How does CFD trading work?

In CFD trading, you enter into a contract with a brokerage to exchange the difference in the value of an underlying asset from the time the contract is opened to when it is closed. If the market price moves in your favour, you could realise a profit. If the market moves against you, you will incur a loss. CFD trading is leveraged, involves an initial margin, buy/sell spreads, initial cost, holding costs (rollovers, swaps) etc.

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Risk Warning and Disclaimer

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Be Aware: You can lose all, but not more than the balance of your Trading Account. These products may not be suitable for all clients therefore ensure you understand the risks and seek independent advice. This material does not constitute an offer of, or solicitation for, a transaction in any financial instrument. Fortrade accepts no responsibility for any use that may be made of the information and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk.

The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

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