A Contract for Difference (CFD) is an agreement made between the buyer and the seller of a specified asset. This agreement states that the seller will pay the buyer the difference in price between the asset’s value at the time the agreement was made and the asset’s value at present.
CFD trading is one of the most popular options for traders because you’re trading on price movements of an asset, without actually having to buy it.
CFDs offer you easier and faster access to the commodities markets. As a result, it provides you with flexible trading opportunities that have great potential to boost your investment portfolio.
With FXTM, you can choose to trade the following three CFD commodities:
Our CFDs on Commodities are designed in a way that gives clients the same trading benefits as if they were trading instruments on the actual commodities exchange, but without the costs associated with connecting to the actual exchange.
Thanks to leverage, CFDs are attractive to traders because they offer an opportunity to participate in the financial markets with a small initial investment. Traders use a smaller portion of their own capital when opening a position, which opens the doors for potentially bigger returns. That said, it’s important to remember that leverage carries the same potential to increase losses as it does to boost profits.
Our CFD commodities are tradable with both instant and market execution. FXTM’s commitment to efficient order execution has ensured deep liquidity with many providers, and super-fast execution for more precise trading.