What are forex CFDs?

Forex CFDs are contracts used to trade currency pairs via leverage. The forex market is known to be highly volatile, so traders often choose to trade this asset class using CFDs – as it enables them to speculate on both rising and falling prices.

What is a CFD account?

CFDs – short for contracts for difference – is the method you can use to get exposure to forex with us. When trading with a CFD account, you don’t take ownership of physical currencies. Instead, you’ll use the derivative to speculate on price movements. Forex is always traded in pairs – for example, the euro and the US dollar (EUR/USD).

What is forex & how does it work?

In very simple terms, Forex is a subset of Contracts for Difference (CFDs), where the underlying asset price is only ever currency exchange. Contracts for Difference are speculating on the price change on a much wider array of underlying assets such as commodities, market indexes and energy prices.

How do you calculate profit from a CFD Forex trade?

To calculate the profit or loss earned from a CFD forex trade, you’ll multiply the deal size of your position (the total number of contracts) by the value of each contract. Then, you’ll multiply that figure by the difference in points between the price when you opened the trade and the price when you closed it