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How to trade stock CFDs and how much you can earn

CFD Forex broker is a trading platform that provides services for its client to enter the interbank or world level of foreign exchange turnover with the possibility of concluding transactions based on price differences within the values of one or several assets.

How to trade stock CFDs

Purchase of CFDs is made in the standard terminal broker such as http://www.avatradereview.org/. For example, it can be MetaTrader 4 or a web platform working directly from the browser, but it also works on the basis of the MT4 platform. The process is no different from the acquisition of currency in Forex.

Several important features of stock CFD trading:

  • The market does not operate around the clock, but during the relevant session, for example, you can trade American stocks from 9:30 am to 4:00 pm
  • When buying CFD, brokers also set fees – in each case, they are individual, and you need to specify them on the company’s website
  • Once again when buying CFD you will not receive dividends, and the shares will not be listed in your property, i.e. there will be no rights to attend the meeting of shareholders

The rest of the work with contracts for difference is no different from currency trading on Forex.

CFD contracts for stocks is a convenient tool that allows a trader to profit from changes in the price of shares of large companies. An important feature and advantage of such contracts are that the trader does not receive shares in the property, therefore, he does not need to meet the requirements of a qualified investor and have a large deposit.

The key disadvantage of CFD is the lack of dividends and relatively high spreads. Nevertheless, this becomes insignificant against the background of the possibility of becoming a member of the stock market and making a profit from the growth of world-famous organizations.

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