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CFD TRADING:
WHAT IS IT & HOW DOES IT WORK?

Want to make the most of rising and falling markets? Then trading CFDs is the
ideal solution for you. CFDs, or Contracts for difference are contracts between
traders and CFD brokers who agree to exchange the difference in value of an
asset before and after the contract.



CFD TRADING UNVEILED

A CFD is a sort of financial derivative that enables traders to speculate on the
price of various financial asset classes including forex, shares, indices,
futures, metals or commodities. 

 

When trading CFDs, traders don’t actually own the underlying instrument but
rather only trade price movements, both rising or falling, over a short time
period.


EXPLORING CFDS:
A DEEP DIVE INTO HOW THEY WORK

You can open a CFD position by choosing the number of contracts, also known as
trade size, that you want to purchase or sell. With each point the market moves
in your favour, your profit will increase accordingly. However, if the market
goes against you, you might take a loss. 
In other words, CFDs operate by imitating the underlying market. Therefore, in
addition to mimicking a typical trade that generates revenue when a market price
increases, you may also establish a CFD position that generates revenue when the
underlying market price declines.

Long position
If you believe that the price of an asset will increase, you could open a buy
(long) position and generate revenue if your predictions come true.

Short position
You could open a sell (short) position if you believe the price of an asset
would decline. Again, if your speculations are correct, you will generate
revenue.



A 6-STEP GUIDE TO CFD TRADING


UNDERSTAND WHAT CFDS ARE


OPEN & FUND A CFD TRADING ACCOUNT


PICK YOUR PREFERRED MARKET


CHOOSE A BUY OR SELL POSITION


SET YOUR STOP & LIMIT ORDERS


MONITOR YOUR TRADE & CLOSE YOUR POSITION




CFD TRADING ADVANTAGES:
WHAT SETS IT APART?

Leveraged trading
CFDs are leveraged products, meaning that you can get full market exposure for a
rather small initial deposit. Therefore, your original investment is just a
portion of the position’s total worth.
Hedging opportunities
Hedging gives you the opportunity to partially balance your losses with profits.
Trading flexibility
You can trade CFDs regardless of the direction that the markets are taking since
you can go long or short.
Longer trading hours
Some markets allow trading after the typical hours. Just be aware that the
market’s opening price and the after-hours prices may differ.


JOIN IRONFX TODAY AND PUT THE TIPS INTO PRACTICE!

Open an account
All trading involves risk.
It is possible to lose all your capital.


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MARKETS

 * Forex
 * Metals
 * Indices
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 * Forex
 * Metals
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TRADING

 * Account Types
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PLATFORMS

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EDUCATION

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 * Economic Calendar
 * VIP Trading Room App

 * Academy
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IronFX is a trade name of Notesco Limited. Notesco Limited is registered in
Bermuda with registration number 51491 and registered address of Nineteen,
Second Floor #19 Queen Street, Hamilton HM 11, Bermuda. The group also includes
CIFOI Limited with registered office at 28 Irish Town, GX11 1AA, Gibraltar.
CIFOI Limited is wholly owned by Notesco Limited.

Note: Services displayed in this website are provided by Notesco Limited and not
by any affiliate entity.

Risk Warning:
Our products are traded on margin and carry a high level of risk and it is
possible to lose all your capital. These products may not be suitable for
everyone and you should ensure that you understand the risks involved.

IronFX does not offer its services to residents of certain jurisdictions such as
USA, Cuba, Sudan, Syria and North Korea.

© 2024 IronFX. All Rights Reserved.

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Risk Warning: Our products are traded on margin and carry a high level of risk
and it is possible to lose all your capital.
These products may not be suitable for everyone and you should ensure that you
understand the risks involved.

Register

Risk Warning: Our products are traded on margin and carry a high level of risk
and it is possible to lose all your capital.
These products may not be suitable for everyone and you should ensure that you
understand the risks involved.

Risk Warning: Our products are traded on margin and carry a high level of risk
and it is possible to lose all your capital…


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