Contracts for Differences (CFDs) are a kind of trading instrument that allow traders to deal with forex pairs and other trading instruments without actually needing to own the instrument itself. This happens by having a trader and a provider enter into a contract with a certain CFD in a particular price. They then decide when the contract will end, and whether the trader will take long position and expect the price to go up or the short position and expect the price to go down. If the trader is right, he gains based on how much the CFD went in the direction it did. If the trader is wrong, however, he loses based on how much it went in the opposite direction.
There are several brokers that offer CFDs, but one of the most popular choices is Plus500 CFD. They are a broker based in the United Kingdom, with their office in London. They have growing CFD operations, currently offering more than 2000 instruments.
When it comes to the platform, Plus500 CFD trading platform is the highest rated on both Google Play and Apple AppStore. It allows traders to take advantage of the many financial instruments at the disposal of Plus500, as well as its many features, while on the go.
Trading with Plus500 CFD
When you want to start trading Plus500 CFD instruments, just go to their website and make an account. You can start with a demo account or hit the ground running and make some money. You can deposit money in your account using a credit card, bank transfer, PayPal, or Skrill.
Once your account has money, it is just a matter of selecting how much you want to invest in the forex pair or other instrument of your choice. You are encouraged to make the most of the considerable leverage that Plus500 offers. Some instruments have up to 200:1 leverage, giving you much more purchasing power than the amount you put in. This allows you to trade more given a small amount of capital.
There are quite a few ways for you to educate yourself with the fundamentals you need to trade CFDs. Plus500 CFD has its own education tab that has a list of articles. Reading of all of them will give you more than enough information in order to properly start trading intelligently.
However, if you want to have an easier time learning about CFDs, then Plus500 might not have the best tools to learn, as all their educational materials come in the form of straightforward articles.
Other major brokers, namely, iForex, XTrade, and FXCM, all have educational content in the form of videos that will let you sit back, relax, and passively learn about CFDs. They also have much more detailed eBooks, but the videos are sufficient to get a basic understanding.
Still, if you are studious enough, Plus500’s educational materials are enough. Paired with their demo account, and you can be adept enough at CFDs even before you deposit the first of your own money.