Learn To Trade CFDs (12)

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Updated: 25 September 2020
Want to learn to trade CFDs, but don’t know where to start? Our CFD trading guides are your fast-track ticket to trading success. Kick-start your trading career today and become a successful trader with the help of expert strategies and trading ideas that will set you up for success. In addition, you’ll also discover the secret tips of professional traders. Feel confident making your first trade as you learn how to get started, create a trading plan, manage your risk and choose the right broker for you. Here at AskTraders, we’ll be with you every step of the way as you embark on your new and exciting journey into CFD trading.
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How to learn CFD trading?

CFD or contracts for difference involves speculating on the price difference of various asset classes such as forex, equities, commodities, cryptocurrencies, bonds, ETFs and others. If you’d like to learn CFD trading, one of the ways to start is to choose the asset class and then go to the several online resources or CFD broker websites that offer free tools to learn.

One prominent site that provides both beginners and experienced traders with tons of free CFD learning tools is Asktraders.com.

What are the benefits of learning CFD trading?

There are several benefits to learning CFD trading. Here are some of them:

1. Learn the process of accessing the underlying asset at a low cost with leverage.

2. Trade on the price movements of the asset without the need to purchase them outright.

3. Access to a massive range of global markets.

4. Understand how prices mirror the underlying asset class.

5. Hedge the underlying portfolio.

6. No expiry.

7. In countries like the UK, CFD trading is exempt from stamp duty. 

Can you make money by trading CFDs?

Yes, you can make money in CFD trading. The primary difference between CFDs and the other financial products is that you trade the underlying asset with margins in the former rather than purchasing them outright in the latter.

However, to become a successful trader, it takes a lot of time and effort, which is why only a small percentage of traders are profitable. One approach to making money in CFDs is to recognise the risk inherent to the markets and capitalise on it.

Is CFD trading illegal?

CFD trading is legal in a majority of countries, albeit a few exceptions. In the US, CFD trading is illegal because of the restrictions imposed on OTC financial instruments by the Securities and Exchange Commission (SEC). Besides the US, CFD brokers generally do not offer services in countries like Syria, North Korea and Iran, since they are politically exposed and due to the risk of getting entangled with anti-money laundering agencies.

You can learn more about the countries that CFD brokers generally operate in from Asktraders.com.

How difficult is it to learn to trade CFDs?

It’s not very difficult to master CFDs if you already have the experience of trading or investing in the other asset classes like equities, commodities or if you’re familiar with derivatives. However, if you are a beginner, depending on the time frame you set to learn about these markets, you can choose between a financial markets trainer; which is a speedier option and self-learning.

Do you want to learn to trade CFDs, but are not sure where to start? Check out the CFD trading guides at Asktraders.com and fast-track your learning to trading success.