Guide to CFD Trading
Sunday, November 21st, 2010The reason that CFD trading is so popular is that it has various advantages over other trading products. The most beneficial of these is leverage, which is 10:1 or even 20:1 in some cases. With this kind of leverage, you can use a small deposit to make larger profits. As an example, if the seller asks for 10% or 10:1 leverage, it means that by investing $10,000, you can buy CFDs worth $100,000. Another advantage is that using CFDs, you can easily go short as well as go long. Thus you can get benefits from both rising and falling markets. (more…)