Introduction to CFD

CFD or Contract for difference is a contract between two parties, typically described
as the "buyer" and the "seller", which price is typically based on the underlying
asset, for example an equity index, a single stock or commodity futures.
At the end of the contract or when counterparties decide to close position the seller
will pay to the buyer the difference between the current value of an asset and its
value at initiation, if the price of the underlying asset has increased. Alternatively if
the value of the underlying has fallen the difference is negative and the buyer pays
instead to the seller.
What is CFD

THESE INSTRUMENTS GREATLY ENLARGE THE POSSIBILITIES OF
CREATING TRADING STRATEGIES AND DIVERSIFICATIONS OF THE
PORTFOLIO MANAGER BY ACQUIRING NEW PROPERTIES AND
CHARACTERISTICS DUE TO THE NATURE OF EACH ASSET PRICING,
"GOLDEN INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL
AND SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE SIGNALS
FOR OPENING A RISK-BASED BALANCED POSITIONS.
• Acceleration/Deceleration (AC) Oscillator:In effect CFDs are financial derivatives that allow traders to gain exposure on
a variety of assets, allowing take long positions when prices of the
underlying move up and short positions when prices move down. Being tied
to the underlying asset the CFD price moves exactly in the same direction as
the price of the underlying and depends on the same factors. At the same
time, being much more flexible and accessible, CFD trading offers a number
of advantages compared to trading the underlying asset directly.
What is CFD

• Acceleration/Deceleration (AC) Oscillator:CFD (Contract for Difference) is a contract between two parties known as
"buyer" and "seller" who agree on exchanging the difference between
opening and closing prices of the contract.
CFD trading offers a number of advantages over trading the underlying asset
directly. In addition to currencies, contracts for difference provide great
opportunities for traders wishing to gain exposure on different markets.
Enjoy the following benefits of CFD trading:
Enjoy the following benefits of CFD trading:
Why Trade CFDs

• Acceleration/Deceleration (AC) Oscillator:Fast access to many markets and the most liquid assets through one brokerage account,
providing considerable diversification opportunities
Leveraged positions with the use of margin able to enhance profits
Cost reduction due to absence of taxes and hidden commissions
Ability to take long or short side trading without limitation
Ease of trading from anywhere in the world by using a computer and IFC Markets trading
platforms.
Why Trade CFD

• Acceleration/Deceleration (AC) Oscillator:Moreover with IFC Markets there are numerous unique benefits of CFD trading:
More than 80 CFDs on stocks, CFDs on major Equity Indices and commodities
Unique Golden Instruments offered through IFC Markets trading platform
Unique swap/rollover policy, based on free-borrowing concept of non-currency assets
Unique ability of trading continuous CFDs on Indices even after the stock exchange closes
Unique ability of trading continuous CFDs on commodities futures without the need to
follow expiration dates
Combination of these benefits has converted CFDs into a popular investment, speculative
and hedging tool for both retail traders and institutional investments.
Why Trade CFD

• Acceleration/Deceleration (AC) Oscillator:CFD contracts are traded in the most of the developed world. Because of the ability to
trade CFDs on margin those are actually financial instruments that are generally traded by
financial institutions to hedge against ownership on original assets, and by individuals and
retail traders that speculate on its price direction.
CFDs were firstly traded on stocks of the London Stock Exchange in early 1990, initially
available to only institutional traders to hedge their exposure on the underlying share. At
the end of 1990s CFDs were introduced to retail traders and together with the
development in computerized system became very popular.
CFD Markets

• Acceleration/Deceleration (AC) Oscillator:Thanks to low costs, leveraged positions and time saving benefits, CFD trading has been
gaining more and more popularity throughout the past decade. Today the CFD market has
developed a lot since the first CFD contracts and offers huge variety of underlying financial
instruments ranging from stocks, equity indices, and currencies to commodities, bonds and
derivatives.
CFD Markets

• Acceleration/Deceleration (AC) Oscillator:CFDs on Equities, Stock Indices and Commodities, totaling more than one hundred trading
instruments, are now available in the trading platform NetTradeX for all the clients of IFC
Markets. The logic of CFD trading is quiet simple and is very similar to traditional currency
trading. The client can either buy a certain number of CFDs expecting a rise of the
underlying asset or sell CFDs expecting a drop of the underlying asset’s price. Later on an
opposite transaction is made to close position. This is the first very important feature of
CFD trading as profits can be made on both rising and falling markets.
How to Trade CFDs

• Acceleration/Deceleration (AC) Oscillator:CFDs are traded on a margin basis. In other words the client is able to open a position
having deposited only a small portion of a contract’s value depending on his account type
and on the contract’s margin requirements. This is a very important advantage as leverage
can raise profits considerably. However there is also a risk of increasing financial losses in
case of unfavorable price movement of the underlying. This is why traders are required
keep funds to fulfill any unfavorable move against their position and at any time the
margin requirement must be maintained to keep the position open.
How to Trade CFDs

THANKS FOR ATTENTION
BEST REGARDS,
IFC MARKETS

Introduction to CFD

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