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What are the benefits of trading CFDs?

What are the benefits of trading CFDs?

Updated over 3 months ago

CFD trading (Contracts for Difference) offers several benefits:

Leverage: CFD trading allows you to trade on margin, meaning you can control a larger position with a smaller amount of money.

Market Access: You can trade a wide range of markets, including indices, commodities, and currencies, all from a single platform.

Flexibility: CFDs enable you to go long (buy) or short (sell) on an asset, allowing you to profit from both rising and falling markets.

No Ownership: You don't own the underlying asset, so there are no costs associated with physical ownership, such as storage or transaction fees.

Hedging: CFDs can be used to hedge your existing portfolio, protecting against potential losses in other investments.

No Expiry Date: Unlike options or futures, most CFDs do not have a fixed expiry date, giving you more control over when to close your position.

These are some of the CFD benefits that can enhance your trading strategy.

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