CFD trading is one of the most popular ways of trading and has taken the world by storm in the last decade. People from around the world are interested in this method of trading because of how easy they find it. We are one of the many trading platforms that provide you with CFD trading services, but stand apart with our unique features, flexible trading conditions, and other facilities that only we offer our traders. Why should you go with CFD trading when there are so many other ways you can trade assets? Let us help you get a satisfactory answer to that question.
CFD Trading – What It Entails
The first thing that you have to understand about CFD trading is the meaning of the term CFD. CFD stands for contracts for difference. From the explanation of this term, you must have gotten a clear idea that you are talking about contracts, not the assets themselves. That’s true, when you trade CFDs, you are not trading the asset per se. You are only trading a contract that has a certain stipulation stated on it. What’s the stipulation you may ask? That’s a great question and it needs a complete and detailed answer. So, let’s understand that.
When you buy or sell CFDs, you are only exchanging a contract. The contract is that you will buy or sell an asset at the price that’s at the time of the asset’s maturity. This is an important concept for you to understand. What it means is that you are locking the price of the asset and hoping for it to go in the predicted direction. You never give the asset to anyone or no one ever sells you the real asset. You are only looking at the face value of the contract that you are either selling or buying.
So, here is an example. You think the asset ABC will go up in value tomorrow. You are sure of your prediction and so you want to benefit from that movement in the price of the asset. What you do is you buy the contracts with the stipulation that you will sell them back to the buyer at tomorrow’s price. Now, if the price really does move up, you will benefit from your trade because you purchased the same asset ABC at a lower price. If the price moves in the opposite direction, you pay that difference and your trade will end in a loss.
CFDs Don’t Involve Assets
The first thing you have to know about CFDs is that you don’t buy or sell the asset at all. You are only exchanging contracts with other people. You never have the liability to own that asset and keep it with you. In fact, the value of the asset does not matter to you either. The value of the asset only matters to you if you are in ownership of it. On the other hand, when you trade CFDs, you are only concerned with the price.
You Can Start with a Small Deposit
Millions of traders from all parts of the world have become a part of online CFD trading because they can start small. With other types of trading or investment methods, you usually have to spend a lot of money. However, when you have online brokers like Noble Finance, you don’t have to worry about spending a lot of money to start trading. We have provided you with many different trading account options so you can pick the one that easily fits your budget. Our basic trading account can be started as little as $250. With this deposit, we will give you access to all the markets.
Leverages and Tight Spreads
You will also love the fact that when you trade CFDs with Noble Finance, you will have some really great trading conditions available to you. Firstly, we keep our margin requirements really low, giving you the opportunity to enter big trades without maintaining a huge balance in your trading account. You can also use huge leverages on your trades when you trade on our trading platform. With leverages, you can enter big trades even if you don’t have enough funds in your account. The leverages you get on our trading platform can go as high as 1:100.
One Platform for All
Modern traders are all about facilitation and portability. We understand that concern and as a result, you now get trading platforms that you can use from anywhere you want. These trading platforms are designed with your ease in mind. So, when you wish to trade CFDs, you can join our trading platform that you can use from anywhere in the world. The best thing is that you the device you have does not matter for using our web-based trading platform. You can use it on your Android phones, iOS phones, or even Windows computers.
All the financial markets are available to you when you trade CFDs. If you wish to trade forex currency pairs, you can do that on our trading platform. You can even trade commodities, indices, and stocks. The best thing is that you have cryptocurrencies available for trading on our CFD trading platform. From this one platform, you can reach all the financial markets at any time of the day. Along with that, you get some great customer support to help you with all that you need help with as a trader. With us, you have the best chances of growing as a trader.
Pick a trading account and start your CFD trading career with us today.