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Introduction to CFDs
The 'CFD' (Contract for Difference) was developed to allow clients to enjoy all the benefits of owning a stock, Forex, Index or Commodity position without having to physically own the underlying instrument itself. A CFD can be any type of financial instrument including: Shares, Forex, Indices and Commodities.
For example, instead of purchasing 1,000 Microsoft shares from a stockbroker, a client could instead buy a 10 CFDs of Microsoft on the Plus500 trading platform. A $5 per share rise in the price of Microsoft would give the client a $5,000 profit, just as if he had purchased the actual shares that are traded on the exchange. A major difference is that there are no exchange fees and many of the inefficiencies of trading the underlying shares on the exchange are eliminated.
Plus500 can offer CFDs with zero commissions and very attractive margin requirements. CFDs have grown in popularity dramatically over the past few years, and we believe that this will increasingly be the preferred way to trade the financial markets.
The other major benefit of trading a CFD is the fact that the client can trade on margin. CFD trading means clients can trade a full portfolio of shares, indices or commodities without having to tie up large amounts of capital. Using the example above, a client purchasing $50,000 worth of CFD Shares will only be asked for $1,000 margin.
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Editor review: Reviewer, 2009-06-23 10:16:00
The program uses the `CFD` (Contract for Difference). It was developed to allow clients to enjoy all the benefits of owning a stock, Forex, Index or Commodity position without having to physically own the underlying instrument itself. Thus a CFD can be any one of the instruments such as Shares, Forex, Indices and Commodities. For example a customer need not actually buy and own 1,000 Microsoft shares from a stockbroker. He can instead 10 CFDs of Microsoft on the Plus500 trading platform. A $5 per share rise in the price of Microsoft would give the client a $5,000 profit. Exactly as if he had bought the original shares. There are no exchange fees.Many of the inefficiencies of trading the underlying shares on the exchange are also eliminated.
Plus500 offers CFDs with zero commissions. Margin requirements are also very attractive.The other major benefit of trading a CFD is the fact that the client can trade on margin. CFD trading means clients can trade a full portfolio of shares, indices or commodities without having to tie up large amounts of capital. Thus no commissions for buying or selling. You contract for fixed spreads. You can get high leverage. The service will provide advance technical analysis as well as real time streaming quote.You are able to trade in stocks, forex, CFD, oil and many other instruments. Funding of the account can be through credit cards or wire transfer.
Overall: Nice and easy trading tool.
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Visit homepage of Plus500 Trader
Download Plus500 Trader 3.11
Popular search terms related to Plus500 Trader:
financial, free demo, index, stock, exchange, account, share, client, type, microsoft
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