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WHY TRADE CFDS?
People who trade in CFDs may do so for a variety of reasons. Some trade for speculation with a view to profiting from fluctuations in the price or value of the underlying instrument or security. For example, share CFD traders may be investors who are looking to profit from intra-day or overnight to longer term market movements in the underlying shares.
Others trade share CFDs to hedge their exposures to the underlying shares. For example, CFDs can be used as a risk management tool to enable those with existing holdings of underlying shares to lock in an effective sale price for the shares concerned by taking a "short" CFD position. Then, if the price of the underlying shares the investor holds falls, the short CFD positions will wholly or partly offset the losses incurred on the physical holdings.
Benefits of CFDs are:
- No Commission Charges trading CFDs with MFGfx you only pay the spread (the difference between the bid/ask, buy/sell price).
- CFDs are traded on margin so you can maximise your trading capital.
- High Leverage.
- No expiry period.
- NO Stamp duty (UK Clients) is payable (saving 0.5% compared to a traditional share purchase).
- Receive interest on sold open positions.
- You can profit from falling or rising markets by trading long or short.
- A single account can give you access to a greater range of financial markets.
- You can limit & manage your risk using 'Stop Loss' and 'Limit' orders.
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