CFD trading | CFD meaning | What Is CFD | CFD Online | IFCM New Zealand

What Is CFD Trading

CFD (Contract for Difference) is a contract between two parties known as "buyer" and "seller" to exchange the difference between opening and closing prices of the contract. The popularity of the instrument mainly stems of a simple fact that investors do not have to obtain the physical assets for trading them. Observations have proven that significant number of traders prefer CFD trading over other financial instruments.

Benefits of CFD Trading

  • No ownership of the actual underlying asset
  • Leveraged Trading
  • Fast access to a variety of markets
  • Low transaction costs and No hidden commissions
  • Profit from both rising and falling markets
  • Ability to trade through online trading platforms on various devices

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Learn more about CFD Trading

  • What is CFD

    Thus, What are CFDs? CFDs are derivative financial instruments by their nature that provide traders with an opportunity to make profit on price movements of various assets, allowing opening long positions when the asset prices go up and short positions, when the prices go down. The CFD value linked to the underlying asset moves in the same direction as the price of the underlying asset and depends on the same factors. At the same time being much more flexible and accessible, contracts for difference present a number of advantages, such as low cost, trading with leverage and market diversification, compared to trading the underlying asset directly.

  • Why Trade CFDs

    CFD (Contract for Difference) is a contract between two parties known as "buyer" and "seller", the price of which is based on the base asset, for example an index, stock or commodity future.

  • CFD Markets

    Today the CFD market has developed a lot since the first CFDs and offers huge variety of underlying financial instruments ranging from stocks, equity indices and currencies to commodities, bonds and derivatives.

  • Trade CFDs Online – How to Trade Stocks

    CFDs allow to trade the price movements of global markets and hedge physical portfolios against potential loss of value.

  • Synthetic Futures Contracts (Continuous Futures CFDs)

    Recently, along with trading in the foreign exchange market, a growing number of clients are interested in making profits by trading Index, Commodity and Stock CFDs. IFC Markets, being one of the leading providers of CFD trading, has developed a special instrument (CFD type), having the form of continuous futures contract that allows clients to trade without an expiration date. This is a significant advantage compared to trading futures with dates of expiration.

  • Gold Instruments

    In contrast to traditional gold trading, quoted against the US dollar or the euro, this group includes the following unique instruments, in which gold is quoted against other assets:

  • Single trading account for trading currency pairs, stocks, commodities, etc.

    A single trading account is a set of brokerage services that allow a client to trade on multiple segments of the financial market using only one single account.

CFD Trading Tutorial

With CFD trading, investors get an opportunity to try themselves in various segments of the financial market. Leran the basics of trading CFDs with an example of a CFD trading deal.

Download CFD Tutorial