Trading Info

CFDs: A Quick Introduction

CFDs (Contracts for Differences) allows online traders to speculate on the rising or falling prices of fast-moving global financial markets (or instruments) such as shares, indices, commodities, currencies and bonds. CFD involves the same trading practices as the actual ownership of the underlying assets, but when trading CFDs traders do not own those assets. Traders buy or sell a number of units of a particular instrument depending on whether they assume that prices will go up or down, and the difference between open price and closing price is the profit or loss of traders.

Trading CFD is associated with the risk of loss, this is a concept that is important to remember when you start trading on Forex.

Being one of the Top online brokers, Ainvesting offers CFD trading on many of the most popular instruments on the financial markets. Traders using the brokerage services of Ainvesting have an opportunity to operate without any additional exchange charges and no Stamp Duty is obligatory for them. Ainvesting enables its traders to trade shares, cryptocurrencies, currency pairs, indices, shares, or commodities with no need to possess a huge capital for these trades.

Trading in Contracts for Difference eliminates a huge amount of exchange-related fees and charges from brokers. There are no stamp taxes and no hidden commissions. There are no costs related to the shipment of shares, the registration of these shares, and cleaning or holding costs that arrive at the time of actual physical purchase of shares or other financial instruments.

Obviously, CFD traders are not empowered with voting rights with regard to the shares that they hold on CFD-trading. However, they do get the equivalent of cash, for any declared dividends.

Example:

YInstead of buying 1000 shares of Apple on the brokerage site, the trader decides to buy 1000 CFDs of Apple on the Ainvesting trading platform. In case of Apple shares sell off, and drop $4 in price, the trader will incur a loss of $4000. In case of an increase in Applis shares of $ 4 per share, the trader will receive a profit of $ 4,000 in the same way as if he bought the actual shares of Apple.

Order Execution Policy
Trading CFDs involves significant risk of loss. Trading FX/CFDs involves a significant level of risk and you may lose all of your invested capital. Please ensure that you understand the risks involved.