFD benefits you the time and money.
In recommended brokers such as Fullerton Markets, you can expet instant fills with lower cost. This will also save you the hassle of opening a crypto wallet.
It also has no settlement period so that you can immediately receive the profit once you close the trade.
