Now this is where it gets tricky!
CFD trading is not for the faint of heart or those adverse to risk.
CFD (Contracts For Difference) trading is basically like margin trading on steroids. profits and losses are accelerated and you need to have a good understanding of how this works.
I have traded in CFDs for a while now and they are my instrument of choice but when I teach people on how to get started I always say only throw in what you can afford to loose, especially for the first couple of attempts you make at this, as you most likely will loose it while you get your head around the concept of trading shares in a 100:1 lending ratio.
a 100:1 lending ratio is a big thing to comprehend as well. say you started up a CFD account on $1000 you would already have enough leverage to buy up to $100,000 worth of your chosen asset. Essentially this means if your assett goes up 1% you stand to make $1000 but if it goes down 1% you loose your entire trading base. IG markets will generally sell you out before you go into negative balance but again check this with your provider before you put your hard earned money in. The last thing you want to do is loose your deposit AND have a debt to your service provider
As mentioned before I use a program called IG markets (I don't have any affiliation with them) which I whole heartedly recommend, I have tried a few others but this comes out on top for me. Great range of stocks, indexes, binaries, commodities and just about everything else you can ask for.
There are many tricks to using trading software this powerful and I will cover a few of them in more detail in upcoming articles
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