What Is CFD Traiding Online
Compare the platforms and spreads for these CFD trading accounts and find one that could help you make a profit from the rise or fall in the markets. Absolutely sick of CMC’s spiking of forex trades, super widening of spreads to well over 10x, sometimes over 20x their advertised normal spread sizes, stop hunting, and closing out trades well outside of the high/low buy/sell and platform spread prices at the time.
Around 2001 a number of the CFD providers realized that CFDs had the same economic effect as financial spread betting in the UK except that spread betting profits were exempt from Capital Gains Tax Most CFD providers launched financial spread betting operations in parallel to their CFD offering.
The term ‘CFD’ which stands for ‘contract for difference’ consists of an agreement (contract) to exchange the difference in value of a particular currency, commodity share or index between the time at which a contract is opened and the time at which it is closed.
At City Index, we offer CFDs on thousands of individual markets including shares, indices, currencies, commodities, interest rates and bonds, allowing you instant exposure to major global markets including the UK, US, Europe, Asia, Australia and New Zealand.
When a CFD trade is executed at a given price, the DMA broker effectively plays no role whatsoever – the trade is placed in the real-life markets directly, and must be met by a corresponding trade on the other side of the table in order to be fulfilled.