Business and Finance Analysis

A CFD (or Contract for Difference) is simply an agreement that exchanges the difference in the value of a financial instrument at the time of opening and closing.

Flexibility and transparency

For example, when operating CFDs on stocks, you trade the market price of the Action, and paid a commission which is calculated as a percentage of the value of the transaction. Our commitment to Spanish and European shares is only 0.1% (see Contract Information).

However, when you open a position does not have to enter the total value of the Shares, but you make a deposit, from 5% in the case of Spanish and European shares. This means that you can trade worth 20 times its initial capital.

When you decide to close the position, is settled the difference between the price at the time of opening and closing. As in the conventional trading Stock Futures, the extent to which you are able to anticipate market trends mark how much you can gain by trading CFDs.

Leveraged products like CFDs can help you make more effective use of their capital, but it is important to take into account the amount you could lose, which is greater than the risk in other products without leverage.

Long or short positions

With CFDs you can buy or sell at the quoted price and, therefore, benefit from both bull and bear markets. Other methods to be short in shares are often more costly and less transparent. See an example of CFDs bassist position.

Miles Market

CFDs allow you to trade in a range of financial products extremely broad, which means offering a way to operate with ease on different markets.

For example, if you are interested in Stocks, Ibex35 level, oil prices and exchange rates in Europe, can operate on all these markets with a single vendor and a single account.

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