I was recently introduced to CFD's and after reading about them, I can't really see the difference between that and stock trading.
Assume to trade a CFD, you put a 5% investment in, then it only makes sense to trade the CFD if you get your profit plus the other 95% you didn't put in, otherwise how does it differ from standard stock trading? I mean instead of only making money when the stock rises, you can make money if it looses also but meh.
I was also told that in order to make money with CFD's, you need to be prepared to invest big sums and be prepared to lose big sums, as you have to cover the remaining 95% (still using my 5% investment as an example), if the CFD drops and you wanted to go long. Is this true?
Any other advice, comments etc on trading CFD's would be very useful as I look to get into this!
Submitted March 31, 2017 at 05:30AM by claret_n_blue http://ift.tt/2nRSURG
