What are Forex CFD
What is the first thing that comes to your mind when you hear the word "trading"? - It's probably numbers, constantly changing indices, quotes and profit which is extremely hard to calculate. Another word for it is "complex". And it was, until Forex CFD came to market. You don't have to be an expert in economics to trade profitably in Forex CFD. As it is a form of investing, it is obviously still not a piece of cake - you'll need to spend some time learning how it works and how to make accurate predictions in order to be able to make substantial profit. However, the process itself is much easier than, let's say, Forex.
Most forms of trading imply that an investor is actually buying an asset and his profits or losses depend on the changing value of the asset over various periods of time. In Forex CFD, on the other hand, no real product is bought. Basics of Forex CFD are fairly simple: based on market tendencies and some other factors, a trader makes prediction about movement of prices of various assets, which most commonly are currency pairs, precious metals and stock.
What assets can be traded at Forex CFD
Forex CFD can be traded with various types of assets. Most commonly they are currency pairs, commodities and indices.
How Forex CFD work
One of the reasons Forex CFD have become so popular is the simplicity of the process: there are just two types of predictions that are required: a trader should decide if the price of the chosen asset will increase or decrease. He then chooses how much he wants to invest . A trader profits from the return rate, which is stated before the option starts - that makes the outcome perfectly clear.