Have you ever heard the word “CFD” and wondered what is actually is? If you did, this article is definitely for you. We will try to uncover what CFD is, how to trade it and, more importantly, how to do it on the Opteck platform. This broker has recently made it possible and this option became popular very quickly.
What to use it as well? Read on to know more.
What is CFD Trading?
So, what does CFD stands for? According to financial terminology, CFD means Contract for Difference. This term represents a financial instrument that is used by two different parties to trade the difference between opening and closing price of one contract.
While trading CFDs, a trader doesn’t exactly own any specific asset. Instead, they play on the price difference between its opening and closing prices. This allows trader to boost their profits rapidly and maximize their income.
Let’s imagine a particular stock has a price of $35.36 and a trader buys 100 shares at this price. The cost of this transaction is $3,526. When trading with a traditional broker and using a 50% margin, the trade would require at least a $1,763 of cash from a trader. But is they are using a CFD broker, only a 5% margin is required and this trade can be entered with only $176.30.
CFD Trading with Opteck: Why and How?
As you can see, CFD trading is extremely attractive and wonder it’s so popular. Just recently, one of TOP recommended binary options brokers, Opteck, has decided to extend their trading portfolio and add this new way of online investments, CFDs.
Opteck has been online since 2011 and it is one of the most popular and significant brokers in the industry. It differentiates itself with its platform that simple to use and suitable for both beginners and traders experts. They offer over 1000 assets to choose from. That is why Opteck is an excellent option to trade CFD with. It enables traders to have multiple positions simultaneously and trade successfully on financial markets.
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