A Contract for Difference (CFD) is a contract made between a buyer and a seller for a specified product, where one party agrees to pay the other the price difference between the opening and the closing price of the contract.
CFD trading offers investors access to the financial markets, without buying physical/underlying products. Instead, they purchase contracts speculating on future price actions.
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.
With MSMAX, you can trade CFDs on some of the most prominent securities in the U.S., Europe, Australia and Asia. These include, but are not limited to:
CFDs are popular with traders because they offer a low-cost entry into the financial markets. Leverage means that traders only need to invest a fraction of the total cost of the contract themselves, enabling them to potentially generate a greater return. However, leverage cuts both ways, and has the same potential to increase losses, as it does to maximise profits.
Trading CFDs on Indices is more costly than trading the underlying index, while offering equal potential to deliver gains. If a trader has a CFD on a long position and the index appreciates, they could even make a greater profit than an investor holding the physical stock. Similarly, they could also make a greater loss if the price declines.
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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.