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Advantages of trading volatility in CFDs over regular trading.


Earnest
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Hey Earnest,

The contract for differences is a derivative instrument that will allow you to take a market position depending on the price changes of the underlying asset without necessarily owning it. You agree to exchange the difference between the opening and the closing price of the essential asset; this difference will be your profit, known as the spread.
You can trade CFDs on leverage; therefore, you will contribute simply a portion of the total value needed as your initial capital. When you use leverage, your initial investments will be higher. Therefore, your chances of making losses are high, but if you make profits, they will be significant.
When a CFD is volatile, there is a high chance of making significant profits from a high volatile CFD compared to the regular one. 
In CFD trading, you have an array of markets you can trade with if a trading opportunity comes up, and some of these opportunities may be highly volatile.
In regular trading, you buy your asset directly with the whole amount that is required. In CFD trading, leverage will allow you to enter a market position at a much lower price. You will deposit a fraction of the amount needed, and your broker will lend you the rest. The amount you deposit is known as the margin. Leverage is an excellent factor while trading volatility.
While trading volatility in CFDs, you can use direct market access; therefore, you can directly interact with the market and state the prices you want to deal with. This is different in regular trading since your broker is the one who will set the price. You have no say in this market.
CFDs are an excellent tool for hedging your portfolio, more so if the market is highly volatile. For example, if you hold a position in a particular company for a long time and speculate that the price will decline, you can reverse it to manage this risk.

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