Important Steps Included in Successful CFD Trading
Contracts for difference, or CFDs, are a type of financial instrument. Swaps are contracts that allow the parties to exchange the value created by the fluctuation between the opening and closing prices of a certain financial instrument. The cash price of a share is used in contract for difference trading, and a small commission equal to around 0.1% of the amount of the transaction is charged. By creating a position, the trader needs to put up only 5% of the total value of the shares, allowing him to risk up to 20 times his initial investment.