Contract for Difference (CFD)

This is a conditional agreement between the trader and brokerage company that income from successful market transaction will be paid to the trading account, and if the transaction fails, the trader will suffer losses. We usually speak about CFD in the context of shares. In fact, you do not buy the shares as a security and can not take part in any voting or shareholder meetings. You just trade using the changing quotations in your terminal. You find the desired stock notation (ticker - see) to the left of the price chart in the "Symbol" window and open a transaction to buy or sell at the price that you can now see, using "New Order." Close the deal when you have managed to capitalise onthe change in share prices.

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