How can I start methodology

CFD trading methods - what you can trade

CFD stands for Contract For Difference and is now offered by many online brokers. As a private investor, you can open an account there, deposit some money and start trading CFDs very quickly.

The range of underlyings you can trade depends on the broker you choose - but ultimately every broker has a relatively large range of values ​​on offer, so that as a private investor you can usually find everything there that you would like to trade.

Index trading with CFD

If you want to concentrate on the big indices, you can do this using CFD. Here you can buy or sell the DAX and of course the US indices such as Dow Jones, Nasdaq100 and S & P500.

But that's not all, other indices are also often offered for trading. Then it is also possible to trade the EuroStoxx as well as the Nikkei and all indices of larger European countries such as France, England, Italy, Spain, Holland and also Switzerland.

With this alone, many beginners who are looking for CFD trading methods are often provided with more values ​​than necessary. How can you learn to trade CFDs?

Trading stocks with CFDs

The range of stocks that can be bought with CFDs is enormous. Here you can also buy or sell companies that are not listed in the largest indices in their countries.

This is particularly interesting for investments in German companies such as Praktiker or Pro Sieben. Here, with a small position, you can participate in the price movement in a leveraged manner and do not have to buy any shares.

This CFD trading method is not limited to German stocks. You get many other European stocks and a lot from the US for trading as well. CFD trading strategies: 4 tips for success

Trade currencies with CFD

For many traders, one of the main arguments in favor of CFD trading is the currency market. In addition to the major currency pairs, there are also a lot of smaller ones to trade.

The Forex market is particularly interesting for day traders. Here you can trade CFDs with pinpoint accuracy and are immediately in the market or out again. The fast processing time in CFD trading is particularly advantageous with volatile currencies.

The classic EUR / USD is traded, but there is also the opportunity to trade many other values. Over 50 currency pairs are often made available for trading. In addition to USD / CHF, EUR / GBP, USD / JPY, there are also exotic items such as the Australian dollar against the Singapore dollar or the US dollar against the Hungarian forint. Forex Strategy - How To Trade Currency Pairs

CFD trading methods: conclusion

The raw materials market offers another possibility. You also have access to it via CFD. There are therefore some CFD trading methods that you can use to speculate on silver, gold or oil.

Food can also be traded via CFD. Also on offer: wheat, coffee, sugar. Then (depending on the broker) there is also copper and cotton.

As you can see, the range of CFD trading options is huge. There are numerous brokers and even more underlyings with which you can earn on rising or falling prices.

For newcomers, a free demo account with a broker is worthwhile to gain initial experience without risking losses.

Get to know the advantages and disadvantages of share and fund savings plans and find out how you can set up a savings plan. > read more


© Verlag für die Deutsche Wirtschaft AG, all rights reserved