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CFD trading platforms/Difference between forex-cfd

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Hello, friends, recently I found out that there is another kind of trading, and it's cfd trading, however, trying to sort out I found out that these are kind of common things, is it true?
Have you ever tried cfd trading?

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By Clinton Lee
17th Oct 2019 12:48

No, never heard of it. This CFD thing sounds amazing. I bet you even have a link for us coming up in due course! Can I make a lot of money from home?

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By Synenergia
17th Oct 2019 12:52

When you open a CFD position you select the number of CFDs you would like to trade and your profit will rise in line with each point the market moves in your favor.
If you think the price of your chosen market will go up, you click buy and your profits will rise in line with any increase in that price.
However, if the price falls, then you will make a loss for every point it moves against you. For example, if you think the price of oil is going to go up then you could place a buy trade of 5 CFDs at the price of 5325. If the market rose 30 points to 5355 and you closed out your position, you would make a $150 profit, 30 times the 5 contracts that you bought.
However, if the market moves against you and the price of oil falls 30 points to 5295 then you would lose $150.

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By Wanderer
17th Oct 2019 13:00

Thanks for joining the site today to give us the benefit of your insight into a question made by another member who coincidentally also joined today.

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Replying to Synenergia:
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By Clinton Lee
17th Oct 2019 15:01

Thank you for copying and pasting that explanation from the CityIndex site. It saved me having to Google CFDs.

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By bugmenot2
18th Oct 2019 07:19

Although it's the same trading, there are quite a few differences between them. First of all, there are several financial instruments. The CFDs allow you to trade many more instruments than Forex does. Then if Forex is about currencies, CFDs are for many different asset classes - Forex included. Then it's that when trading on Forex, you buy the actual amount of asset, while with CFDs you don't, you just speculate on the price moves. The possibility of using financial leverage. Financial leverage which is also known as leverage or trading on equity refers to the use of debt to acquire additional assets. This means that you speculate with more money than you have. The CFDs are simple and they require some additional knowledge before starting to trade.
Find more about them on https://www.investous.com/international/.

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