CFDs and Forex Trading
You can find principles of trading Contracts for Differences (CFDs) and Forex bellow...
Contract for Differences (CFD)
A contract for differences (CFD) is an arrangement made in a futures contract whereby differences in settlement are made through cash payments, rather than by the delivery of physical goods or securities. CFDs provide investors with the all the benefits and risks of owning a security without actually owning it.
Forex, also known as foreign exchange, FX or currency trading, is a decentralized global market where all the world's currencies trade. The Forex Market is the largest market in the world. It is the market where currencies are traded. Each day, more than 4 trillion dollars are exchanged.
Why trade Forex?
24 hour Market
The Forex market is open 24 hours a day, so that you can be right there trading whenever you hear a financial scoop.
Unlike the stock market, a smaller market with tens of thousands of stocks to choose from, the Forex market revolves around more or less eight major currencies. A narrow choice means no room for confusion, so even though the market is huge, it’s quite easy to get a clear picture of what’s happening.
The enormous volume of daily trades makes it the most liquid market in the world, which means that under normal market conditions you can buy and sell currency as you please.
The Market cannot be cornered
The colossal size of the Forex market also makes sure that no one can corner the market. Even banks do not have enough pull to really control the market for a long period of time, which makes it a great place for the little guy to make a move.
Use technical analysis (indicators on charts) methods from other markets like equities.