Why trade CFDs?
Because CFDs can give savvy investors a lot of flexibility.
With CFDs, there are thousands of products you can invest in across all the major shares and indices in Australia, the US, UK, Europe and Asia. Below is a selection of different asset classes and products you can choose from when trading CFDs on the CMC Next Generation platform:
- Foreign exchange covering over 300 different currency pairs from developed and emerging markets.
- Commodities including agricultural, precious metals, industrial metals and energy.
- Global indices covering most regions including the UK100, US30, German30 and Japan225.
- Shares from across the globe – you don’t have to stick with just Australian markets.
Your capital can go further
Trading with leverage can be an efficient way to use capital – it means you can have 100% market exposure for a fraction of what you’d pay to own physical shares. Of course, this also means it’s possible to experience losses that are greater than your initial investment.
Potential to profit whether the market goes up or down
Your profit or loss is determined by the difference between the price you buy at and the price you sell at multiplied by the number of CFDs you hold, which means you can still trade CFDs whether the market’s going up or down. In fact, shorting is often used to hedge physical share positions in volatile market conditions.
Click here for a more detailed example of a CFD trade.