What CFD trading platforms are? Transactions on shares of currencies to indices and raw materials became popular through such contracts as CFD. The abbreviation is not as mysterious as it seems. It is also very simple to understand how this affects the investment.
There are such software types of the trading platforms:
- For PC
- For Mac
- For web
- For iPhone
- For Android etc
CFD contracts are subject to a lot of myths and even misinformation, so we decided to start with the basics and clarify what the CFD is, and how the principles of working with these contracts affect investors (for example, you).
Definition of CFD trading platforms
CFD is short for “Contract For Difference”. The CFD contract is simply a contract between some person and the broker, within which either you or the broker decide to pay the difference of the current price of an asset exactly at the actual time of the transaction, and the corresponding price of the same asset fixed at the time of the jurdicial completion of the contract, the completion of the transaction. Confused? In fact, everything is simple. In essence, instead of buying a “real” asset, in hope that its actual price will rise, you invest in raising or lowering the price of your asset.
When executing CFD transactions, it is useless to use leverage, that is, the level of risk is absolutely the same as when making usual “direct” financial transactions. On the Opteck CFD platform, it is actually possible to trade on shares with zero leverage, and for transactions on other assets, the minimum level of leverage is only 1:2.
Opteck CFD: how to pay
Each broker provides its services on a fee basis. There are several ways of paying to the intermediary, in the form of a spread. Spread expresses the difference between the purchase price and the sale price of a certain asset. Fixed and floating spreads operate on Opteck CFD.
Commissions are the other side of the coin. Brokers can take for their work a certain commission, which does not depend on the spread. The commission is subject to each CFD transaction. Before you start working with the broker, be sure to calculate what you will get from such cooperation. If you know the number of commissions for each transaction and can predict your activity in the market, you can calculate how much of the profit you will give to the broker.
So choose really the most comfortable platform to work on the market. No matter what, decide to always remember that the only person capable of earning good money is you.