• Advertise
  • Contact
Tech News, Magazine & Review WordPress Theme 2017
  • Home
  • Business
    “Bitcoin Revolution South Africa” Patrice Motsepe Reviews App Trevor Noah Cyril Ramaphosa

    “Bitcoin Revolution South Africa” Patrice Motsepe Reviews App Trevor Noah Cyril Ramaphosa

    How to Make Money Forex

    How To Make Money Using Forex Trading

    Six smartphone platforms are among the first to support Android 11

    UNISOC: Six smartphone platforms are among the first to support Android 11

    Trending Tags

    • Business
    • Finance
    • Forex
    • Money
    • Marketing
  • Finance
    “Bitcoin Revolution South Africa” Patrice Motsepe Reviews App Trevor Noah Cyril Ramaphosa

    “Bitcoin Revolution South Africa” Patrice Motsepe Reviews App Trevor Noah Cyril Ramaphosa

    How to Make Money Forex

    How To Make Money Using Forex Trading

    How Do You Buy Bitcoin Stock

    How Do You Buy Bitcoin Stock Online?

    Trending Tags

    • Business
    • Finance
    • Forex
    • Money
    • Marketing
  • Internet
  • Technology
  • Health
  • Family & Home
    Geyser repairs Johannesburg

    Tips to Avoid Unexpected Plumbing & Maintenance Costs

    mother-and-daughter

    Are Today’s Households too Modern for Household Traditions?

    kids money

    Why Should Kids Get Allowances – The Top 7 Reasons

    investing

    About Money Market Investing – Is It For You?

  • Reviews
    FXGM ZA - forex broker in South AfricA

    A Review of FXGM ZA

    SEOClerks Marketplace Review – Affordable SEO Services

    SEOClerks Marketplace Review – Affordable SEO Services

    apple iphone x review

    Apple iPhone X Review – What You Should Know Before You Buy

    sage one accounting review

    Sage One Accounting Software Review

  • Other
No Result
View All Result
  • Home
  • Business
    “Bitcoin Revolution South Africa” Patrice Motsepe Reviews App Trevor Noah Cyril Ramaphosa

    “Bitcoin Revolution South Africa” Patrice Motsepe Reviews App Trevor Noah Cyril Ramaphosa

    How to Make Money Forex

    How To Make Money Using Forex Trading

    Six smartphone platforms are among the first to support Android 11

    UNISOC: Six smartphone platforms are among the first to support Android 11

    Trending Tags

    • Business
    • Finance
    • Forex
    • Money
    • Marketing
  • Finance
    “Bitcoin Revolution South Africa” Patrice Motsepe Reviews App Trevor Noah Cyril Ramaphosa

    “Bitcoin Revolution South Africa” Patrice Motsepe Reviews App Trevor Noah Cyril Ramaphosa

    How to Make Money Forex

    How To Make Money Using Forex Trading

    How Do You Buy Bitcoin Stock

    How Do You Buy Bitcoin Stock Online?

    Trending Tags

    • Business
    • Finance
    • Forex
    • Money
    • Marketing
  • Internet
  • Technology
  • Health
  • Family & Home
    Geyser repairs Johannesburg

    Tips to Avoid Unexpected Plumbing & Maintenance Costs

    mother-and-daughter

    Are Today’s Households too Modern for Household Traditions?

    kids money

    Why Should Kids Get Allowances – The Top 7 Reasons

    investing

    About Money Market Investing – Is It For You?

  • Reviews
    FXGM ZA - forex broker in South AfricA

    A Review of FXGM ZA

    SEOClerks Marketplace Review – Affordable SEO Services

    SEOClerks Marketplace Review – Affordable SEO Services

    apple iphone x review

    Apple iPhone X Review – What You Should Know Before You Buy

    sage one accounting review

    Sage One Accounting Software Review

  • Other
No Result
View All Result
Turbo Cash
No Result
View All Result

How South Africans Should Do CFD Trading

Turbo Cash by Turbo Cash
19/08/2019
in Finance, Technology
Home Finance
Share on FacebookShare on Twitter

Contract for difference (CFD) trading is a means of trading without actually trading physical goods, stocks or currencies. This type of investment is not about obtaining an asset and selling it later, but more like betting on whether it increases or decreases and profiting on the difference. The movement on the market is where it counts, which is why CFD trading is popular with volatile assets.

It is a relatively new investment concept that came from the 1990s as a technique to trade financial derivatives. There is no tie to any specific market as a CFD is between traders and brokers and typically has lower margins and low up-front investment and low margins.

