Leverage
Forex CFDs (or FX) are traded on margin, typically 100:1 leverage. This means you only have to allocate a very small proportion of the value of your position to secure a trade, while maintaining full exposure to the market. In effect you are increasing your profit (and loss) potential.
24 hour market
FX trading is a true 24-hour market, beginning in New Zealand followed by Sydney, and moving around the world to Tokyo, London and New York. Unlike any other financial markets, investors can respond to currency fluctuations caused by economic, political and social events at the time they occur, without having to wait for markets to open.
Liquidity
The FX market is open 24 hours. It is the most heavily traded financial market in the world, with a daily average turnover of well over US$2 trillion. With so many market participants trading over 24 hours, the FX market is more liquid than any other financial market.
For example if you trade a particular currency pair, whether it is for $10,000 or $10,000,000 trade, you will typically receive the same CMC Markets quoted price, which may not be the case for CFDs over less liquid markets such as the share market.
