Getting Started with CFDs
A Revolutionary Approach to Online Trading and Investing
What are CFDs?
A CFD (contract for difference) is an innovative financial instrument that is becoming highly popular with independent traders and investors. CFDs simplify the investment process by allowing you to invest on an individual asset without actually purchasing it.
The main advantages of CFDs are their transparency, convenience, and the high level of control that traders have over each individual trade. When you open a CFD trade on any asset, you aim to secure a profit from changes to the asset’s market price. If you open a position when an asset is at a low price, and then close the position when the asset reaches a higher price, the difference in the two values will determine your profits.
TradingTeck offers traders a leverage facility of up to x200 your initial investment. Opening a leveraged trade allows you to increase your market exposure using TradingTeck‘s money. A succcessful trade will yield profits in proportion to the amount of leverage used.
You can open a CFD trade on any asset as either a BUY or SELL position.
If your analysis indicates that an asset price will rise you should open a BUY position.
If your analysis indicates that an asset price will fall you should open a SELL position.
A Typical CFD Trade
Initial purchase: USD 250 with Euros.
Duration of trade: One week.
Final profit: USD 75.
Analysis of the Trade
The original purchase price of the USD was 0.9 EUR. A week later the market price rose to 1.2 EUR. This 0.3 price movement (multiplied by the USD 250 that you bought) generated a direct profit of $75.
Put simply, you bought the dollars at a low rate and sold them back at a higher rate. If you wanted to try and increase your profits, you could have leveraged your initial trade by up to x250. A successful trade would earn additional profits in direct proportion to the leverage used.
$250 x 200 leverage = $50,000.
$50,000 x 0.3 price movement = $15,000
We make CFD trading easier
TradingTeck is the first choice for modern independent traders who want a top quality brokerage package and a high tech trading environment. We’ve completely rejected the traditional concept of complex fee structures in favour of low cost fixed spreads on all trades. When you trade CFDs at TradingTeck you are guaranteed a fully transparent investment process, and full protection from commissions and hidden charges. Our trading platforms put you firmly in control of your investments and allow complete account management from the same dashboard.
- Use our charts and data feeds to make informed choices about each asset
- See your potential profits, losses and costs at a glance
- Use our risk management tools to automatically control each trade
- Follow trades in real time and respond instantly to market events
Trade with up to x200 Leverage
TradingTeck traders who maintain a sufficient margin reserve in their accounts can apply up to x200 leverage to any trade with just one-click. If a leveraged trade is successful, your profits will increase in direct propotion to the amount of leverage that you employ.
We currently offer over 1,000 assets for leveraged CFD trades. The asset classes include forex and cryptocurrencies, stocks, indices and commodities. We are adding new assets all the time.
Advantages of CFD Trading
CFD trading is ideal for 21st century investors who are looking for fast, convenient and low cost investing. Because you do not purchase the underlying asset when you open a CFD position, there is no transfer of asset ownership, and no paperwork or additional liabilities. If your trade is successful your profits will be instantly credited to your trading account.
You can become a TradingTeck trader in 3 easy steps:
1. Register your details
2. Fund your trading account
3. Begin trading
Leverage allows you to increase your initial investment in any CFD trade using TradingTeck‘s money. As long as you retain an adequate margin reserve in your trading account, you may apply up to x200 leverage with a single click. If your trade is successful your profits will increase in direct proportion to the leverage used.
Many traders avoid limiting their exposure to a single asset class. They prefer to maintain a diversified portfolio containing assets drawn from a variety of markets and types. If a particular market crashes, their overall risk exposure is not absolute.
TradingTeck risk management tools are simple to use and can be activated with one-click. Stop loss/take profit and order entry allow you to set clear parameters for each trade and let them run without constant oversight.
Trade in all Market Conditions
CFD trading is flexible enough to give you access to both bear markets and bull markets. If you predict that asset prices will fall, you can open a SELL position. If you predict that asset prices will rise, you can open a BUY position. If your analysis is correct, you will profit from the difference between the opening price and closing price of the asset.
Can I Trade CFDs?
Millions of people around the world are currently trading CFDs. They come from a huge variety of backgrounds and many had little or no financial experience when they began trading. If you’re ready to devote even a few hours a week to learning the basics, you could become an online CFD trader.
The TradingTeck Education center contains all the tools and learning resources that you will need to get started. You can quickly gain enough background knowledge and basic skills to start practice trading with a free demo account.
One of the big advantages of starting your trading career at TradingTeck is that you can learn at your own pace and are under no pressure to invest. In fact, we strongly encourage new traders not to enter the markets until they are performing competently under the realistic trading conditions of their demo account.
Some of our top investors started out as absolute beginners. Their willingness to practice effective risk management, and work systematically towards their goals, allowed them to progress to professional level trading.
New to CFD Trading?
Choose the account type that best matches your initial trading budget and expectations and we will help you to get the very best out of your trading experience.
- Open a trading account
- Fund your account
- Get a premium training package and learn to trade
Choose the account type that best matches your experience level and financial goals. Your account manager will be available to discuss how best to enter the markets.
- Open a trading account
- Fund your account
- Start Trading