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What is
CFD trading
and How it works

Definition of CFD trading

CFD trading involves buying and selling Contracts for Difference (CFDs) which allow you to speculate on the price changes of various assets including shares, indices, commodities, forex and more. CFDs provide you with the opportunity to participate in the global financial markets and gain exposure to price fluctuations without owning the asset.
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All trading involves risk. It is possible to lose all your capital.

The mechanics behind CFD trading

A CFD is a contract between a CFD broker and a trader to exchange the value difference of an underlying asset from the beginning of the contract to its end, which is frequently shorter than one day.
To initiate a CFD position, you will need to select the trade size. Profits will potentially increase with favourable market movements, but losses can occur if the market moves against you. CFDs mirror the underlying market, allowing profits from price increases or market drops.

Why choose CFD Trading?

Go long or short
When you trade CFDs, you “buy” (go long) if you believe the asset’s price will increase and “sell” (go short) if you believe the price will decrease. The outcome of your speculative position will determine whether you generate profit or not. Both choices can result in losses, therefore you should ensure you understand how CFDs operate and take risk management measures.
Mimicking the underlying asset
CFDs behave in a similar manner to their underlying market, so they are basically intended to closely resemble trading on each underlying market. Only the changes of the underlying market affect CFD pricing. As a result, in addition to mimicking a standard trade that generates profit when market prices rise, you may also open a CFD position that generates profit when the underlying market price falls.
Use of leverage
With the use of leverage in CFD trading, you have full market exposure for a small initial deposit. In other words, to get exposure to the whole value of the trade, you only need to put up a portion of the position’s cost as a margin. Keep in mind that the potential gains and losses will be magnified since they will be determined based on the whole size of your position, not simply the margin.

Mastering CFD trading in 6 steps

one
Learn
what CFDs are & how they work
two
Register
for a CFD trading account & fund it
three
Select
your favourite market
four
Decide
whether to purchase or sell
five
Use
stop & limit orders
six
Keep an eye
on your trade & close it
Previous
Next
Learn
what CFDs are & how they work
Register
for a CFD trading account & fund it
Select
your favourite market
Decide
whether to purchase or sell
Use
stop & limit orders
Keep an eye
on your trade & close it
Trade CFDs now
All trading involves risk. It is possible to lose all your capital.

T4Trade, with registered address of F20, 1st Floor, Eden Plaza, Eden Island, Seychelles, is a trade name of Tradeco Limited.

The Group includes Damadah Holding Limited with registered address at 365, Agiou Andreou, Efstathiou Court, 2nd Floor, Flat 201, 3035 Limassol, Cyprus.

Tradeco Limited is authorised and regulated by the Seychelles Financial Services Authority with licence number SD029.

Risk Warning:
Our products are traded on margin and carry a high level of risk and it is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved.

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Risk Warning: Our products are traded on margin and carry a high level of risk and it is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved.
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This website is not directed at UK residents and falls outside the European and MiFID II regulatory framework, as well as the rules, guidance and protections set out in the UK Financial Conduct Authority Handbook.

Please click below if you wish to continue to T4Trade anyway.

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