CFD, or Contract For Difference, means commodities, financial securities and derivative commodities will be settled by difference from trading. Because financial derivatives can reflect the price movement of the underlying assets, they are financial instruments with the same investment effects of holding the underlying assets. In CFD trading, commodities and securities are not settled physically. Clients’ profit/loss is reflected by the difference from buying/selling CFDs.
In addition, there is no fixed place for CFD trading. It is an over-the-counter trading between clients and the counterparty. Therefore, it is also called over-the-counter trading. With CFD, clients can invest in commodities, stocks, stock indexes, bonds and all other fields. CFD trading adopts margin trading system so that clients can more effectively use their investment funds. CFD provides a short selling mechanism. No matter the market goes up or done, there are chances to make profits (there is possibility to lose). Moreover, clients can set a stop loss price to limit risks
Commodities CFD is the trading of Contract for Difference(CFD) based on the commodities like gold, silver and other material. With no actual property of investment, you can trade with liquidating only the difference of the price. "Commodity" has a wide range of investments, including gold, silver and other precious metals, copper and other non-ferrous minerals, crude oil and other energy as well as wheat, soybeans,corn and other crops. These products have widely transaction in the commodity exchanges over the world. As the concern has risen to the limited resource, the size of the transactions has been expanding every year. Moreover, commodities such as gold and crude oil are reported by the news frecuently, and can be said that it is easily establish the investment strategy that suited you after understanding the variation factor of the price change.
Securities CFD can be further divided into spot stock CFD, stock index CFD and securities index futures CFD. Our CFDs, all with stock index futures as underlying assets, is securities index futures CFD. Like futures trading on exchanges, securities index futures CFD trading also has an expiry date. Also with no actual property of investment, you only trade with liquidating the difference of the price.