• Market is open 24/5
• High liquidity
• Lower costs
• More trading capacity thanks to leverage
• Possibility to profit/lose whichever way the market moves (upwards or downwards)
• More chances of limiting risks by the use of stop loss orders and risk management strategies
• CFDs can be more predictable with the study of technical and fundamental analysis
• Trading is available via several trading platforms; desktop, mobile, web.
• Trades can be automated or semi-automatic (EA)

CFDs can be traded based on margin % and are determined by the contract size, leverage, pip value and direction.

For short positions, client opens a trade based on the ‘Bid’ price and closes the position based on the ‘Ask’ price.
For long positions, client opens a trade based on the ‘Ask’ price and closes the position based on the ‘Bid’ price.

Note: Trading of CFDs may involve other fees.

Example:
Microsoft (Symbol: MSFT) contract size: 1,000 shares
Margin requirement: 5%
Account leverage: 1:20

i.e. Client trades 1 lot of MSFT = 1,000 shares
Required margin for 1 lot = 1,000 x 96.85 x 5% = $4,842.59

Client decides to go long on 1 lot of MSFT:

Opening of position based on ‘Ask’ Price: 96.85
Closing of position based on ‘Bid’ Price: 98.85

Difference in price = 98.85 – 96.85 = + 2 x 1,00 = + $2,00

Client decides to go short on 1 lot of MSFT:

Opening of position based on ‘Bid’ Price: 96.85
Closing of position based on ‘Ask’ Price: 98.85

Difference in price = 96.85 – 98.85 = – 2 x 1,00 = – $2,00