CFDs on Commodities
Get the competitive edge with quick access to the commodities markets. As a great way to diversify your portfolio, you can choose from popular gas and oil products – and trade on their price movements.
What is a CFD?
CFD stands for ‘Contract for Difference’, which is an arrangement made between two parties, the buyer and the seller, over the price movement of a specific financial product. Essentially, the seller has to pay the buyer the difference between the present value of an asset and its value at the time the contract was made.
Why trade Share CFDs?
By trading Share CFDs, you gain access to the stock market of some of your favourite companies. As an investor, you’re trading on the price movements on shares of a corporation that is trading in the equity market.
In this sense, the trader is not subject to the ownership of the underlying asset, which is one of the most important aspects of trading CFDs. The trader is effectively stress-free of any negative corporate events, including bankruptcy.
MSMAX offers nearly 180 major company shares, including but not limited to:
- Alibaba
- Amazon
- Apple
- Microsoft
- American Express
Low Costs
Trading Share CFDs is a much cheaper option than buying and trading the underlying stock, you do not have the associated costs of accessing trading capabilities, because you are not buying the asset. CFDs offer the trader the same – sometimes even greater – profit opportunities as if they had bought the stock.
This is a double-edged sword however, as the trader can suffer the same amount of losses depending on the price movement of the underlying stock.
Leverage and Margin
With CFDs in general, identical margin requirements apply, regardless of whether you’re going short or long. What’s more, leverage is higher with CFDs than it is with traditional trading, and the margin requirement for Share CFDs often starts from just 3%. Traders will still need to apply proper risk management into their strategies however, because using leverage and margin can potentially amplify losses as well as profits.
© MSMAX online 2019 All Rights Reserved
Legal: MSMAX Global Technology Company Limited is incorporated in St. Vincent & the Grenadines as an International Business Company with the registration number 25457 BC 2019. The objects of the Company are all subject matters not forbidden by International Business Companies (Amendment and Consolidation) Act, Chapter 149 of the Revised Laws of Saint Vincent and Grenadines, 2009, in particular but not exclusively to provide brokerage services in currencies, commodities, indexes, CFDs and leveraged financial instruments.
Risk Warning : Trading Foreign Exchange, CFD, and Equities on margin carries a high level of risk and may not be suitable for all investors. You are advised to carefully consider your investment objectives, level of experience and risk of appetite before deciding to trade. It is possible to sustain a loss of some or all of your investment, therefore you should not invest money that you cannot afford to lose. We advise that you seek professional advice from an independent financial advisor before investing if you have any doubts.
