Before openiny any business account, the first step to succeed in trading is to get to know basic terms. In the very beginning, we will explain and divide professional trading instruments such as stocks, commodities, indices and currency pairs. One should get to know these terms regardless of their interest, be it securities trading or contracts for difference (CFDs). This article will reveal more information on each instruments as well as its advantages.
Once you decide to take advantages of trading via online interface, you will need a trading platform enabling you to realize your trade orders to buy or sell trade instruments, provide you with data analysis and control your open positions.
Leveraged trading is very popular when trading with CFDs, as it enables multiplying of the traded volume. When using leverage, you trade with your capital as well as capital borrowed from a broker. It’s important to bear in mind that leverage trading multiplies both profit and loss. Even when capital markets seem stable, leveraged trading can cause high gain or significant loss very quickly.
Physical securities, CFDs, ETF or funds? Do you have problems understanding the terms? The term of CFD trading is quite well-known among traders and you will learn more about it in this article.