CFD Trading
Almost every trader over time begins to look closely at this type of trading as CFD trading on Forex. Interest in CFD contracts is usually caused by high volatility compared to currency pairs and the long-term duration of trends, which gives the trader the opportunity to potentially high income from CFD transactions. In addition, CFD trading allows you to diversify your investment portfolio, redistributing risks, and increasing the profitability of trading systems… In this regard, many participants in the foreign exchange market are looking for answers to the following questions: "What is CFD?", "What are the advantages of CFD contracts in relation to trading on the stock exchange?", "How to use this financial instrument in trading?" In this article, we will try to give answers to these and other questions, as well as tell you with an example of how you can make money using this trading tool in your strategy.

What are CFDs?
CFD is a price difference contract concluded between a buyer and a seller through a broker, for example, Forex Club, reviews of which can be read on an independent website. CFDs include stocks, bonds, stock indices, interest rates, commodities, and currencies. To make it easier to understand what CFD is, let's consider a specific situation using an example. Let's say a trader bought a CFD on Russian shares of OAO Gazprom, and the contract volume was 30 shares at a price of $ 285, that is, $ 8,550. Two days later, the price rose slightly to $ 315 per share. The trader decided to sell the contract, the total value of which at that time was $ 9,450. As a result, the profit from the transaction was $ 900 minus a small commission that the broker will take for transferring the position. As you can see, CFD trading strategies for beginners practically does not differ from trading currency pairs, except for special margin requirements and special commissions charged by the broker.