Contracts for difference (CFDs)
CFDs are a form of financial instrument for those investors interested in trading major stocks, indices and commodities. A CFD, is an investment instrument used by investors to capitalise on their market forecasts and views. It is a very simple type of derivative that attempts to replicate the trading specification, and therefore, economic performance of an underlying product without the complexity of trading physical goods.
By definition a CFD is an agreement between two parties (the investor and CFD provider) to exchange the price difference between the opening and closing price of a contract. CFDs are derivative products that allow investors to make assessments on both the rising and falling markets and trade on leverage.
TeleTrade brings you the facility to trade numerous markets without committing substantial capital outlay. Offering the benefit of this significant leverage, you can take advantage of our facilities to trade a number of stocks, indices, commodities and futures. Just like physical trading your profit or loss is determined by the difference between the price you buy at and the price you sell at.
Unlike the situation commonly found in physical trading, CFDs offer the flexibility to sell a product short. This is particularly favoured on individual stocks and indices where traditionally a short-selling strategy is often expensive and complicated. Trading CFDs however is extremely straightforward, the process reflecting a purchase or sale of the underlying instrument.
CFD Trading is unique because of :
- Potentially profit on both rising and falling markets
- Get full exposure for a fraction of the full contract value
- Manage your risk with a range of stops
- Get direct market access (DMA)
Gold and silver are the most popular in precious metals trading market, both against inflation and have investment value. Precious Metals trading is done similarly to forex currency trading where investors take short or long positions of the metals’prices. TeleTrade provides the best-of-market spreads and execution without having additional foreign exchange exposure. You can conduct instant precious metal trading through TeleTrade MT4 trading platform 24 hours a day.
Unlike most commodities, the price of gold is not determined by the production volume and consumption levels. Because so far most of the gold mining are still continue and gold can be re-enter to the market. Therefore, the price of gold tends to be swayed by political events, become a hedging tool for turbulent times.
Silver as a precious metal, used in large-scale industrial production of jewelry and silverware. Because of its irreplaceable characteristics, the price of silver is more volatile compared to many other metals.
Stock Indices offer a diversified way to trade the movements of global equity markets. Indices can be used as hedging instruments by trading and Index short while being invested long in a group of equity stocks that trade in the same market. Alternatively many traders speculate on indices to the long side as well. The ability to buy or sell any index is one of the primary attractions of Index CFD traders. The highly liquid, and easy tradability, of indices make these instruments the perfect tool for a wide range of trading strategies.TeleTrade offers over a dozen stock indices allowing traders can go short or go long all the main indexes in the world through GCG’s platform like NIKKEI, FTSE and DAX.