|
|
Plus500 Trader
-
Version
3.11
Introduction to CFDs
The 'CFD' (Contract for Difference) was developed to
allow clients to enjoy all the benefits of owning a
stock, Forex, Index or Commodity position without
having to physically own the underlying instrument
itself. A CFD can be any type of financial instrument
including: Shares, Forex, Indices and Commodities.
For example, instead of purchasing 1,000 Microsoft
shares from a stockbroker, a client could instead buy
a 10 CFDs of Microsoft on the Plus500 trading
platform. A $5 per share rise in the price of
Microsoft would give the client a $5,000 profit, just
as if he had purchased the actual shares that are
traded on the exchange. A major difference is that
there are no exchange fees and many of the
inefficiencies of trading the underlying shares on the
exchange are eliminated.
Plus500 can offer CFDs with zero commissions and very
attractive margin requirements. CFDs have grown in
|