Contract for difference, commonly known as CFD is a contract between the buyer and the seller, describing that the buyer will pay the seller the difference between an asset’s current values then the buyer pays instead to the seller. It should be noted that the difference must be negative for the contract to be effected. Such contracts are financial derivatives thus allowing traders to take advantage of prices moving up and down.
There are various risks associated with contracts for difference. Let’s highlight some of these problems and possible solutions. One of the leading companies that’s in a better position to deal with such contracts is CMC markets.
Trading with leverage can be a good way of stretching your capital. As a forex trader, you can leverage funds available in your account and possibly generate larger funds in relations to …