The other feature in which CFD’s differ from ordinary shares is the way in which your account adjusts according to the positions which you have open. When you purchase shares the overall value of your shares will go up or down. Example: You have $1,000 worth of Telstra shares, if Telstra increases their price from [...]

Similarly to shares, for buying and selling CFD’s there is a commission/brokerage fee which investors are required to pay for every transaction made. However, dependant on the particular CFD provider, these commission costs can be as low as $10. In addition to these brokerage fees, depending on the position an investor takes out on a [...]

Another feature of a CFD is the feature to allow an investor to take 2 different and opposing positions, depending on the market and the stock itself: To go “Long“ (Buy) or To go “Short“ (Sell) Taking a “long” CFD position means that an investor has a view that the market is rising, and profits [...]

CFD stands for Contract For Difference. A CFD is a financial instrument which mirrors the movements of the underlying share or index. In recent times the use and trading of CFD’s have grown very popular as more and more individual investors learn the benefits, flexibility and the increased cost effectiveness which CFD’s provide. CFD’s give [...]