CFD trading provides a number of significant advantages to the traders which have made it popular as a great alternative to the traditional trading methods. Those traders who want to utilize the benefits of the changes in asset prices without actually owning the assets can find CFD trading with XTrade very beneficial. The growing popularity of this trading instrument can be seen by the fact that hundreds of online CFD brokers have emerged and you can easily find an online CFD broker near you providing dozens of offers and benefits to you for trading CFD. Let us have a look on the key features of CFD trading.
CFDs are traded on margin
When you open a position in CFD trading you only need to pay a percentage of the position opened and that is called margin. The key advantage is that trading CFD on margin allows you to buy more value of shares, currencies or any other asset than you could do when actually trading on these assets through your XTrade account. The most important thing is that the margin money has to be kept for the positions opened and if the margin money reduces due to a position moving against you, it has to be filled with additional money to keep other trades open.
Trading CFD is possible in both rising and falling markets
CFD trading allows you to trade both in rising as well as falling markets. You can trade both long and short in CFD trading and this way you get the ability to profit even if the price of a share or any other underlying asset falls if you trade the right way.
Zero stamp duty with XTrade
You don’t actually own the underlying assets and because of this you don’t have to pay the stamp duty to XTrade.
Trading on a variety of markets
Trading CFD is possible in a variety of financial markets and it includes currencies, stocks, indices, commodities and others. A trader who has an experience in traditional markets can use the knowledge and experience in the field of CFD trading and trade on the movement of the prices only without owning the real assets. Today most of the brokers like XTrade provide full range of markets and traders can build a portfolio of trading CFD in different markets. If used wisely, an investor can use CFDs to offset the losses made on trading in traditional markets.
Online CFD trading
Trading CFD online is a great option for the online traders who can manage the business right from their home and convenience. Through online trading platform provided by the brokers all the activities of CFD trading can be done including the execution of CFD trade orders as well as analysis and other activities related to CFD trading. The online method of trading CFDs is very convenient and it can be done from anywhere by using just a laptop, Smartphone or an internet connection.