Throughout the past decade, CFD trading (i.e. ‘Contract for Differences’) has become a highly accessible way for individuals to generate a profit on their own terms. It comes as no surprise that millions of people around the world have taken up trading, either as a hobby or as their primary means of income.
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The allure is simple: Online trading allows you to become the Master of your own finances. Plus, the internet has made trading much more inclusive than ever before, as anybody with an internet connection and a computer can access global markets from wherever they are in the world. No matter where you come from or what you do, you can profit from trading a range of financial instruments such as Forex, Crypto, Stocks, Indices and Commodities with Online Broker LonghornFX.
With a wide variety of instruments available, LonghornFX provides endless opportunities for traders to generate profits through trading CFDs. Trade over 160+ with up to 1:500 leverage at LongHornFX
Opening Long and Short Positions
A CFD is a type of derivative, which means that individuals can trade without actually buying or selling the underlying asset. Rather, they will buy or sell units based on whether they believe the price of the underlying asset will rise or fall over a given length of time.
You will have heard the terms ‘go long’ and ‘go short’ when trading, but what do they actually mean? Going long simply means opening a ‘buy’ position. You buy units for an underlying asset when you believe that the price value of that asset will increase. When closing the position, the difference in price will be your profit.
An advantage of CFD trading is that you can also profit during times of market downturn by ‘going short’. This means opening a ‘sell’ position, which you would do if you think the price of an asset will decrease. When closing your position, your profit will be equal to the change in the price of that asset.
With CFD Trading, traders benefit from higher leverage than traditional trading. Leverage allows traders to open positions worth more than the funds in their trading account, resulting in higher potential profits. For example, if a trader opens a position worth $100,000 using a leverage setting of 1:500, they will only need to deposit $200. Any profits made with a leveraged position will be maximised, resulting in higher earnings for the trader!
24/7 Trading and Customer Support
A third advantage of CFD trading is that individuals can get access to global markets 24/7. While the Forex Market is available 24 hours a day, 5 days a week, Online Brokers providing Cryptocurrencies can allow traders to open positions at any day or time they choose as Crypto markets never close. Cryptocurrency markets are typically highly volatile, but traders can take advantage of both rising and falling prices with CFD trading.
Online Broker LonghornFX provides 24/7 Customer Support, giving traders the ease of mind to trade with confidence, at their own convenience. Create your FREE Account and get access to 160+ tradable assets today at LongHornFX