CFD History

• In 1970s, equity swap market first appeared;
• In 1980s, became a tool for institutions to hedge securities risk;
• In 1990s, retail exchange market was starting to emerge;
• In 2000, UK launched share CFDs;
• In 2019, 25% of the total amount invested in the London Stock Exchange;

Now, CFDs are very popular all over the world nowadays and have covered many products such as stock, commodity, cryptocurrency and Forex.

CFD Characteristics

Determine the price trends, a simply trading method

Analyze product price changes and profit when you're insightful.

Leveraged trading, amplify trading performance

Trade with 1% of the asset's value, multiply the profit opportunities to 100x.

Trading Advantage

Bi-directional trading, more trading opportunities

Profit in both bullish markets (Prices rise) and bearish markets (Prices fall).

24-hour trading, flexible trading hours

The CFD market crosses different time zones around the world and can be traded at any time.

Long Position Profit Model

Formula:

(Closing Price - Opening Price) × Contract Size × Trading Lot

Example (Spot Gold):

The contract size is 100, opening price 1800, closing price 1850, trade with 0.1 lot, and the profit is $500.

Short Position Profit Model

Formula:

(Opening Price - Closing Price) × Contract Size × Trading Lot

Example (Spot Gold):

The contract size is 100, opening price 2000, closing price 1900, trade with 0.1 lot, and the profit is $1000.

Risk Management

Investment losses are often caused by two factors in financial markets:

1. Hoping to fluke after misjudgement and fail to stop loss in time.

Suggestion: Use the app automatic stop loss and stop loss monitor feature well.

2. A single traded position is too large, and the affordability cannot be fully considered.

Suggestion: Arrange the trading lot reasonably, with a minimum of 0.01 lot.

Investment Cost

The investment cost is only one-tenth of the stock (Stamp Duty FREE), including the following two components:

1. Spread: the spread between long buying price and short selling price.

Example (Spot Gold):

$1800.30 (Long Buying Price) - 1800.00 (Short Selling Price) = $0.30 (Spread)

2. Overnight Interest: This is the financing cost of using leverage, free overnight interest on intraday trading.

Trade 0.1 lot of gold and 1 day overnight interest as low as $0.30.

Trade CFD in 3 Simple steps

1. Register

Through Mobile, E-mail, Google, Apple, Facebook.

2. Deposit

Simply deposit local currency and it will be automatically converted to USD.

3. Start Trading

Invest in global assets with master trader in our community.