With the rise of the stay-at-home culture taking shape over the world, many people are entering the world of online CFD trading from the comfort of their homes. A quick online search will reveal a huge selection of brokers, a variety of financial instruments, and (hopefully) just as much educational material to help you make sense of both. But before you embark on CFD trading with iFOREX, a leading European broker, take some time to learn a bit more about the world of CFD trading and all it entails.
How does it work?
CFD stands for Contract For Difference, which is essentially a contract between a buyer and a seller to settle on the difference in value of a financial instrument from the time the contract is bought until it is sold, or vice versa. One contract is usually equivalent to one unit of whatever you’re trading in, for example one barrel of oil or one Amazon share. Therefore, CFD trading is all about speculating on an instrument’s price, and trading on the movements of this price. In other words, trading on volatility.
CFDs are attractive to traders for a few reasons. With CFD trading, you don’t need to purchase the underlying asset, so you can start with a smaller amount of capital. In addition to this, you can open deals on both the upwards and downwards movements of instrument prices. For example, you’d open a “buy” deal if you think the price is going up, or a “sell” deal if you think the price is going down. CFD trading allows you to diversify your portfolio into many different areas of the markets, without having to purchase the assets themselves, giving traders the chance to get a taste for different sectors of the market.
Getting started
The first step on your CFD trading journey is to find a broker that you feel comfortable trading with. It’s always a good idea to look for a broker that’s regulated, which means they adhere to a high standard of conduct and operation. One such broker is iFOREX, a leading European regulated broker offering hundreds of CFD instruments and an approach to educating all clients. Before committing to a broker, be sure to check out the broker social page to get a better idea of the broker’s personality and all that’s on offer. A broker social page can also be a great source of relevant trading information such as market news, financial insight, and fun facts about the world of trading and money. When it comes to CFD trading, there’s no such thing as too much information.
Your broker should also fit your unique trading requirements. For example, if you’re looking to improve your knowledge, CFD trading with iFOREX can offer you a variety of educational materials, from articles to video tutorials, and most importantly, one-on-one training with a trading coach.
The next step is to choose the instruments you’d like to trade and build your portfolio. When CFD trading with iFOREX you can choose from hundreds of instruments including shares of leading brands like Apple, commodities like WTI oil, popular ETFs, top global indices, forex pairs like EUR/USD, and much more. With such a wide selection, it’s important to choose instruments that you are not only interested in but can easily get information about. That way, you can anticipate price changes and make more informed trading decisions. Speaking of, when CFD trading with iFOREX, you’ll have access to a selection of advanced trading tools such as market alerts, trading signals, detailed analysis charts, and lots more to help you stay on top of the markets. And once you’re ready to start incorporating trading strategies like fundamental and technical analysis into your method, access is just a click or tap away.
Practice makes proficiency
All trading comes with risk, but the more practice you have, the more skilled trader you can be in the long run. To that end, before CFD trading with iFOREX, take advantage of the $5,000 demo account, which you can use to take the trading platform for a test drive and get a feel for how it works and all that’s on offer.
iFOREX’s signature 1-on-1 training with a live trading coach can guide you through the act of trading CFDs and explain the importance of each step. That way, you can develop your CFD trading skills at your own pace. Once you’ve armed yourself with knowledge, tools and practice, you should be ready to hit the markets and begin CFD trading with iFOREX.
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