Jump to content

switch from CFD trading to share trading


hbrowna

Recommended Posts

  • 3 weeks later...
13 hours ago, stormtrooper2 said:

Hello, friends, I'm new here, and I would like to know more about CFD trading, could anyone explain me what does it mean?

Hello, CFD's are Contracts for difference. You don't own any asset when trading CFD's but you only trade for the difference in price of the asset you are trading. A benefit to CFD's over holding an asset is that you can set the system to automatically sell your CFD when a profit level is reached or when a loss is reached. When you hold an asset like shares the value of your asset will increase or decline but you will need to place an instruction to sell to close it off. Another benefit of CFD's is that you don't need a buyer or seller to close your trade as apposed to holding a share you will need a buyer to take your shares but if they are declining in value that makes them of little interest for a buyer of your shares.

I would sum up the benefits of CFD's as follows.

1) You don't need a buyer or seller to close or sell your CFD trade.

2) You can sell your CFD anytime your like & set the system to automatically sell your CFD if you reach your profit or loss.  This means you don't need to be at the screen 24/7, although it is advisable to monitor your trades.

Please also read https://www.investopedia.com/terms/c/contractfordifferences.asp

Edited by dau710
Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      16,594
    • Total Posts
      79,247
    • Total Members
      65,079
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Golden88
    Joined 29/11/21 21:37
  • Posts

    • Hi @Member @jasear, I have contacted the Compliance department. They confirmed that it is not the result of a class action. I can inform you that this action is being taken as the result of an internal IG decision. All the best - Arvin
    • As a brand new user getting into bitcoin for the very first time and with zero experience, so I am completely exposed and vulnerable, how donI stay safe from scamming companys out there and what signs do i look out for when my phone wont stop ringing non stop?
    • I am a brand new person looking to get into bitcoin trading, I only have $367.00 BTC which is available in three days and I want to know what is the best way for me to utilise this money and how can i use a totally automated program to take care care of all the necessary trading on my behalf.  
×
×
  • Create New...