CFD Trading Assets

CFD TRADING ASSETS

One reason so many investors flock to CFD trading is due to the array of assets that are available. As we make trades in the financial markets, we handle unique assets which have their own specific features. They can be stocks, currencies or even commodities in the form of rice, crude oil or wheat, to name a few. These may be assets that only live in a virtual sense like market indices. Regardless, the kind of asset being traded, the fundamentals of trading CFDs is the same across the board. Traders earn when they correctly choose the track a price will move and the number of profits made rests on the CFD’s starting and ending price.

CFD ASSETS TYPES

Generally, CFD brokers will grant their clients the following asset choices:

Commodities

Currency Pairs

 Indices

Stocks

CURRENCY PAIRS

Currency pairs typically combine all the majors such as the EUR, USD, GBP, CHF, AUD, CAD, and JPY. We at ForexBorsa, offer our clients in the forex markets the minor currency pairs plus exotics. The leading reason traders like trading on currencies are due to the high volatility and continuous change this asset offers. CFD traders are thus awarded boundless prospects for profits.

COMMODITIES

Commodities which are natural material goods can be set into two classes, hard and soft commodities. The hard commodities are the goods which need to be mined/removed from the ground (like crude oil, gold, rubber or silver) and other minerals. Soft commodities, on the other hand, represent in most particular the agricultural resources (cotton, wheat, rice, sugar, and coffee) including other crops and livestock. Commodities are an essential asset due to their world use and consumption. This asset is highly valued, they are the fabric of lives, an element that we could not survive without. With that said, it is no wonder why geopolitical news of poor weather conditions and natural disasters can significantly affect the yielding of these commodities, which ultimately affect the value of the commodity.

INDICES

Indices are an arithmetical gage of the worth of a portion of the stock market. The building blocks of a market index are usually made up of stocks of companies, which are deemed as embodiments of a section of the local economy. For example, the index that calculates the wellbeing of the oil and gas sector will contain the stocks of the leading gas and oil firms in the industry. Popular Market indices, usually traded by CFD traders comprise the FTSE 100, S&P500, Dow Jones Industrial Average, DAX, Nikkei 225, and NASDAQ.

EQUITY

Equity or stocks are financial bonds that provide their owners the rights and rewards of ownership in a company. Today, because we have progressed in the online trading technologies, anyone can attain and buy stocks online, through an online trading platform. It would be safe to say that among all the assets available, stocks are the asset type that virtually everyone recognizes. Stocks have been around longer than other markets. CFDs contracts on stocks, allow you to profit from the price movements plus from stock splits and bonuses awarded to the stockholders. Not to mention, with CFDs, you can leverage your trades, in contrast to trading with actual stocks.