Why do we trade CFD?
A CFD is only binding on the future price of a financial product and does not involve its substantive control. In traditional stock trading, you have to be a shareholder before you can enjoy the rights to rises or declines in stock prices. In CFD trading, however, you can enjoy those rights after you have executed the CFD.
When you decide to hold/short a certain stock, your profits or losses come from rises or declines in the price. Neither will you need to nor will you become a shareholder. This is the convenience brought about by trading CFDs: you may trade products in different asset classes through CFDs without opening an account for each asset class.
In recent years, CFDs have become the most popular way for online traders to trade commodities, indices, currencies, and stocks. CFDs allow great flexibility compared to traditional trading, for example, the ability to use margin and leverage, going both long and short, and access to multiple markets.
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.