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What is a CFD?
CFDs (Contracts for Difference) are one of the fastest growing financial products in Australia. A CFD offers the benefits of trading shares without having to physically own them. A CFD is an agreement to exchange the price difference of a share between the time a contract is opened and the time at which it’s closed. Similar to physical shares your profit or loss is determined by the difference between your buy and sell price. However with CFDs you don’t need to outlay the entire value of the share, but rather, you trade on leverage.
Trading CFDs is very similar to trading shares, but with some important advantages.
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Leverage
CFDs are traded on margin, which means for a small outlay you can open up a much larger position in the market.
Going short
It is just as easy to sell a CFD as it is to buy because with CFDs there is no physical transaction. Going short means opening a position by selling with the aim of profiting from falling CFD prices.
Trade CFDs over global markets
Trade CFDs over Australian and global markets from a single trading account. CFDs can be traded over global Shares, Sectors, Indices, Treasuries and Foreign Exchange.
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