Contracts for difference (CFD’s) are a leveraged product – which means that you only need to deposit a percentage of the overall position in the market in order to open a trade.
They are a type of derivative product that mimics the price movements of the underlying asset, allowing an investor to either go ‘long’ or ‘short’ (speculate on the rising and falling) on equities, indices, commodities, currencies and treasuries without having to commit as much capital as owning the underlying asset outright.
The difference between where the trade is entered and exited is known as the contract for difference (CFD).
As you are trading on margin and leveraging your total position in the market both profits and losses are magnified, losses can also exceed your initial deposit. Equitrade Capital employs a range of risk management techniques during the life-cycle of a trade to help protect your position.
View CFD’s Factsheet
If you are interested in finding out more or to start the account opening process, please complete the open an account form or contact us and we’ll guide you through the process.