The Basics of CFD Trading

CFD trading is traded in between private traders and CFD providers. A CFD contract is started up by establishing an opening trade in on a set product with the CFD broker. CFDs are traded on margin, which is highly risky, however, as you can see by the example above, can be extremely profitable. Margin is often referred to as leverage, which allows the buyer to only open their positions with a portion of the actual cost.

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