A few days back I discussed how to make money online by forex trading. Today I am going to discuss another technique to earn online. This technique is widely popular as CFD Trading. CFD stands for Contracts for Difference.
Now let us throw some light on what exactly is this CFD Trading.
Contracts for Difference or CFD is an agreement between any two parties to settle the difference between the opening price and the closing price of the contract at the time of close of the contract. This difference is multiplied by the number of shares mentioned within the contract.
One major disadvantage for the stock market trader is that it is not easy to go short. However this is overcome in CFD as it is really easy to go short as well as long. But if you want to hold really long like between four to seven months, then this might not be a good option for you.
If you want to know everything right from the beginning to getting an expert in this CFD Trading, then you should refer to Contracts for Difference by CMC Markets . They are a real expert in this field.
Some Advantages of CFD Trading
- CFDs are not imposed by any stamp duty. Hence investors earn more and make bigger profits.
- You can easily leverage investments. There can be a margin of 5% to 20% which allows you to trade more than the actual capital you have.
- You receive dividends when you go long.
- The facility of stop loss is available so as to minimize your losses.
- You completely have and own the choice of the number of shared you want to trade. There is absolutely no limit on the contract size in CFD.
- You can use a single trading account to trade for stocks, commodities etc.
- Generally lower broker commissions per trade. Although this might vary from place to place.
Hence you must consider CFD Trading as an awesome technique to make money sitting from your home. It is better start off right and for that you can start here.