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What is CFD?
If you want to make nice profits, CFD will give you this possibility in real time by using a small amount of money.

  • The seller agrees to pay the difference between the opening and closing value of an asset, in case the difference is positive.
  • The buyer agrees to pay difference in value, if the difference is negative.

DEVELOPMENT OF CFD
CFD is good for the customers to trade and to have a high profit

Example:  The following example will show some of the advantages of CFD
transactions versus the actual acquisition of shares:

  • Two investments are made: 1) CFD of Apple ; 2) Shares of Apple.
  • Price at investment time: 300 EUR.

In both cases, 100 units are bought.
Total of the investment = 30,000 EUR (300 x 100).
At the same time, EUR/USD falls from 1,32 to 1,30.

Calculation factorsShareCFD
Required investment 100% 5%
Invested amount 30,000 EUR 1,500 EUR
Profit from raise to 330USD/share (+10%) 3,000 EUR 3,000 EUR
Profit in percentage 10% 200 %
Amounts subject to exchange rate** 33,000 EUR 4,500 EUR
Profit in USD 3,300 USD 3,870 US
**Calculation :
(30,000 x 1,32) - (30,000x1,30) = 600;
(3,000x1,30)= 3,900;
3,900-600= 3,300 USD
(1,500x1,32) - (1,500x1,30) = 30;
(3,000x1,30) = 3,9000;
3,900-30 = 3,870 USD


In fact, CFD is a very effective financial tool in stock trading activities by using low
collateral value of the transaction, enabling us to spread the risks in trading and
hedge ourselves against changes in exchange rates. 
CFD is a relatively new financial


SUMMERY
instrument, saving fees and exchange differences.
It gives the possibility to invest using a relatively small amount of money (leverage) ,
making nice profits, even if the market crashes.