WHAT ARE CFDs?
CFDs (contracts for difference) are a flexible and highly convenient form of derivative investment that allows investors to trade on the rising or falling asset prices of fast-moving global financial markets – such as forex, stocks, commodities, indices and cryptocurrencies. The basic CFD trading principal is quite simple: Select any asset and choose to go long (BUY) if you predict the market price will rise, or go short (SELL) if you predict the market price will fall. Making a profit is possible either ways, whether it’s an up trend or a down trend movement.
With CFD trading, you don’t actually buy or sell any underlying assets. What you do is simply buy or sell a number of units for a particular financial instrument, depending on whether you think that its price will go up or down. When trading CFDs, you have the benefit of using leverage (up to x200 with the PHOENIX BROKAGE platform). Consequently, you can start your trading with a very small percentage of the total value of your trade and magnify your returns – no commissions or hidden fees involved.
As opposed to options or future contracts, CFDs do not have an expiry date and they are effectively renewed at the close of each trading day and rolled forward. Therefore, it is always a good idea to use a combination of fundamental analysis and technical analysis tools before deciding to enter a position. PHOENIX BROKAGE traders can enter into leveraged contracts on over 1,000 of the world’s top-class assets by opening a position at a specific price with complete transparency using our ground-breaking technology.
Why trade CFDs?
CFDs are the ideal option for many investors as you are not required to physically own the financial asset in question and therefore you can gain major investment exposure. CFDs are known to be quick and accessible, removing the need to trade through a stockbroker.
Because you are trading on margin, CFDs can enhance the return on your investment capital. What this means is that when you trade CFDs, you don’t have to put up the full value of the asset you are trading on.
Instead, you only need a small fraction of the total position value to open it and maintain the same level of exposure. By trading CFDs, you are able to gain access to all 5 major markets from the comfort of your home and significantly increase your profit opportunities when you open positions on various classes of financial assets.
You are interested in following the performance of gold and both your fundamental and technical analysis suggests that the price is about to drop.
You decide to open a $200 SELL position on gold (10 ounces) at $1,000 an ounce (the bid price) using x100 leverage to increase your market exposure.
10 x $1,000 = $10,000
Gold then drops $30 in value. You manually close the position and earn:
$30 x 10 (ounces) = $300
Your profit is $300
What are the main advantages of
trading CFDs with PHOENIX BROKAGE
PHOENIX BROKAGE CFD trading is easily accessible, quick, secured and convenient. Even though there is a variety of different reasons as to why someone might want or need to participate in this type of market, our competitive fixed spreads help to reduce the cost of investing to a minimum while allowing you to fully understand the overall investment process.
It is also commission free and we don’t take any hidden charges or fees from
you throughout your trading experience.
The power of leverage
Maximize your trading with up to 200:1 leverage on our award-winning trading platform
You can profit from any upward or downward trend by opening either a “BUY” or a “SELL” position
Effective Risk Management
Apply Stop Loss, Take Profit and Order Entry tools on every trade you open and enjoy the freedom of leaving open positions running
Continually volatile market
This market’s exceptional liquidity ensures reliable pricing even at very high volumes, so you can take advantage of the tightest possible spreads
Quick and convenient deposits and withdrawals
Enjoy hassle-free, secured and convenient methods for transferring and withdrawing funds
Who can trade CFDs?
Needless to say, anyone who is looking to get involved in buying and selling financial assets online can trade CFDs. CFDs trading is considered as one of the most active and dynamic ways to trade the financial markets and at the center of it is the basic principle of fluctuations in financial assets’ values which drives everything else.
Thanks to PHOENIX BROKAGE intuitive platform, it is very convenient to take part in this type of derivative trading and there is no need for any previous knowledge or experience in order to get started.
- Ground-breaking platform
- Unlimited FX market access
- No commissions or hidden fees
- Fixed-tight spreads
- 100% safe and secured
- 24/6 Dedicated support