- Details
- Written by Wang Rihui
- Parent Category: Online Trading
- Category: CFD
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Contract for Difference (CFD) is yet another tradable instrument similar to Forex. The only difference is that instead of currency pairs, stock indices, stocks, treasury bonds, commodities, precious metals are being offered. Just like Forex, instead of owning the assets, traders only own speculative positions and would make profit or loss based on the difference between the entry price and exit price. In addition, traders can hold both long and short positions for these CFDs, which allows more flexibility than the underlying assets which can only be sold when you hold the long position in the first place and have limited time to buy back the position you sold. Furthermore, leverage can also be used in CFD trading.
Below are the typical types of CFD that can be offered by Forex or Binary Options brokers.
US Stock Market Indices and Futures
1. Dow Jones Industrial Average (Dow 30)
2. Standard & Poor's 500 (S&P 500)
3. Nasdaq Composite (US Nas 100)
4. Russell 2000 (US Russ 2000)
Europe Stock Market Indices and Futures
1. Financial Times Stock Exchange 100 (FTSE 100 or UK 100)
2. Deutscher Aktienindex (DAX)
3. Euro Stoxx 50
4. Swiss Market Index (SMI)
5. Cotation Assistée en Continu (CAC 40)
Asia Stock Market Indices and Futures
1. FTSE China A50 Index (China A50)
2. Nikkei 225 (NK 225)
3. Hang Seng Index (HSI)
Bonds
1. US 30 Year Treasury Bond (US T-Bond)
2. US 10 Year Treasury Note (US 10Y T-Note)
3. US 5 Year Treasury Note (US 5Y T-Note)
4. US 2 Year Treasury Note (US 2Y T-Note)
5. UK 10 Year Government Bond (UK Gilts)
6. Germany 10 Year Government Bond (German Bunds)
Commodities
1. Brent Crude Oil
2. West Texas Oil
3. Sugar
4. Wheat
5. Soybeans
6. Natural Gas
7. Corn
8. Copper
Precious Metals
1. Gold
2. Silver
3. Platinum
4. Palladium
Stocks
1. All US major stocks (e.g. Apple, Microsoft, Facebook, Google)
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