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What is CFD Trading

What is a CFD?

A Contract for Difference, or CFD for short, is a simple way to trade many global financial instruments. A CFD is essentially a derivative product that tracks the price movement of an underlying market, which can range from an equity market index like the Dow Jones Industrial Average or a heavily traded commodity future like Gold.

Why Trade CFDs?

CFDs are a flexible form of trading that allow you to participate in both rising and falling markets, when trading these with ADS Securities you will gain access across multiple asset classes including indices, metals, commodities, treasuries and equities.

By trading via a CFD you can get an exposure to the price movements of an instrument without having to but the  underlying product, with all the complications and expense that this can involve.

What are the main advantages of trading CFDs?

  • Hold long or short positions – meaning you can capitalise on either a rising or falling market.
  • Flexibility – you’re no longer restricted to market trade sizes.
  • Leverage – you can trade “on margin” to maximise potential profits, while reducing your initial outlay. It is important to remember leverage can also increase a loss on your position.

Ready to start trading?

Opening an account with ADS Securities is simple and secure. You have the option to open a live account via our secure client portal or try our FREE Demo Account.

Open an Account
Losses can exceed deposits
All trading carries risk, and with some accounts, losses may exceed your deposit.