With CFD, Contract for Difference, a financial derivative product, you can speculate on stocks, stock indices, currencies, cryptocurrencies, options and commodities' price changes without having to own the underlying asset.
With the help of leverage, traders who have limited amount of capital can increase their capital by borrowing from the broker. With the leverage the gains are greater, but losses are also greater. Leverage can be applied to both buying and selling positions.
A trader can train on a free demo account , which is loaded with virtual money, to learn how the trading platform works, how to trade and practice different strategies. Winnings cannot be withdrawn and losses do not affect the trader in a training account.
Social Trading attracts traders from all over the world. They discuss with each other, give tips and advice and share their investment strategies on social trading platforms. With the help of each other's successes, traders can succeed better with their own trading.
There are hard and soft raw materials . The former are metals such as gold and copper and energy products, oil and gas. Soft raw materials consist of agricultural products such as wheat and coffee. Trading in raw materials is usually done with future contracts, the price will be decided in the future depending on supply and demand.
Currency trading is also called Forex trading. When a currency is bought, another currency is sold and therefore they are referred to as currency pairs, for example EUR/USD and GBP/USD. When investing in currency, the trader guesses either an increase in value or a decrease in value.
A stock is a share of a limited company such as Volvo, Tesla and Microsoft. When trading stocks with CFDs, the trader speculates on the stock's value development, which goes up or down. Stock CFDs are traded with leverage.
Cryptocurrency is a digital/virtual currency, and has become increasingly popular as we approach a cashless society. The virtual currency is not controlled by any central bank and cannot be taken out and put in the physical wallet. Ex. on digital currency are Bitcoin, Etherum and Litecoin.
Index is a collection of stocks that shows the development on the stock exchange over a certain period of time and how a certain market is valued. Indices are measured in points and therefore indices are traded via CFDs where you invest in the value difference. Examples of well-known indices are OMX30, NASDAQ and Dow Jones.
CFD trading and Forex are associated with high risk as leverage trading can lead to a loss of the invested capital. Historical returns are no guarantee of future profits. Remember to never invest more money than you can afford to lose.