A contract for difference (CFD) allows individuals to speculate on the price movements of various financial markets, such as forex, equity indices, commodities, and shares.
CFDs, also known as derivatives, allow traders to gain market exposure without owning the underlying asset
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CFDs also provide an opportunity to express your opinion on the future direction of a market. Essentially, you are making an agreement with us to trade the value of an instrument based on its opening price and the price at which you decide to close the trade in the future.
CFDs provide you with the opportunity to trade global markets in both bullish and bearish conditions, allowing you to take advantage of both upward and downward movements.
Unlike other financial instruments, cash-based CFD trades do not have an expiry date.
When trading CFDs, you’ll need to allocate a portion of the total market value of the position as its exposure. With a small initial capital outlay, you can gain significant market exposure through margin or deposit.
Understanding leverage allows you to make your capital work harder, but it’s important to be aware of the potential for greater fluctuations in your portfolio’s profitability.
However, it’s important to note that CFD trading carries a higher level of risk due to the use of leverage, which means there is a possibility of incurring significant losses beyond your initial investment.
The cost of trading CFDs with us varies based on your selected account type.
It’s important to take into account any additional commission charges when comparing accounts.
Calculated based on the corresponding swap rate. Many traders holding significant positions often close out before this time, which can be a crucial consideration.
Successful CFD traders come from various backgrounds and possess unique qualities. They are driven, enthusiastic about financial markets, and always eager to expand their knowledge.
Our clients typically have a greater appetite for risk and are aware that using leverage can amplify both gains and losses. A successful trader understands the importance of effectively managing risk.
Given the significant leverage involved, CFD traders often prefer to hold positions for shorter durations, necessitating closer monitoring of their positions and portfolio.
To ensure success in CFD trading, it is crucial to prioritise risk management. We suggest taking advantage of our extensive collection of webinars that focus on managing risk.
Opening a demo account allows you to assess if CFD trading aligns with your goals and refine your trading strategy.
Getting started is a breeze. Apply quickly and easily with our streamlined application process.
You must be at least 18 years old to use the services of Volity Trade Ltd.
Trading forex (foreign exchange) or CFDs (contracts for difference) on margin carries a high level of risk and may not be suitable for all investors. There is a possibility that you may sustain a loss equal to or greater than your entire investment. Therefore, you should not invest or risk money that you cannot afford to lose. The products are intended for retail, professional, and eligible counterparty clients. For clients who maintain account(s) with Volity Trade Ltd., retail clients could sustain a total loss of deposited funds but are not subject to subsequent payment obligations beyond the deposited funds. Professional and eligible counterparty clients could sustain losses in excess of deposits.
Volity is a trademark of Volity Trade Ltd, registered in Saint Lucia with the number 2024-00059.
Volity Trade Ltd. does not offer services to citizens/residents of certain jurisdictions, such as the United States, and is not intended for distribution to or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.