CFD
CFD's
The key advantage of a CFD (Contract For Difference) is the opportunity to speculate on the price movements of an asset (upwards or downwards) without actually owning the underlying asset.
Display
Name/Symbol | Minimum Spreads | Min/Max Trade Size | Margin Required | Long Swap Value** | Short Swap Value** | Limit & Stop Levels |
---|---|---|---|---|---|---|
Amazon
|
14 | 1/9 | 5% | -3.96 | -3.7 | 20 |
Google
|
14 | 5% | 5% | -3.96 | -3.7 | 20 |
* Swap rates are calculated according to the stock currency’s relevant interbank rate. In the table above the swap values are indicative of the annual percentage. Long positions are charged with the relevant interbank rate plus a mark-up, and short positions receive the rate minus a mark-up. The operation is conducted at 00:00 GMT+2 time zone (note that DST may apply), and can take several minutes. From Wednesday to Thursday swap is charged for three days.
** Min. level for placing pending orders at a current market price.
Every third Friday of the month, the trading hours of Greek stocks will have a break between 13:44 and 14:01 GMT+2 time zone (note that DST may apply).
CFD stocks are not physical shares and are not subject to any voting rights.
When a corporate action occurs, a price adjustment may be applied to eliminate the impact on clients’ trading accounts.
Margin requirements may be subject to change before earnings announcements and/or any corporate action.
The average spreads shown here are calculated throughout the day. Spreads to be narrower under normal market conditions, but they may widen following important news announcements, during political uncertainty, unexpected events leading to volatile market conditions, or at the close of the business day and on weekends when liquidity is lower. When you trade with us, FxBulls is your counter-party. Your trades are matched and any next exposure above predefined thresholds is hedged with our partner banks (our liquidity providers) at the current market spreads. However, during volatile and illiquid market conditions our liquidity providers quote spreads larger than normal. At such times, FxBulls is forced to pass on some of the spread increases to its clients.
The margin is always 50% when you hedge positions on CFDs and if your margin level is over 100%.
The margin requirement for CFDs is calculated like this : Lots * Contract Size * Opening Price * Margin Percentage and not based on the leverage of your trading account.
Calendar dates are indicative and are subject to change.
Advantages of CFD trading with FXBulls
The main benefits for traders to note
Build up your trading skills
Get acquainted with the basics of trading through an easy-to-understand and comprehensive video tutorials collection, from beginner lessons to advanced trading strategies designed with you in mind.
How to Trade CFDs?
Get started with trading CFDs and Forex by watching this introductory video
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Investing and Trading in CFDs
Popularity in CFDs has been growing because it takes into account the price change from one price to the other, without its value. This is done through a contract between client and broker, and doesn't involve an exchange point.
What is CFDs?
A CFD (or Contract For Difference) is a contract that allows traders to speculate on the value of an underlying asset, similar to transactions seen in traditional share trading.
Gains or losses are determined by the difference between the asset’s value at the open and close of the contract and then multiplied by the quantity of CFDs bought or sold. Essentially, CFDs provide a vehicle for investors to benefit from potential price movements without taking physical possession of that asset.
How do I begin trading CFDs?
Getting started with CFDs is relatively easy but, whenever a risk is involved, new traders should take the time to research the potential advantages and drawbacks that will inevitably be experienced once real money is committed to the market. This should not be considered discouraging but, as with other forms of speculation, the risks should be understood before opening and funding a CFD account.
There are many different CFD providers now and you have a wide variety of available options tailored to your individual needs. We recommend you start with a CFD demo account, which simulates live trading conditions but does not risk real money. Once your strategies have been tested and you feel comfortable risking real money, you can start with a funded live CFD account.
CFD trading with FXBulls
With FXBulls you can choose your own base currency for your account. Individual CFD trades are then made in the currency of the underlying market and subsequently converted to your base currency, if necessary. For instance, if your base currency is pound sterling and you are trading a US equity, your margin requirement and your profit/loss will be calculated in dollars and then converted into sterling on your account.