CFD stands for Contract For Difference. This type of financial instrument allows you to benefit from the fluctuations in the price of stocks, commodities, indices and more, without really purchasing them; i.e. you can profit from the difference between the opening price and the closing price of a certain position opened on a certain CFD instrument. It is important to us to emphasize that you don’t own the asset you trade. Future Trade was one of the first online brokers to offer CFD trading, giving individual traders access to a large range of markets which were not accessible to them before.
Future Trade CFD trading is quite similar to forex trading. When trading on the platform, you select the instrument you wish to trade and enter your order. Just like in other trades, if you think the price of a certain instrument, e.g. crude oil, will increase, you’ll want to buy the crude oil CFD. The same goes the other way – if you predict the value will go down you sell the CFD. If you are looking to trade Commodities or Stock Indexes such as Gold, Oil, the Dow Jones, or FTSE, then CFDs are for you.When you trade a CFD, you enter a Contract with your broker on based on the change of price of the underlying asset.