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Trading Volatile Markets: Learn about CFD trading with CMC Markets

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Although the year 2022 was marked by multiple crises: inflation, the war in Ukraine, and shortages; Today there are still opportunities for traders to consider in the financial markets. The latter can then rely on the expertise of CMC Markets, the CFD trading specialist.

CFDs – the English abbreviation for “contract for difference” which can be translated into French as “the difference between the difference” – are speculative financial instruments related to the upward or downward changes in the underlying assets which may be indices, commodities, currencies or even stocks.

The main difference between CFD trading and stock trading is that you do not own the underlying asset. While traditional trading involves the physical purchase of stocks or other assets for money, with CFD trading you are never buying or selling the underlying asset. Alternatively, you can simply open a position that tracks its value up or down. Another major difference is that CFDs are leveraged, which means that you only need to deposit a percentage of the total asset value to complete the trade, rather than the lump sum in a traditional negotiation context. CMC Markets Officials Explained.

Thanks to the leverage effect, traders deposit only a part of the total price of the underlying asset to open a position, starting at 3.34% for forex and 5% for other instruments. Thus, trading with leverage via CFDs allows traders exposure to larger markets with less capital; However, leverage affects gains and losses in the same way; And if profits can be magnified, losses can also be multiplied; In fact, profits and losses are based on the total value of the transaction, not just the amount of the deposit.

CFDs: Investing in anti-inflationary assets

While in this period of inflation, many people see their standard of living decrease after the general price increase, CFD trading can make it possible to actively participate in the differences in different markets.

Despite high inflation and rising energy costs, business opportunities still exist. While many people see their buying power diminishing, CFD trading can provide a way to actively participate in market movements by allowing them to take advantage of the realities of the market, rather than simply accepting this loss in buying power.

CMC Markets trading platform

With more than thirty years of experience, CMC Markets today appears as one of the players of reference in the field of CFD investments. With CMC Markets, traders have access to over 12,000 CFD tools, as well as a comprehensive charting package that includes over 115 indicators and technical tools, to help them identify potential opportunities.

The company has developed its own ‘Next Generation’ online trading platform which is described as feature-rich, fast, easy to use and customizable. Regularly supplemented with new functions, this trading platform intends to offer the best trading experience to many users, allowing them to trade from home or while traveling; And with experienced customer support. ” Our next generation in-house platform effectively delivers a modern, intuitive and reliable trading experience designed to support all strategies. You can also benefit from French customer support.Dedicated and experienced staff, available to assist you from Monday to Friday, from 9am to 6pm. CMC Markets officials concluded.

While the many trading opportunities should allow users to diversify their portfolio and maximize potential trading opportunities, users should also be aware that this is a highly speculative product that requires taking high risks out of their stake, as CMC Markets reminds us on its website.

CFDs are complex instruments and come with a high risk of losing your capital rapidly due to leverage. 78% of retail investor accounts have lost money trading CFDs with this provider. You need to ensure that you understand how CFDs work and can take the potential risk of losing your money.

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