What are CFDs?

What are CFDs? CFDs or Contracts For Difference are a flexible alternative to traditional trading. Use CFDs to trade on the rise and fall of various financial markets without owning the underlying asset. And with Pure Market Broker you can access FX pairs, Spot Metals, CFDs, Indices and Commodities such as Oil.

How does it work? Each market has a Buy and Sell price also known as the bid and the offer. If you think the market will rise in value you buy, this is called going long. If you think the market will fall, you sell, known as going short. The more the market moves in the direction you predict the more profits you make. The more the market moves the opposite direction, the more you lose.

What are the benefits? CFDs are a leveraged product which means you can open a trade without putting up the full value of your position. Use our guaranteed stops to cap your potential losses and stay in control of your risk even when you are away from your desk. With Pure Market Broker you can trade on a wide range of CFDs.

How do I begin? Practice trading CFDs with our demo account or start trading today. It’s free to open an account and there is no obligation to trade.

Now, traditional safe havens such as government bonds and gold are likely to rise in times of uncertainty, creating opportunities to go long if you can get in before the masses. And futures markets such as the VIX track implied volatility so they may rise in response to the anxiety and skepticism that often surrounds a stock market crash. Whichever market you choose to trade, it’s likely to be highly volatile, so consider using a stop to minimize your losses in case the market moves against you. A guaranteed stop will close the trade at your chosen level even if there are liquidity problems in the underlying market.