Contracts For Difference (CFDs) are specialised and popular Over The Counter (OTC) financial derivative products which enable you to trade on the price movement of financial assets Indices Futures Commodity Futures Cryptocurrency, Shares and Exchange Traded Funds.
They enable clients to trade freely without actually owning the underlying asset or acquiring any rights or obligations in relation to the underlying asset. The main benefit of trading CFDs is the flexibility to trade against the price movements without actually buying or selling the physical instrument.
Forex Template’s CFDs derive their price from the underlying asset. You can Ocean MarketsFXDs if you believe the price of a financial instrument is likely to go up in value (strengthen) and if you think it is likely to go down (weaken). Your profit or loss in online CFD trading is determined by the difference between the price you buy at and the price at which you sell.
There are various trading strategies that are often used when trading CFDs, that even the most unskilled trader can understand. These decisions involve a number of trading methods and the most popular are the Long vs. Short
A long position in trading CFDs is when a trader purchases the asset. This will mean that the asset will rise or see an increase in its value over the time of life of the contract. In long term trading, as it has a higher level of forecasting ability will allow traders to act on lower price market moves. Trades normally last from month to more than a year.
The short Position occurs when the trader feels there will be a decline in the assets value and a ‘sell’ is selected, however there is an intention from the trader to buy the contract back at a later stage. E.g.: A short seller’s expectation is that the price of the asset will fall over the life of the contract. If his prediction is wrong and the price of the asset starts to rise the open trade will sustain a loss, which is calculated by the difference between the opening and closing price of that asset over that time. The reverse is true should his open trade indicate that the asset chosen would decrease in value. Short term trades can allow profits from short time spans even up to minute-to-minute moves. Limiting financial costs is an advantage in short term trading.
This would be a happy medium that offers both undated futures and contracts and can be traded on short or long term CFD strategies.
Traders at Forex Template can enjoy one of the largest ranges of Commodities, Stocks and Indices compared to most brokers.
Ocean Markets Limited, Incorporated by the Saint Lucia under registration number 2024-00177 with a registered office at Ground Floor, The Sotheby Building, Rodney Village, Rodney Bay, Gros-Islet Saint Lucia.
Risk Advisory: Engaging in Forex and CFD trading involves inherent risks that may result in the loss of your invested capital. We strongly advise trading only with funds you can afford to lose. It’s crucial to fully comprehend the risks associated with Forex and CFD trading, and we recommend seeking independent financial advice if necessary. Kindly review and ensure you understand our comprehensive RISK DISCLOSURE Statement.
Restricted Countries: Ocean Markets Limited does not provide services for residents of certain countries such as the United States of America, Canada, Israel, New Zealand, Iran and North Korea (Democratic People’s Republic of Korea) or a country where such distribution or use would be contrary to local law or regulation.
Disclaimer: Ocean Markets Limited operates solely as an execution service and does not offer advisory services. Occasionally, Ocean Markets Limited may release general market insights; however, such communications should not be interpreted as advice, an invitation, or an endorsement for any financial instrument. Ocean Markets Limited bears no liability for the application of this content or any outcomes thereof. The completeness of this information is not guaranteed, and reliance upon it is at the sole discretion and risk of the user.
We encourage users to review our legal documents for further information and clarity on our operations.
Ocean Markets Limited acknowledges the critical importance of LEGAL DISCLAIMER. Accordingly, we abstain from directing our website and services towards individuals in regions where their use may contravene local laws or regulations. Users are solely responsible for ensuring compliance with applicable laws and regulations when accessing our website and services from their respective jurisdictions. Ocean Markets Limited makes no warranty regarding the suitability of the information provided on our website for all jurisdictions.
