Welcome to this UK’s Premier Online Trading Guide., which will give a brief introduction to the history of CFDs.
CFD it is a form of derivative investment and a potnent trading strategy.
What is a CFD?
A CFD allows you to trade a wide range of financial assets in both rising and falling markets. CFDs mirror the price of these underlying assets and to give you the capacity to benefit from market volatility without actually owning the underlying instrument. The profits are paid out on the difference between the price of the market when you took out the CFD and the price when the CFD closed.
Trading in CFDs is highly speculative and involves a significant risk of loss.
CFDs are traded on margin. This means that you are able to leverage your investment by opening positions of larger size than the funds you have to place as margin collateral.
Once you have all the information, you can then decide the best CFD broker for you.
Our reviews cover all of the factors required to compare Top UK CFD Brokers, and as mentioned previously, all of the CFD brokers listed on our pages provide demo accounts. Is the broker regulated?
The takeaway is that traders need to do their research on CFD brokers and regulation in their country.
When trading CFD you’re making a contract with your UK CFD broker regarding the future movement of a financial instrument.