EDUCATION

Home Education What is CFD

WHAT IS CFD


Forex Ltd offers its Clients an alternative financial tool CFDs contracts for difference. Contract For Difference is a an agreement between seller and buyer, where seller is stipulated to pay the difference between the opening and closing prices of an asset (buyer pays instead of seller in case when the difference is negative ). Contracts for difference allow you to trade shares without physically owning them. You get many benefits of share ownership including dividend payment* and price performance.

We provide a comprehensive range of CFD instruments including shares of 30 US companies making up the Dow-Jones Industrial Average list and exchange traded funds. Trading CFDs has lots of benefits, including:

Margin trading

As well as Forex CFDs are traded on margin. Forex Ltd provides 1:10 leverage for CFD trading, which means that you need to provide just 10% of the whole deal;

Low commission

Striving to provide the most competitive trading conditions in the market, our commission for CFDs is as low as 0.5%, which is one of the lowest among other participants;

Go short

Trading CFDs allows you to both buy an equity and sell it, so that you can earn when the market goes down without previously buying the share;

No stamp duty

Because you do not physically own the underlying shares, you don't need to pay stamp duty when trading CFDs unlike when trading shares;

Risk Management Facilities

Manage your trading risks in fast moving market using Stop Loss, Take Profit and other pending orders applied in Forex trading;

Instant Execution

A technology of executing trading orders immediately without any preliminary market price inquiries makes your trading more efficient and thus more profitable.

You can see the advantages of trading CFDs with Forex Ltd by opening a demo account. To open a training account, please download MetaTrader 4 Forex Ltd, install it to your computer and follow the guide upon initial start of the program.

Important! CFDs are available for 100k account holders.

Should you have any questions regarding CFDs trading, please feel free to contact us. In case your question is related to your trading account, please use internal mailing system of the Client-Service.

* Please go to our Dividend Payment Calendar page for full details.

CONTACTS

+44 20 8133 87 01
Contact Form

Daily technical analysis with commentsTrading, charting and quotes in your PDAFind out about Forex Market advantages