What Are CFDs? CFD Trading Explained For Beginners
What are CFDs? Contract For Differences is a way to basically "bet" on the price movement of a product, you can trade CFDs or stocks, commodities, indices, forex and more. You don't own or trade the underlying product in any way, you simply trade on the price movement of that product, which is why CFDs are known as derivatives.
Trading CFDs is very risky because CFD brokers usually give leverage to traders, however CFDs allow for easy, liquid and low cost trade of many products that would otherwise be quite difficult to trade on.
CFDs are traded in units, which sometimes correspond to the price of the underlying, but not always.
MoneyZG is a channel about personal investing, trading shares, the stock market and making money online. Videos are not financial advice and are for entertainment purposes only.
Пікірлер: 51
Amazing explanation.. finally I understand the really basic details behind CFDs. Thank you!
Very good video, well explained straight to the point!
Great video and well explained
that was brilliant - thank you
Well explained Sir
Really well explained, thank you. Question, please excuse my ignorance, but what happens if BitCoin gets SEC approval for ETF? I mean, Bitcoin is going to soar, won't everyone just take out a long position on CFD on BTC? Or will the broker halt CFD trading if something like that happens? Seems like if everyone bets on the horse that's absolutely going to win - then the bookies going to lose a lot of money.
Thank you for this video, spider-man
Sounds similar to spread betting, can you explain the difference? I am confused and would love to see an example between CFD, binary trading and spread betting. 😊
Tom Holland 😂
@BlkBoi2005
5 ай бұрын
Exactly what I was thinking 😂
@bluewhalegame989
5 ай бұрын
Yes 😂😂
@Heisenberg2K
4 ай бұрын
Shut up amateurs
@madilm0505
Ай бұрын
Its actually his relative
Isn't this very similar to, if not the same as, regular options (puts and calls)?
@chashdeveloper
11 ай бұрын
Option has premium but CFD dont
@dralshaer85
9 ай бұрын
What you mean premium? CFD means gambling exactly, is it?
So cfds are a form of derivative, that is they represent a underlying asset. In your example it would be Netflix shares.
Should have mentioned the Swap points, that's pretty important and can very easily surprise a newcomer to the CFDs
I have lost a fortune in stocks, amc , tesla etc.. ive been doing cfd trading on indices, i dont seam to loose much , , i bought German40 £1000 sold am hour later made £400, kept doing this and made 9k in a week. I also thought you got penalties for holing over night etc , on 212 this doesn't seam the case.. am i missing something
@oldfaithfuliii5997
8 ай бұрын
All over night fees should be shown once you open up a CFD trade in the edit section where you set stop losses etc , trading derivatives as far as I’m aware may or may not charge fees as mine don’t but i mainly concentrate on commodity CFDs
@marcusr3795
5 ай бұрын
What were the fees like ?
@peaceofmindofpeace1650
2 ай бұрын
Wow. I recently tried CFD and made 340 euro's out of 100 euro's! I'm now more into this. I lost much money too with regular shares. I earned well with stable ETF's thoogh. I now only keep my long term ETF's, crypto and I focus on options and CFD.
just a quick question do you have to trade CFD's with leverage or can you do it more like shares where you just put in what you have?
@markonovakov4680
2 ай бұрын
I'm wondering the same thing. Have you found out?
@canerc6668
2 ай бұрын
@@markonovakov4680 You don't have to it is up to you. But most people risk it and lose money eventually. That's why brokers offer this. 😊
@peaceofmindofpeace1650
2 ай бұрын
In my experience, it's usually with leverage and a marge to protect yourself. I'm using a platform which offees cfd with leverage. What's strange is, I can't find the option to adjust the leverage to 2, 3 or more times
If you don't use leverage, isn't the similar to normal stocks? Other than the fact you don't own the stock?
@oldfaithfuliii5997
8 ай бұрын
I trade commodities because there always moving up and down , never use leverage greater then x 10 and remember to set stop loss on every position, work out the monthly price range and even place orders to open at certain prices . Remember any profit is good profit . Do Not Get Greedy otherwise it will cost you , good luck I hope you achieve life changing wealth
So are these just another name for Futures?
@PedramGhassemi
3 ай бұрын
I have the same question
does a cfd stock pay dividends?
@Multrakiller
11 ай бұрын
my CFD for ETFs actually paid dividends in SAXO, but consider the rate at which you pay interest for holding CFD long term..
Just curious, how do you sell something which you do not own?
@tills7
Жыл бұрын
you borrow it
@differentbreed2962
Жыл бұрын
U just borrow it off the broker and then buy it back at a lower price and keep the difference.
@xian3796
Жыл бұрын
It is referring to shortselling
@abdelkhalkerrifi9497
8 ай бұрын
In cfds you dont buy and sell any product all you do IS making contract with your broker it is like gambling
@buravan1512
2 ай бұрын
exactly, and i hate gambling. @@abdelkhalkerrifi9497
What happens if you don't repay the money a CFD company loaned you?
@salihayvaz58
2 жыл бұрын
Did you get an answer? I need info on that too .
@rombusworkmoney22
2 жыл бұрын
@@salihayvaz58 as you can see, I haven't gotten an answer.
@wabbalubbadubdub9713
Жыл бұрын
lul
@kebab-case
Жыл бұрын
They can sue you but more likely they will sell your debt to a debt collector which will try to get the money you owe in various ways.
@emiliosalazar1031
Жыл бұрын
usually you cant owe money to the broker, they close up positions when your balance is reaching the total of the money you have in the account i think this is called margin calls
bro looks like peter parker
So its glorified gambling...
@raygyl9662
8 ай бұрын
What do you think trading is? Its the biggest legal worldwide betting place
Just another short fraud.