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What is CFD?

Rely commodity CFD trading methods and advantages

What is Contracts for Difference? In finance, a contract for difference (CFD) is a contract between two parties, typically described as "buyer" and "seller", stipulating that the buyer will pay to the seller the difference between the current value of an asset and its value at contract time (if the difference is negative, then the seller pays instead to the buyer). CFDs on CFDs are traded on margin, and only a small amount of principal is required to complete financial transactions in the tens to hundreds of times. Six advantages of CFDs Compared with traditional financial transactions, CFDs have six advantages. In addition to the advantage of efficient use of capital, they also have the characteristics of extraordinary transaction time of 24 hours a day and flexible two-way transaction methods. If you are a CFD trader, you may trade like this: -Learned that the UK wants to vote for Brexit, then you enter the foreign exchange market and choose to go short -Knowing that there is yet another turmoil in the Middle East, the price of gold may rise, and you enter the commodity market to buy gold CFD trading case For CFD trading, investors can open an account online at home. They can also learn about market rules online, and then buy or sell by focusing on the rise and fall of asset prices. If you think the price of gold will rise from 1200 to 1230, then buy a CFD on 1 standard lot of gold. If the price rises to your expected point, you will get a profit of 30X * 780 = HKD23400 Margin System Margin trading allows you to use only part of the normal funds required to complete a position transaction in a market Margin refers to the funds you need to open a position, the amount of which is determined by the margin ratio. Flexible margin system in CFD trading Forex Spread The spread, which is the difference between the buying price and the selling price, is the transaction cost paid by the trader. Can buy up and down two-way trading In CFD trading, many assets can be bought and sold, and the price increase can make a profit, and the price drop can also make a profit. There is no need to be limited to one direction, as long as the direction of entry is consistent with the trend of the actual market, you can get a profit. Most trading varieties can be traded multiple times on the same day, T + 0, no restrictions There are no restrictions on the operations of opening and closing multiple rounds within one day. Even if it is a three-minute advance field, it can be played immediately after three minutes, regardless of the number of times. Compared with investments that can only carry out the T + 1 trading mechanism, CFD CFDs are more conducive to short-term trading and risk management. Long transaction time of 24 hours a day MT5 is a trading platform developed by MetaQuotes and is widely used in the CFD market. Choose RELY trading platform, you can get customized plug-ins and indicators for free The long transaction time of 24 hours a day allows traders in different time zones around the world to trade at any time, without being restricted by fixed trading hours. Simple and convenient operation In the MT5 trading terminal, the transaction is very convenient and convenient. Orders can be completed in 4 easy steps: choose trading assets, enter lots, set profit and stop loss (depending on the situation, you can also ignore this step), choose to buy or sell at market price, a single transaction enters the market too. Trading risk is easy to control You can quickly set up stop profit and stop loss to fix the risk and keep the profit. When entering the market, you can set a stop loss range and fix the potential risk in a closed range. No matter the market skyrocketing or falling, as long as the stop loss is reached, you can automatically exit the market. Of course, we must also take into account that the phenomenon of inability to exit accurately at the stop-loss price caused by liquidity scarcity caused by light market liquidity and price fluctuations during the data release period. Trading window A trading window, you can quickly set the "lot size" "stop loss price" "stop profit price", and finally click "sell" or "buy", a list successfully entered the market.