{"id":15618,"date":"2010-11-20T06:35:07","date_gmt":"2010-11-20T11:35:07","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=15618"},"modified":"2010-11-20T06:35:07","modified_gmt":"2010-11-20T11:35:07","slug":"how-to-begin-trading-cfds","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/11\/20\/how-to-begin-trading-cfds\/","title":{"rendered":"How To Begin Trading CFDs"},"content":{"rendered":"<p>By Edwards Catharine<\/p>\n<p>CFD trading is pretty straightforward in the sense that you purchase at  the top level of the quote when you feel the market is going to rise and  sell at the lowest point of the quote when you believe market is headed  for a fall. CFD or Contract For Difference is an agreement to exchange  difference in value of a share between that time when the agreement is  made and the time when it is terminated. When this difference is  negative, the seller will receive the difference from the buyer but if  the difference is positive, the seller must pay the buyer. It is similar  to conventional trading except that it is more flexible. CFD trading is  also held as more reliable and safe than ordinary share trading and can  guide you in exploiting your investments to the fullest.<\/p>\n<p>How To Trade CFDs:<\/p>\n<p>* You need to make well-researched decision on exactly how to trade  CFDs. CFD trading always begins with the correct choices you can make-  if your choices are uninformed you may be taking a great risk. Research  well about your CFD supplier to find out his commission rates, exit  policies and fees.<\/p>\n<p>* Keep abreast with market reports in order to trade in CFDs to know which the right ones to invest in are.<\/p>\n<p>* Research on the right CFD trading strategy to suit your needs.<\/p>\n<p>Why CFD Trading Is Popular:<\/p>\n<p>* Earning both &#8220;short&#8221; and &#8220;long&#8221; positions which means you can profit from rise and fall in markets. * Engaging in pairs trading to counter market risks and trade on the differences between two stocks.<\/p>\n<p>* Freedom to place orders when market is open or closed &#8211; this gives you  the chance to plan your entry, stop loss and exit the evening before  and the system takes care of the rest.<\/p>\n<p>* CFDs get traded on leverage &#8211; so a trader having a small float can  still make good profit from the stock market through CFD trading.<\/p>\n<p>* Costs are far less when compared to stocks and not subjected to VAT,  stamp duty or other trading-related charges on an exchange.<\/p>\n<p>* CFD trading allows you to automatically set &#8220;buy&#8221; and &#8220;sell&#8221; orders or  even &#8220;stop losses&#8221; so that it takes you lesser time to trade and you  can exit as soon as the stop is hit.<\/p>\n<p>Forex trading happens when you trade currencies from various nations  against each other. A typical example would be buying Euro while selling  US dollar at the same time. Online forex trading has gained popularity  in recent times and today is perhaps one of the biggest global liquid  financial markets.<\/p>\n<h3>About the Author<\/h3>\n<p>Visit <a href=\"http:\/\/www.igmarkets.com.sg\/\" target=\"_new\">http:\/\/www.igmarkets.com.sg<\/a> which is U.K.&#8217;s most popular website as far as <a href=\"http:\/\/www.igmarkets.com.sg\/\" target=\"_new\">CFD trading<\/a> is concerned. IG markets provide a wide range of markets covering stock indices, binaries, <a href=\"http:\/\/www.igmarkets.com.sg\/cfd\/forex.html\" target=\"_new\">forex trading<\/a> options and much more where trading takes place 24 hours even telephonically.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>CFD trading is pretty straightforward in the sense that you purchase at the top level of the quote when you feel the market is going to rise and sell at the lowest point of the quote when you believe market is headed for a fall.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-15618","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/15618","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=15618"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/15618\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=15618"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=15618"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=15618"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}