London  GMT  New York  Tokyo  Sydney 

Recommended CFD brokers

Core Spreads Broker ETX Capital Broker InterTrader Broker

Advertising

Range of Tradable CFDs

CFDs are renowned for being one of the most flexible trading instruments, covering as they do a variety of trading bases. Offering individual investors the chance to leverage winnings on both long and short positions, CFDs can be swiftly implemented into any trading portfolio to provide geared and potentially highly lucrative positions across instruments and indices. But what exactly can be traded with CFDs, and how do contracts for difference work across different underlying trading indices?

The range of markets in which you can trade is limited only to the selection offered by the individual broker, and not all brokers will offer the exact same selection of CFDs. Some might specialise in forex CFDs, and offer contracts exclusively on currency pairings, whereas others may have a much wider selection of contract for you to trade - it all depends on the nature of the broker you choose.

Because CFDs are largely traded off-exchange (i.e. with the broker rather than on an open market), it's very much the brokers call as to what contracts are on offer, and it is for this reason that you should look to the range of markets offered when choosing a CFD broker in the first instance. While it is perhaps wisest to focus on a narrow selection of CFDs to start with, there's no advantage in limiting your future possibilities by signing up to a niche CFD broker unless you're absolutely sure your trading strategy will keep you within defined parameters.

By choosing a broker with a wider spread of contracts on offer, you ensure a greater degree of control over your trading, and build in the flexibility to develop more complex trading strategies over time. Whether its hedging interest rates against currency pairings, or adopting a dual strategy of going long on commodity and index performance, the ability to choose between various bases provides you with the means to build a more diverse portfolio without the arbitrary restrictions of the range of contracts your broker decides to offer.

Amongst the most commonly traded CFDs available are forex, equities (i.e. shares and company securities), commodities, indices, interest rates and bonds, and we'll now look at each in turn to find out more about their interaction with contracts for difference and how you can leverage the range of tradable CFDs to best effect.

Home | Brokers | CFD School | Contact | Privacy Policy | Site Map | Advertise with us


Add to: FaceBook Add to: Digg Add to: Del.icio.us Add to: Reddit Add to: Simpy Add to: Netscape Add to: Furl Add to: Yahoo Add to: Spurl Add to: Google Add to: MSN Live

A part of

Independent Trading Solutions Limited
788-790 Finchley Road,
London,
NW11 7TJ,
England & Wales.

CFD Spy is a informational website based mostly around online trading, with a current focus towards CFDs, Forex, Stocks and Spread Betting. We aim to list and compare the top online trading brokers and brokerages available. Disclaimer: CFD Spy is meant for informational purposes only, whilst we do our best to make sure cfdspy.com is up to date and accurate at all times, we do not make any claims that the content or opinions found within are infact accurate or up to date. Any websites, company/s or services referred to/linked to throughout CFDspy.com are not directly affiliated with us, and their inclusion within CFD Spy is not meant to/ and does not convey our sponsorship or support of such company/s or website/s, furthermore, we are not responsible or liable for their availability, content, or delivery of services found therein.

Stocks, Futures , Forex &/or CFD Trading involves substantial risk of loss and is not suitable for all investors; your capital may be at risk. And as a side note, one would be wise to consider that so, for any kind of trading, and you should be fully aware of the risks involved before proceeding with any form.