CFDs

What are CFDs?

A CFD (Contract for Difference) is an agreement which is concluded between a buyer and a seller stating that the seller will pay the buyer the difference between the value of an asset at the time the agreement was entered and its value at the moment. CFDs have become very popular amongst the traders.

BronzeMarkets offers you a wide array of CFDs to choose from.

On the basis of the operation of CFDs, many investors use it as a way to hedge their existing portfolios through periods of short-term volatility. If you have a long-term portfolio you want to keep, there may be a short-term risk to the profit of your investments. You can use CFD contracts to reduce a short-term loss by hedging your position.

When your portfolio decreases in value, the profit you earn on CFD contracts could help you balance out those losses. So you control your wallet without causing a big loss.

What are the advantages of trading CFDs?
Have the ability to take both long-term and short-term positions.

You can trade on the price of a product going down as well as it going up. That’s how a CFD works.

You can benefit from a bear market by selling and likewise from a bull market by buying.

Margin requirements for CFDs are relatively small.

Guarantees of immediate execution; therefore, your transaction will be fast and efficient.

Why trade CFDs with BronzeMarkets?

BronzeMarkets provides three trading platforms which will allow to trade online easily, from any device, including MetaTrader 5, Mobile trader and Web Trader.

You'll get the best performance, stay up to date on market news and apply the CFD trading strategies of your choice.

Trade the following CFDs with BronzeMarkets
METALS
COMMODITIES
INDICES

Gold (spot)

Crude oil (spot)

S&P 500, Dow Jones 30, USTECH100 (NASDAQ)

Silver (spot)

Brent crude oil (spot)

DAX
Palladium

Natural Gas

CAC 40, EUROPE50 (Eurostoxx), FTSE100

Platinum
-

JAPAN 225 (NIKKEI)

-
-
AUS200
-
-
HONGKONG50

In-depth analysis on Contracts For Differences (CFD) trading

There are many reliable strategies that traders can use when choosing CFD trading. BronzeMarkets will guide you through the many benefits CFD's had to offer and much more.

What is Contracts For Differences trading?

CFD trading, or contract for difference trading, allows you to trade on the instrument's movement, not the instrument itself. CFD offers a unique advantage - you can earn money both at a increase and decrease the price, that is, if you have predicted correctly and bought accordingly.

If you think that is forthcoming increase in the price of the underlying instrument, you go “long” and buy. This allows you to make a profit on the future gain. If you think the price will fall, you go ‘short’, and when the price falls, you will still gain from the precise prediction.

CFD trading offers a different approach to trading, because you can sell unsecured securities - "short". The gains/ losses will depend on how reasonably and accurately you predict the movements, the of your lot (‘position’) and how considerable the market movement actually is.

CFD trading is quite similar to the Forex market, if you have experience in that field. Many brokers and trading platforms also allow leveraged buy-out of CFDs, a CFD strategy that can pay off very well if used correctly

What markets can you trade CFDs on?

You can trade CFDs on the following markets:

Forex
Commodities
Shares
ETFs
Indices

In general, CFD trading operates the same way on any of the above platforms, although it doesn't replace getting familiar with each and every platform is important because they all have some differences.

The Advantages of CFDs Trading

One of the main advantages of CFD trading, and the reason why it's becoming so popular, is that you can gain profit both if the market goes down as well as when it goes up. You can sell unsecured securitiesand still make a profit.

CFD trading also allows you to use leverage, i.e. entering the market for only a fraction of the cost of the actual transaction.

The lack of a fixed lot and convenience also cause many traders to choose CFD trading. As you do not own the actual commodity, the risk is significantly reduced.

As with most financial strategies, trading with CFDs offers a favourable opportunity for portfolio diversification, which is always good.

Excited? Test your CFD strategies and start trading CFDs with BronzeMarkets today!

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