CFD trading the risks disclosed

Nov. 15, 2013 - PRLog -- In the world of CFD trading, there is no room for sentiment when it comes to the potential profits that are to be made. It’s as easy as picking “higher or lower” on the right stock and you are literally quid’s in. Get it wrong and the loss could see you losing your entire deposit, and then some.

To state the obvious, trading in CFD’s might not be suitable for you, but when you consider that all Contract for Difference are traded as a leveraged product, the question of “does the profit out way the risk” is a tough one to answer.

The simplicity of CFD trading (http://clkuk.tradedoubler.com/click?p=219390&a=2320878&g=21263648) is easy to like, there are no grey areas, you choose long or short (higher or lower) and you either win or lose. These are the basic rules that make trading in Contracts for Difference such a magnet for any and all would be traders, but is there more to it than that?

It is simple, by trading in CFD’s you don’t physically own the stock or bond that you are trading with so there is no initial outlay, but you still need to know what that stock is going to do. Stocks and shares are affected by a variety of factors or market variables that cause the market to rise and fall. Each change in market has a knock on effect that could potentially effect a share price or popularity of that share.

No Stamp Duty
There are benefits aside from a potential profit in trading in any CFD derivative (http://clkuk.tradedoubler.com/click?p=219390&a=232087...)s. As a CFD is described as a “derivate product” you don’t actually own the trade that you are buying and as such you won’t have to pay a stamp duty (0.5% of each trade).

Trading in any CFD could be tax efficient too, but that all depending on you making a loss as any losses you incur can (seek advice first) be offset against your Capital Gains Tax liabilities.

Where?
There are a few places that we have on MySocialTrader that offer CFD trading, so take the time to read the reviews first and check that if the CFD partner you have selected isn’t FCA regulated, that you are OK with this before registration.

City Index (http://clkuk.tradedoubler.com/click?p=219390&a=2320878&g=21263648) offer a fabulous package with regard to CFD trading and it all comes with plenty of advice, know-how and how-to with all the trimmings. Take time to read our review (http://mysocialtrader.com/review/city-index/) first then click here and head on over and start. http://mysocialtrader.com/cfd-trading/