What is the difference between CFD and forex trading?

In many ways, forex is simply another kind of CFD. The main differences between CFD trading and Forex trading is that CFD trading involves different types of contracts covering a diverse set of markets, such as indices, energy, and metals, whereas Forex offers pure currency trading.

What is a CFD & how does it work?

The value of a CFD does not consider the asset’s underlying value, only the price change between the trade entry and exit. This is accomplished through a contract between client and broker and does not utilize any stock, forex, commodity, or futures exchange .

What types of CFDs are available on fxtm?

CFDs are available across a huge range of markets. With FXTM for example, CFD traders can choose from CFDs on shares, indices, commodities. To find out more about the individual CFDs on offer, you can visit FXTM’s detailed contract specifications page.

Why should you invest in CFDs?

Investing in CFDs allows you to trade the price movements of stock indices, ETFs, and commodity futures. You get all the benefits and risks of owning a security without actually owning it. Using leverage allows investors to put up only a small percentage of the trade amount with a broker.