{"id":11596,"date":"2019-09-12T22:13:38","date_gmt":"2019-09-12T16:43:38","guid":{"rendered":"https:\/\/www.stechguide.com\/?p=11596"},"modified":"2019-09-12T22:13:38","modified_gmt":"2019-09-12T16:43:38","slug":"how-to-start-cfd-trading","status":"publish","type":"post","link":"https:\/\/www.stechguide.com\/how-to-start-cfd-trading\/","title":{"rendered":"How to Start CFD Trading"},"content":{"rendered":"
Before you risk your money, you should have a clear view of what you should expect from CFD (contract for differences) trading. Remember, trading is a business. It’s not a hobby and its not gambling. For you to be successful over time, you need to have an idea of why you are placing a trading and the most efficient way to execute your trades. You don\u2019t have to watch the markets 24-7 to be successful, but you do need to protect yourself by having prudent risk management when you execute CFD trades.<\/p>\n
<\/a><\/p>\n Contracts for differences are financial products that track the underlying movements of specific assets. For example, a CFD on West Texas Intermediate crude oil tracks the tick for tick movements of crude oil. Instead of having to purchase crude oil or a crude oil futures contract, you can purchase a CFD which tracks the movements of crude oil. A CFD allows you to trade crude oil and provides you with a mechanism to buy and sell it using leverage.<\/p>\n You can trade CFDs on several different types of products. This includes currencies, commodities, equity shares, exchange-traded funds, indices, and cryptocurrencies. The benefits of trading CFDs are substantial. You only need to post a small amount of the total costs, when you trade CFDs using a margin account. You also do not have to worry about any operational aspects such as rolling forward your currency position.<\/p>\n When you trade a CFD, you do it within a margin account. A margin account is a brokerage account that provides you with a loan to purchase and sell CFDs. When you take out the loan, you are doing this through a transaction. Your broker will allow you to purchase up to 50-times the value of an asset using a contract for difference. This means that you only have to post 1\/50 of the amount of the asset you are purchasing when you buy or sell a CFD.<\/p>\nWhat is a CFD?<\/h3>\n
What is Leverage<\/h3>\n
Determining What to Invest In?<\/h3>\n