We divide our products into two main classifications - CFD (Contracts For Difference) and Foreign Exchange Margin Trading. The products are almost identical from a trading perspective but there are some regulatory differences.
A CFD is an agreement between a Client and a Broker to exchange the difference between the opening and closing value of a trade. A CFD allows investors to receive many of the benefits of actually trading the underlying instrument (for example dividends in a share based CFD) without owning it. A CFD is simply a derivative product and not the actual underlying product.
CFDs are margin traded products. Thus, clients only deposit a fraction of the overall value to trade the full contract value of the product allowing you to make a much larger potential investment. Just like physical shares your profit or loss is determined by the difference between the price you buy at and the price you sell at. Margin levels required by AGM Trader will vary between CFD products.
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