CFD Trading Offers Great Opportunities to Make Profit

Posted by icmarkets on January 21st, 2015

CFD trading is gaining great popularity, especially for online traders. Not only are CFDs quick and accessible, they also give traders the power to pit against share price movements without the need to buy or sell physical shares. CFDs are so accessible that trading through a stock broker is no longer necessary because trading is quick and selling shares is easy. Used wisely, CFDs can also help you make profit even when markets are falling.

CFDs allow you to trade on margin, which therefore enhances both risk and return on your investment capital. In essence, trading, CFDs do not necessarily need you to put the full value of the shares you have up for trade. Instead, you pay the margin to cover the potential loss on the position. The deposit you have to pay is only a fraction of the full value of the contract.

CFD contracts should replicate, as closely as possible, its equivalent share transaction. It is not the same as financial spread betting, where you are banking on the share price's per point movement. Instead, you buy or sell a certain number or quantity of the CFD equivalent to the amount or number of shares, even though no physical transaction actually takes place.

CFDs offer exciting opportunities to make profit because instead of asking for commission for trading CFDs, CFD trading platforms will often only apply a minimal spread to the underlying or actual market spread, maximizing your chances of profit without taking away huge commissions as with traditional trading. The best CFD trading platforms can easily be accessed, cross-platform, providing you all the functionality of a comprehensive spread betting platform that allows quick and fast trading over a great range of markets.

Additionally, CFDs is not just used for equity trading. They are also used for many other markets such as forex, stock indices, energy contracts, and many other commodities and these markets are accessible through the best online trading platforms. Trading on non-equity markets allow you to buy and/or sell a specific number of contracts, each representing a given return or risk of the underlying market. This makes CFD trading a great investment for many, including novice traders who want to get a taste of what the markets are all about. They are also excellent tools to expand your trading portfolio and not to mention your income resources.

About IC Markets

Headquartered in Sydney, International Capital Markets Pty Ltd is a provider of online forex trading services, offering individual traders, money managers and institutional customers proprietary technology, tools and education to trade online. IC Markets has distinguished itself among industry leaders with its unique True ECN forex technology, proprietary tools and services, and remarkable focus on customer service. IC Markets is regulated by the Australian Securities and Investments Commission in Australia.