Contract For Difference(s).
CFD is the acronym of Contract for Difference(s). In CFD, we trade the stock in a "derivative" way in, means that we only trade a contract value of a stock. Therefore, the 'two ways opportunity' can be used in CFD trading. It means we can take advantages of opportunities from the rising and falling of the stock prices.
So, although stock prices market is down or is in a downtrend, we can still look for profit opportunities.
MySmartFx presents more than 100 CFDs. It would be more interesting because we have nothing to fear if its stock price down, because we can SELL in line with falling prices. All these shares will be traded in a single platform (software) trading, so it would be easier for us to monitor the movement of prices and make transactions.
Click here to see a list of stocks provided by MySmartFx. To learn more about CFDs, please visit our education page.
Here is a table of comparison between the common stock trading with stock trading by CFD:
|
Comparison |
STOCK TRADING |
CFD |
|
Margin |
100% |
5% |
|
Short Sell |
Expensive and Limited |
Possible |
|
Dividend |
Yes |
Yes |
|
Overnight Charge (swap) |
No |
Yes |
|
Contract Size |
Per share |
Per Lot (*1,000 shares for US and Japan stocks, 10,000 shares for Hongkong stocks) |
|
Que |
Yes |
No |
|
Spread |
Varied |
Fixed * |
|
Ownership (of company/share) |
Yes |
No |
*at normal market
