XTrade Trading – Climbing the Financial Ladder Through CFD Trading

CFD trading is a rapidly growing market, attracting an ever increasing number of retail traders from around the world. CFDs were originally developed in the early 1990’s in the UK as a type of equity swap that was traded on margin. Initially used by hedge funds and institutional traders to hedge cost-effectively their exposure to stocks on the London Stock Exchange, they have now become a popular investment for online traders. Trading platforms such as XTrade offers CFD trading, as well as forex. Forex is an amazing way to make your start in online trading platforms, it’s easy and quick to master, and offers you plenty of resources to educate yourself on. CFD’s are what we would consider, the next step.

Before You Open an Account at XTrade – What is a CFD?

A CFD is a contract for difference. In finance, this is a contract between two parties, the “buyer” and the “seller”. The contract stipulates that the seller will pay to the buyer the difference between the current value of an asset and its value at contract time. Complicated? Not really, how this works is, that if the difference is negative, then the buyer pays instead to the seller. CFDs are financial derivatives that allow traders to take advantage of prices moving up (long positions) or prices moving down (short positions) on underlying financial instruments. CFD’s are often a tool used to speculate on those markets.

Stock Market Board

CFD’s are really the next level of trading when it comes to online platforms. At XTrade, as well as many other trading platforms, we see traders start out in currency (Forex trade) and as they find their feet, move on to CFD’s as they become more confident in their trading. Trading platforms should offer an extensive CFDs list, from international markets.

Utilizing the CFD market can be tricky at first. But as with anything, mastering an art takes patience, plenty of research and of course, practice. If you are already comfortable in trading Forex, and are getting the financial “itch” to move forward, I couldn’t think of a better way to climb the financial ladder, than trading in CFD.

CFD Information – The More You Know …

As you know, CFD’s are very different from currency trading. A huge incentive to trade in CFD is, you could see a profit when the markets fall as well as when they rise.

  • With CFD trading, you can profit from a falling market by what is known as “going short” (selling), just as easily as you could profit from a rising market by ‘going long’ (buying). If your research and analysis leads you to believe that a company or market might experience a loss of value in the short-term, you can take advantage and use CFDs to sell within the financial day. This means your profits will rise in line with any fall in price. As always, if the price of your trade moves against you, your position will result in a loss.
  • Trading Indices, we will offer you access to a whole new range of markets, meaning you can diversify and build on your trading strategies across uncorrelated instruments. This means you can take full advantage of the different opportunities that global equities markets present.
  • Margin Efficiency is in your favor. The CFD margin requirements are generally more favorable than stock margin requirements, and under no circumstances will they be worse. Trading platforms offer you a clear and current view on CFD stocks; utilize all the information that they have to offer. They also go a step further and offer you “trading on the go,” like XTrade app tool for example, which offers a professional trading functionality with a simple user-friendly interface.

This post was sponsored by Xtrade.

Blogger-in-Chief here at RetirementSavvy and author of Sin City Greed, Cream City Hustle and RENDEZVOUS WITH RETIREMENT: A Guide to Getting Fiscally Fit.


  1. Hi James, do you trade CFDs? It’s not something I’m familiar with but a do understand the concept. I’m guessing that research is the key to getting this right more often than not. What’s your take on this as an investment? It certainly looks like it would require regular maintenance to be successful.

    • While they look interesting, I do not trade CFDs. At this time I don’t see a role for them in my portfolio or my style of building the portfolio. As you note, this type of investment requires regular maintenance, and I would add, adequately educating one’s self before engaging.

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