CFD and Forex

Since there is lots of movement in Forex trading pairs, CFDs are also applicable in this market. You will be buying the currency with the broker and won’t have the currency in your account. While trading at a margin exists with regular brokers, a CFD will likely be more favorable.

The spreads and currency prices are typically arbitrary to the provider and may sometimes have it set in their favor. This is why you should carefully research CFD brokers to make sure you are getting a more fair price and spread. This is especially true with the entry price, as a higher entry price than the market will give you a bigger chance to lose money.

However, once a contract is put in place, maximum trading prices no longer becomes an issue. The goal is to wait for the market price to go above the price locked into the contract. It could also be advantageous to create contracts through a provider in another country, and preferably the country that uses the same currency.

Using a CFD isn’t possible in the United States due to their regulations, but it remains popular in Europe, South Africa, and many other international markets. Generally, the more movement a market has, the more viable the usage of a CFD will be.

CFD and Cryptocurrencies

With the proliferation of Bitcoin in recent years, CFD trading has also transferred over to this market. Cryptocurrencies are unique in the aspect since cryptocurrencies are mostly unregulated while your CFD broker is likely under some sort of regulation.

Bitcoin, Ethereum and new altcoins are extremely volatile markets and may seem some benefit due with a CFD contract. Again, prices may be set slightly lower than market value to hedge losses on the side of the broker, and some fees are involved.

Final Thoughts

Since there are holding fees involved, it should be noted that CFD trading is not suited for the long term investor. In that case, it would be better to purchase your assets the traditional way, although you will need 100% of the money.

Using a CFD as an investment can be powerful for short-term gains and can be used as a hedge against market volatility. Just like any investment, you need market knowledge and a solid trading plan to make money as CFD trading isn’t exactly newbie-friendly.

Tags: CFD Trading
Turbo Cash

Turbo Cash

Turbo Cash brings you the latest financial, business, internet and technology news around the world.

Related Posts

TECNO, UNISOC, South Africa
Technology

Powered by UNISOC SC9832E, TECNO POP 2X Plus Is Available in South Africa

19/10/2020
“Bitcoin Revolution South Africa” Patrice Motsepe Reviews App Trevor Noah Cyril Ramaphosa
Finance

“Bitcoin Revolution South Africa” Patrice Motsepe Reviews App Trevor Noah Cyril Ramaphosa

04/10/2020
Next Post
TOP 5 ONLINE TRADING PLATFORMS

Top 5 Online Trading Platforms

Discussion about this post

SeoClerks

Popular.

Binary Options Trading

What are the Pros and Cons of Binary Options Trading?

11/03/2019
money

Fundamental Tips on Personal Finance

07/03/2019
Keep Your Audience's Attention

9 Tips To Keep Your Audience’s Attention

05/03/2019

Latest Posts.

KRIS makes my life worry-free

KRIS makes my life worry-free

27/10/2020
Paving Bricks

What Is Block Paving? How To Pave The Right Way?

21/10/2020
TECNO, UNISOC, South Africa

Powered by UNISOC SC9832E, TECNO POP 2X Plus Is Available in South Africa

19/10/2020
Turbo Cash

Turbo Cash is an online magazine blog bringing you the latest news and reviews about business, finance, internet, technology and more!

Follow Us

Categories

  • Articles
  • Business
  • Family & Home
  • Finance
  • Health
  • Internet
  • Other Stories
  • Reviews
  • Technology

Popular Posts

loans South Africa same day payday loans south africa

Why Getting Cash Loans in South Africa Doesn’t Have To Be Difficult

19/10/2019
“Bitcoin Revolution South Africa” Patrice Motsepe Reviews App Trevor Noah Cyril Ramaphosa

“Bitcoin Revolution South Africa” Patrice Motsepe Reviews App Trevor Noah Cyril Ramaphosa

04/10/2020

Recent Posts

KRIS makes my life worry-free

KRIS makes my life worry-free

27/10/2020
Paving Bricks

What Is Block Paving? How To Pave The Right Way?

21/10/2020
  • Advertise
  • Contact

© Copyright Turbo Cash | All Your Finance, Business & Technology News and Reviews

No Result
View All Result
  • Home
  • Business
  • Finance
  • Internet
  • Technology
  • Health
  • Family & Home
  • Reviews
  • Other

© Copyright Turbo Cash | All Your Finance, Business & Technology News and Reviews