Contract for Difference- CFD

Contract for Difference, or CFD for short, are derivative instruments that allow only price expectations to be bought and sold without actually owning assets such as stocks, indices, or commodities.

Stocks, indices, parities, commodities, and bonds can be the source of CFD contracts, which are designed for more flexible and faster transactions with less capital. In transactions with CFD contracts, the asset is not actually traded but only the expected price of the asset is traded.

CFD Contracts

CFD contracts have an expiry date, starting price, expiry date, and expiry price. In CFD products, contracts that are open at maturity are automatically closed. At the end of the contract date, the difference between the price of the product subject to the contract and the starting price is calculated. The difference between the opening and closing of the contract creates the profit or loss according to the direction of the position.

CFD contracts with lower collateral than the underlying asset are attractive in terms of making large-volume transactions with small capital. In fact, the fact that it can create income opportunities of the same size as the underlying asset despite lower collateral is effective in the preference of products.

Advantages of CFD

It is very easy to trade in CFD products in the Forex market, which uses the world’s most advanced infrastructure and technologies. Buying and selling can be done by selecting the desired CFD product on the “CFD” groups tab on the platform. Market movements of the relevant asset can be monitored online during the trading hour. Thus, it can be traded simultaneously with the whole world at instant prices.

• It offers the opportunity to trade in all CFD groups, including bonds, indices, and stocks, on a single trading platform,
• Offers a leverage of up to 1:10 in CFDs regardless of the underlying asset,
• bidirectional operation,
• It provides an online market service open 24 hours, 5 days a week.

CFT in the Crypto World

CFDs, which are signed upon agreement of the buyer and seller on a price, are an investment tool as well as a trade object. Because the increase in the value of the relevant token after a CFD is signed in the crypto money world allows the buyer to buy the token much lower than the current market price. The reverse is also true: if the value of the token decreases, this time the selling party of the CFD makes a profit.