A Contract for Difference (CFD) is a structured financial derivative which replicates the price action and movement of hundreds of securities and investment products traded daily in the financial markets.
The concept of a CFD is that it mirrors the underlying asset in terms of price movement but does not hold the liability of delivery of the contract. The flexibility of trading CFDs means when you enter into a buy or sell contract, all you are concerned with is the price movement and size of your trade. The ability to trade only price movement removes the stress of taking physical delivery of a product which can happen if you buy and sell exchange traded futures contracts.
CFDs have, low margins, zero commission and tight spreads which, combined with state of the art trading platforms gives the short and long-term investor the ability to execute their investment strategies quickly and efficiently.
Whether you are looking to hedge your current investment portfolio or looking for the ability to trade short term strategies, CFDs provide any investor with easy access to the Global Financial Markets.
Learn more about the markets and CFDs at our Trading Academy or try setting up a position on a Demo Account today.
CFD Demo Account
Practice your trading skills with One Financial Markets' DemoTrading Accounts.
Choose the platform you want to test and then complete the form to the right. We will send you an email immediately providing you with your personal login details and instructions to access our browser based platform ONE | Web Trader, or to download our desktop platform ONE | MT4. Please ensure that you provide your correct phone number to receive a complimentary platform orientation from one of our trading experts.
CFD Trading Example:
An example of trading with CFDs:
10 CFDs @ 86.90 (predicting a bearish market,
meaning you expect prices to fall)
10 CFDs @ 86.84
Therefore your P/L would be
P/L = (8690-8684) x 10
= 6 x 10
Contracts for Difference (CFDs) and margined FX are leveraged products which carry a high degree of risk to your capital. Prices may move rapidly against you and may result in you losing more than your initial deposit. CFDs and FX may not be suitable for all investors and you should fully understand the risks involved before opening an account.