CFDs

Essentials of CFDs Trading with Lumentrades

In finance, a contract for difference (CFD) is a contract between two parties, typically described as "buyer" and "seller", stipulating that the seller will pay to the buyer the difference between the current value of an asset and its value at contract time (if the difference is negative, then the buyer pays instead to the seller). In effect, CFDs are financial derivatives that allow traders to take advantage of prices moving up (long positions) or prices moving down (short positions) on underlying financial instruments. They are often used to speculate on those markets. For example, when applied to equities, such a contract is an equity derivative that allows traders to speculate on share price movements, without the need for ownership of the underlying shares. CFDs may be traded as stocks, bonds, futures, commodities, indices, or currencies. CFDs are also known as forward contracts for difference (FCD).

Benefits of trading CFDs with Lumentrades

  • No extra charges - At Lumentrades we do not charge any fees for trading on our platform, except access fees, subscription fees and transaction fees.
  • Diversification Trading Indices offers access to a whole new range of markets, meaning you can diversify your trading strategies across uncorrelated instruments as well as take advantage of the different opportunities that global equities markets present.
  • Take advantageThis enables an investor to take advantage of a falling or rising market, therefore no matter if the market is bullish or bearish an investor can still find a way to generate more income.
  • Insurance of capital - One of the most innovative features of Lumentrades is that we offer investors the opportunity to insure their capital. To ensure that they don't lose all of their investments even if trades go bad.
  • Learn more