What are CFDs?
CFD or Contract for difference is an agreement between two parties, buyer and seller. The value of the contract is based on the underlying asset (for example, index, stock or commodity futures). Upon the contract expiration or when the parties make a decision to close the position, the seller pays the buyer the difference between the current value of the asset and its opening value, if the value of the underlying asset has increased. And, vice versa, if the value of the underlying asset has decreased, and the difference between the current and initial value of the contract is negative – the buyer pays it to the seller.
Forex trading deals with traditional industry instruments, such as currency pairs, which help compare one currency against another. Such examples can be represented by the following combinations: EUR/USD or USD/JPY. The exchange rate represents the purchase price ratio between the two currencies, and depending on their popularity, you can segment them into:
- Major currency pairs – Major
- Less popular pairs – Minor
- Rare pairs – Exotic
By trading Share CFDs, you gain access to the stock market of some of your favourite companies. As an investor, you’re trading on the price movements on shares of a corporation that is trading in the equity market.
offers nearly 180 major company shares, including but not limited to:
- American Express
Trading index CFDs enables you to expand your portfolio while opening up positions on the global equity markets. Indices trading allows you speculate on influential companies of a market segment. Indices, such as the DAX 30 and the American S&P 500, give you the chance to take advantage of increased volatility.
Because indices are numbers, you cannot directly own them. To trade them you need to select a product that mirrors their performance by tracking the underlying index’s price, such as the DOW 30, SPX500, FTSE100, EuroStoxx, IBEX and CAC.
Commodities are the actual physical goods like corn, soybeans, gold, crude oil, etc. Commodities have the same principle as any other online investment – traders do not own the actual products but only speculate on their market value. Traders with Nor Trade are given access to the most traded and profitable commodities gold, silver and crude oil.
- GoldTrading gold is usually viewed as protection against investment market drops, inflation, and currency failure. It is considered one of the most profitable investments because its market price change every day and every minute.
- SilverSilver futures give traders the opportunity to profit from both falling and rising markets. Speculators buy silver futures when they believe that silver prices will go up. Conversely, they will sell silver futures when they think that silver prices will fall.
- Crude OilThe crude oil market is one of the most active and dynamic markets, making the future a very profitable investment.