CFDs Trading

Trade CFDs on over 400 Stocks, Indices and Commodities

What are CFDs?

A CFD or Contract For Difference is an agreement made between a Seller and a Buyer for the difference between the opening and closing price of a particular financial instrument. Trading CFDs essentially puts yourself against the market. You open a Buy or Sell position for a CFD on an asset with the expectation of profiting from the difference between the Opening and Closing prices. The Opening price is the value of the CFD when you open the trade and the Closing price is the value of the CFD when you close the trade.
Open a Buy position on a CFD at X and close it at 2X and you’ve made a profit on the trade. CFD trades can be Long or Short so the reverse works in your favor as well. Open a Sell position on a CFD at 2X and close it at X and you’ve made a profitable trade.

How to trade CFDs

As with most traded securities, CFDs can be traded Long or Short. If you believe the value of the undying asset will rise, you open a Long trade, hoping to sell the CFD for more than the initial purchase price. If you believe the value of the underlying asset will fall, you open a Short trade, hoping to cover the position at a price lower than your sell price.
CFD trades are made on fixed contract sizes and not the actual underlying asset. For example, CFDs on Stocks are negotiated on the value of 100 shares in the company in question.
For example, a CFD on Facebook stock would be for the value of 100 shares in the company. At current prices of around $280, the contract price of a CFD in the social media giant would be for $28,000.
If you open a Buy position for a CFD on Facebook and the share price rises to $290, then your closing value would be $29,000 for a profit of $1,000 on the trade.
It’s important to note here that you aren’t buying the actual shares. CFD trades involve monetary value only and not the delivery of any underlying assets.
CFDs are leveraged products, where leverage is essentially a “loan” your broker makes to you. Open an account with a broker offering 1:30 leverage and for every $1,000 you deposit in your account, your broker would effectively lend you $30,000 in trading power.
At this 1:30 leverage, opening a CFD contract for our Facebook example would require funds of $933 in your account.
CFDs can be traded in both directions. Buy positions if you believe the price of the underlying asset will rise and Sell positions if you believe the price of the underlying asset will fall.
TradeGM offers CFDs on Commodities, Indices, and Shares on the MetaTrader 4 trading platform, the platform of choice for millions of traders around the world.

“For difference”

At this leverage, you would need $2,845.56 in your account to trade a full contract of Google shares. Sticking with the Google example, if you believe the share price will increase, you will Buy a contract which would then be Sold back at the higher price. This is where the “for difference” comes in. There is no physical delivery of Google shares involved. The contract is purely for the difference between the opening and closing prices. Buy a contract for Google at USD 853.69. Let’s assume the share price rises to USD 875.69. Closing the trade makes a profit of $22 per share (875.69-853.69) for a total on the contract of $2,200 (22 x 100).
Conversely, if we think Google shares will fall in value, we would sell a contract at the USD 853.69 level. Assuming the price falls to USD 831.69, the closing the trade again makes a profit of $22 per share for a total on the contract of $2,200.

TradeGM offers CFDs on Commodities, Indices, and Shares on our MetaTrader 4 trading platform, bringing advanced trading features to your CFD trades.

The clients of eBrókerház Befektetési Szolgáltató Zrt. open orders through the Trade GM Trader Online Trading Platform, the orders will be forwarded to an execution venue defined in our Execution Policy. Trade GM Trader Online Platform is operated by eBrókerház Szolgáltató zrt, which is authorized and regulated by the Hungarian National Bank under the licence numbers III/73.059/2000. and III/73.059-4/2002.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.42% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. The materials contained on this page are for advertising and marketing purposes only and should not in any way be construed, either explicitly or implicitly, directly or indirectly. as investment advice, recommendation or suggestion of an investment strategy with respect to a financial instrument, in any manner whatsoever. You should make sure that you have sufficient time to manage your investments on an active basis. CDF are derivative financial instruments, which price is derived from the price of the underlying asset or contract to which the CFD refers (for example currencies, commodities, indices, equity, etc.). Derivative financial instruments and related markets can be highly volatile. The prices of CFDs and underlying instrument may fluctuate rapidly over wide ranges and may reflect unforeseeable events or changes in conditions, none of which can be controlled by the client or eBrókerház Befektetési Szolgáltató Zrt. Prices quoted or information may vary and change depending on market conditions. When investing in Company’s Products denominated in a currency other than that of the state in which you reside, the return may increase or decrease as a result of currency fluctuations. Any indication of past performance or simulated past performance included in an advertisement is not a reliable indicator of future results. All names, pictures and personal details of people depicted as traders in advertisements concerning past performance are included for presentation purposes only, and are not the actual traders who have made the transaction detailed in the advertisement (actual details are kept for privacy purposes). All opinions expressed by traders are not actual testimonials but rather are depictive of the actual past performance and trading experience. Any trades depicted are selected from past real successful trades and are not reliable indicator of all customers past or future trades.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75,42% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.