What is the difference between CFD and Forex?

While CFD and Forex are similar there are slight differences. The main difference is that CFD in Forex does not have expiring date on open order. Trading CFDs on Forex is same as trading Forex currency pairs so you should not have any problems.

What are the benefits of CFD trading?

One of the benefits of CFD trading is that you can speculate on the asset’s price movements in either direction. You buy or sell a contract depending on whether you believe the asset’s price will go up or down, opening a long or a short trade, accordingly.

What is the difference between CFD trading and investing in stocks or funds?

CFD trading is a way of speculating on financial assets, like share dealing or ETF investing. However, CFD trading is a little bit different – because unlike investing in funds or stocks, you never own the underlying market. Instead, you buy or sell a contract for difference (or CFD for short). CFDs mirror the live prices of financial markets.

What are the risks of trading CFDs?

Using leverage in Forex CFDs can present both massive opportunity and risk. Your profit and loss are still calculated on the full size of your position. While you can make huge profits with CFD trades, you can also make huge losses that exceed your capital.