Does CFD Trading Suitable For You – Here’s the Checklist

CFD trading has become one of the most popular trading domains and a very sought after way to invest in other financial commodities. With CFDs allowing traders to employ leverage on financial assets that otherwise can't be leveraged, we can observe a huge shift from the latter's markets to the formers. While lucrative in multiple ways, CFD trading is by no means an easy ordeal. The markets can get nightmarishly risky in minutes and leave you to lose all your trading capital!
 

What makes CFD trading so appealing is that it allows traders to trade without buying the underlying asset. You need just pay for a contract and speculate on an asset's rise or fall in value! In addition to this, markets like the stock exchanges don't allow traders to leverage, but with a CFD you can hold high-value trade positions on any commodity!
 

What is a CFD?

CFD Trading Checklist

CFD means contract for a difference and is a derivative that can be traded on a number of financial instruments like currencies, stocks or indices. You have to buy a contract at a given price and speculate on the asset's value hike, if it goes up when you're selling it, you will make a profit. It is essentially an agreement between two parties to trade the difference in the asset value. The key point here being that the asset itself isn't being traded; only its value is being speculated on.
 

How Does CFD Trading Work?

CFD trading works no different than a normal trade. Take stocks for example, if the value goes up, you will see profits, and if it goes down, losses. So what makes CFD trading so special? As a CFD trader, you need not own the asset. In the stock exchange market, for example, you will have to purchase the stocks. This won't be necessary while CFD trading! Additionally, CFD allows you to leverage your trades to increase the profit potential. 
 

What Makes CFD Trading Unique?

1.    You only pay the spread amount, nothing extra.
 

2.    There's an extensive array of financial commodities like indices and currencies to choose from.
 

3.    One trading platform allows you to access all the other markets you want.
 

4.    CFD trading allows traders to trade both ways. This means that you can profit from falling markets just as you can from ones that are rising.
 

Grab your trading platform today and get started! With WesternFX by your side, you can start CFD trading right away. Our seasoned veterans will provide you with all the tools you need to excel at your exchanges and make big profits swiftly. Reach out to us now to know more!

Top 4 Forex Trading Tips for Beginners in Philippines

Spread trading is the art of making directional trades with smaller risks. When you buy and sell the same number of assets on varying rates, you are spread trading. A killer strategy, spread trading if employed right can bring in stellar profits. However, like all things in Forex trading, proceeding without a plan can prove to be extremely dangerous. Traders often experience a swift downfall due to poor implementation of strategies or the lack of preparedness.
 

Here are 4 spread trading tips to help Forex traders get on their feet and make profits: 

Basics of Forex Trading for Beginners

1) Always Do Your Homework: As a beginner, the one thing many fail to do is research. They are bubbling with energy and ache to enter the live trade markets. But without the backing of the necessary knowledge, you will stumble immediately and crash early. It always takes time and experience before a trader can see success. To succeed early, however, a good amount of research is required.
 

2) Demo Trade Until Sure: Demo trading is done to test out Forex trading strategies and to learn how to trade. Once you have the knack for strategizing, spend ample time on a Forex demo platform perfecting your approach. While many traders are skeptical about demo trading, it provides an unmatched real-time learning experience. Though these platforms don't imitate a live trade exactly, they are ample for the ones wishing to learn and test trading approaches.
 

3) Start Off Small: Give a novice $1000 and he will blow it by the end of the day, give a professional $1000 and he will turn it into $10,000 by the weekend. How do the latter multiply investments? By taking smaller but surer steps. It isn't about how much capital you have. It is how you invest that matters most. Beginners almost always look to put all their money into thinking it will come back incremented, but it won't. Always start off small and grow in humble amounts.
 

4) Study The Markets: The result of every trade is ultimately decided by the research put in. If you have studied the markets well and trade accordingly, you are bound to see better profits. Erratic market conditions are the reason behind several Forex trading losses; study them, and you can dodge most!
 

Get started with Forex trading in Philippines on the right note - get started with WesternFX! Our seasoned veterans will aid you through trades easy and hard, making sure you emerge successful through them all. Assisted by world-class strategies and equipped with modern trading platforms, you will be able to make winning trades in no time.  Try a Forex demo with us today and see the potential for yourself!