Trade on Leverage – Increase your trading potential
CFDs allow traders to make more effective use of their trading capital. CFD trading only requires a fraction of the total value of the position (known as margin) as deposit to open the CFD position. The profit or loss is based on the total value of the position.
Trading on leverage provides traders with increased trading opportunities and greater flexibility to diversify their portfolio as capital can be used more effectively.
Profit in all market conditions
CFDs give traders the ability to profit in all market conditions by allowing a CFD trader to short sell. If a trader believes a share is overvalued they can ‘short sell’ a CFD to profit from a falling share price. Conversely CFD traders can open a ‘long’ buy position on shares they believe are undervalued and profit from rising prices.
Click here to discover the benefits of trading DMA CFDs with First Prudential Markets.