Every week, we share expert insights into popular assets and answer the most frequently asked investment questions, helping you understand the financial markets in bite-sized pieces.
In this edition of Markets in Focus, we dive into CFD trading, a versatile way to trade multiple asset classes and manage your investment strategy.
What is CFD Trading?
CFD (Contract for Difference) trading is a financial instrument that allows investors to profit from the rise or fall of asset prices without owning the underlying asset. CFDs can be used to trade stocks, indices, cryptocurrencies, commodities, and currencies.
With CFD trading on Change, you can speculate on price movements, take long or short positions, and even use leverage to potentially increase returns.
How CFD Trading Works
When you open a CFD trade, you enter a contract with Change as your broker. Your profit or loss depends on the difference between the opening and closing prices of the chosen asset.
Example:
- Without leverage: Buy €100 of Apple CFD at $170. If the price rises to $200, your profit is $30.
- With 5× leverage: Your €100 position is effectively €500. The same 2% price movement would amplify your gains (or losses) fivefold.
Remember: CFD trading with leverage increases both profit potential and risk. Always trade responsibly and understand the risks involved.
Why Trade CFDs on Change?
Change offers a secure, intuitive platform for CFD trading across multiple asset classes. Key benefits include:
- Trade stocks, crypto, commodities, and indices from one app
- Use leverage to maximize trading opportunities
- Access real-time market data and advanced charting tools
- Benefit from educational resources to make informed trading decisions
History of CFDs
CFDs were invented in England in 1990 by UBS bankers Jon Wood and Brian Keelan. Initially designed for hedge funds to trade London Stock Exchange shares without owning them, CFDs are now widely used by retail investors globally.
Get Started with CFD Trading
Explore the full potential of CFD trading on Change. Start trading stocks, crypto, commodities, and indices today, all in one convenient investment app.
Download the Change app and start trading CFDs with confidence!
