Leverage your Investment Potential
CFDs are traded on leverage, so you can increase your exposure to an underlying asset with the same initial investment. To open a CFD trade, you need to deposit only a small percentage of the total trade value. ECM Group offers the option of 100 times leverage on your invested capital.
Trade Financial Markets around the World
CFD trading provides you with access to a wide range of markets that are often unavailable to retail investors. It is as easy to trade on the price movement of commodities such as oil or gold as it is to trade an individual equity. CFDs also allow you to speculate on whole indices or sectors from a single trade.
Profit when Markets Fall as well as Rise
By ‘going short’ (selling), you can profit from a falling market as easily as you could profit from a rising market by buying it. If you believe that a company or a market will experience a loss of value in the short term, you can use CFDs to sell it today, with the expectation that you can buy it back in the future. As always, if the price of your trade moves against you, your position will result in a loss.
Since CFDs can be ‘shorted’, they can be used to provide ‘insurance’ against price falls in an existing portfolio. For example, if you have a long-term portfolio that you wish to keep, but you believe that there is a short-term risk to the value of your investments, you could use CFDs as a strategy to mitigate short term loss by ‘hedging’ your position.
Why Trade CFDs with ECM?
CFDs are an increasingly popular way to trade, thanks to their flexibility and accessibility to global markets. ECM provides you with the most popular CFDs.