Bitcoin
BTC$61 246.04

4.35%

Ethereum
ETH$3 251.17

2.79%

Tether
USDT$1.000228

0%

Binance Coin
BNB$543.37

2.69%

Solana
SOL$148.00

5.58%

USD Coin
USDC$0.999891

-0.01%

Benefits of CFD trading


April 2022

One of the major benefits of CFD trading is the ability to trade markets across the world. You no longer have to jump from broker to broker to get global exposure, you can do it by using the contract for difference markets. Forex brokers allow you to get global exposure in a multitude of indices, crypto, currencies, and commodities in one platform.

What Are the Advantages of CFD Trading?

One of the major advantages of CFD trading is that you have the ability to trade multiple markets in various sizes. Instead of going to a futures market and trading an entire contract for crude oil, you have the ability to make smaller trades. Furthermore, you can control a much bigger position with a smaller deposit, all while entering the markets from the same platform.

Instead of going to a futures market and trading an entire contract for crude oil, you have the ability to make smaller trades

Leverage

In the CFD markets, leverage is offered. This gives the trader the ability to control a much larger than normal position. This is a position that is backed by margin, which is a portion of the actual trade size and is kept within the account. PrimeXBT loans traders the necessary amount of funds to benefit from the larger size, and is done completely in the background, freeing the trader to focus on trading setups.

Going short

The ability to short a market is one of the major advantages to trading this CFD market. “Going short” is simply betting on the price going lower. For example, if you were to short the US 30 index, and it falls in price, you will benefit. In a traditional brokerage, shorting becomes much more costly and complex. The ease of simply picking a direction to trade is a major benefit.

The ease of simply picking a direction to trade is a major benefit

Trade a vast array of markets from one platform

Forex broker allows you to trade foreign exchange, indices, crypto, and commodities from the same platform. This is a huge advantage to traditional brokerages, which typically only offer one or two of those markets. It is simply a matter of finding your opportunity and taking advantage of it.

Hedging stock positions

Traders sometimes will use the CFD markets to hedge existing stock positions. For example, if you have a large amount of blue-chip stocks in the United States, you may choose to short the US 30, in order to protect your downside. If your stocks do fall, odds favor the US 30 doing the same thing, thereby protecting you financially as you collect profits from your short position in this CFD market.

No Expiration Date

Unlike traditional futures contracts, CFD markets do not have an expiration date. This allows the trader to hang on to the position for much longer than a futures trader, without the hassle of “rolling over” a contract. This allows for a longer-term outlook to be easily expressed, as “buy-and-hold” is possible.

Mitigate Trading Expenses

Bringing down the cost of trading pays big dividends over the long term. This is a major feature of the CFD world, as you typically pay a small spread, and perhaps a very tiny commission for the brokerage itself. This is in comparison to large fees from a traditional brokerage such as larger commissions, data fees, and platform fees.

CFDs Have no Stamp Duty

While CFD trading is not necessarily tax-free, it is exempt from stamp duty. As a general rule, with CFD trading you only pay tax on capital gains. Make sure to check with your local laws.

FAQ: Frequently Asked Questions

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 72.4% 48 $61 246.04 4.35% 8.24% $1 207 791 624 997 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 77.6% 46 $3 251.17 2.79% 9.85% $390 841 391 746 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 92.8% 1 $1.000228 0% 0.04% $112 492 586 189 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 74.8% 48 $543.37 2.69% 9.41% $80 192 402 418 BNB 7 days price change
5 Solana (SOL) SOL Solana predictions 83.6% 25 $148.00 5.58% 9.85% $68 679 439 753 SOL 7 days price change
6 USD Coin (USDC) USDC USD Coin predictions 95.2% 1 $0.999891 -0.01% -0.01% $33 950 428 770 USDC 7 days price change
7 XRP (XRP) XRP XRP predictions 82.4% 29 $0.529085 -1.18% 24.39% $29 525 767 853 XRP 7 days price change
8 Toncoin (TON) TON Toncoin predictions 82% 27 $7.38 1.13% 2.82% $18 491 966 424 TON 7 days price change
9 Dogecoin (DOGE) DOGE Dogecoin predictions 73.6% 54 $0.112941 1.11% 5.11% $16 389 621 588 DOGE 7 days price change
10 Cardano (ADA) ADA Cardano predictions 78.8% 36 $0.436821 -0.38% 23.96% $15 673 589 601 ADA 7 days price change
11 TRON (TRX) TRX TRON predictions 80.8% 37 $0.137848 -1.93% 9.87% $12 009 843 432 TRX 7 days price change
12 Avalanche (AVAX) AVAX Avalanche predictions 74.4% 48 $26.30 2.07% 1.42% $10 373 109 265 AVAX 7 days price change
13 SHIBA INU (SHIB) SHIB SHIBA INU predictions 74.4% 42 $0.000018 3.15% 11.44% $10 331 743 395 SHIB 7 days price change
14 Lido stETH (STETH) STETH Lido stETH predictions 91.6% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
15 Wrapped TRON (WTRX) WTRX Wrapped TRON predictions 92% 1 $0.116354 -0.46% 0.23% $10 171 995 609 WTRX 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2024 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.