What are CFD Stocks - What are CFD Shares

In past the only way to trade shares were physical trading floors, where people were negotiating prices. The situation has changed with the development of Internet, the result of which Internet-based stock exchanges, like NASDAQ, have developed.

What are CFD Shares

There are assets that change with less intensity than currencies, at the same time allowing for a significant income. Moreover, they allow clients to form an effective investment portfolio within which one can work with various instruments.

One of the relatively new means of investment is trading Contracts for Difference (CFD) on stock prices of the largest companies in the world.

Contract For Difference (CFD) – is a financial instrument that allows trading such assets as stocks of large companies, gold, oil, gas and nickel, cacao beans and cotton. This is necessary in order to open a space for private investors to operate in this segment of financial market.

What Are the Main Characteristics of Stock CFD?

The main distinctive characteristic of CFD is that during trading contracts for difference there is no real delivery of the instrument. The trader buys Stock CFDs and afterwards sells them profiting on the price change. The advantage of Stock CDF is that one can make a deal of any volume at any moment, for example, on stocks which is quite difficult to do when one trades “natural” exchange contracts. While trading Stock CDF, depending on the direction of the position, the client’s account is credited or charged the dividend amendment that equals the announced dividend payment.

Company IFC Markets presents its clients beneficial terms for making deals and granting access to trading Stock CFDs. There is an opportunity to open short positions using CDFs. This allows to profit on market falls, as well as hedge risks on long positions. Clients can also use leverage. Low margin requirements allow to enlarge position for 40 times, compared with the own funds.

IFC Markets guarantees its clients the opportunity to buy and sell Stock CFDs for actual market prices that correspond the current market prices on basic assets.

IFC Markets is a leading innovative financial company, offering private and corporate investors wide set of trading and analytical tools. The company provides its clients with Forex and CFD trading through its own-generated trading platform NetTradeX, which is available on PC, iOS, Android and Mobile. The company also offers MT4 platform available on PC, Mac OS, iOS, Android, Mobile and Smartphone. For comparison of the platforms, you can observe the advantages of both.