What is CFD Trading?



What is CFD Trading?

Contract for Differences also known as CFD is an agreement between two parties to switch the difference between the opening price and closing price of a certain contract. A CFD is a financial instrument that can be traded, it replicates the movements of the assets under it.

CFD enables you to trade and predict the price movements of the variety of financial markets, whether the markets are gaining or declining. You can place a buy on  a CFD market and earn from the prices as they yield or sell and gain from declining prices.

Remember that  when a CFD trade is listed, the position will display a loss equivalent to the size of the spread.

Trade12 allows traders to execute deals in different assets such as commodity futures, stocks, indices and energy markets with ease and security.

Equity Shares

Is the buying and selling of a companys stocks. Trade12 provides a variety of the most traded stocks to choose from such as, Microsoft, Apple, Alibaba, Amazon, Google, and Facebook.

An equity share is known as a type of security that represents an ownership in a company, indicating a shareholder’s  claim to a part of the company’s assets and earnings. As a shareholder gain more stock, ownership stake in the company becomes greater.

 

Commodities

A commodity refers to a primary good used in business, which can be traded with other commodities of the same kind. Commodities are commonly used as input materials in manufacturing of other goods and services.  

There are two types of commodities. The first one is called "Soft Commodities", involving agricultural products like sugar, corn, coffee, and wheat. The second type is called "Hard Commodities", involving extracted natural resources such as gold, nickel, copper, silver, natural gas, gas oil, and crude oil.

 

Stock Indices

The stock market index is a statistical assessment of the value of a division of the stock market. It is calculated from a collection of the prices of selected company stocks. It is used by market participants to interpret the market and to compare the return on particular investments.

A stock index is a mathematical construct, which cannot be directly invested. Some examples of indices include DAX, DOW Jones, NIkkei Index, and the S&P 500.

Read more Trade12 reviews and information about stocks, commodities, indices and currencies.  Create a live account and start trading online and join our best forex broker.