How to trade Australian shares using CFDs?

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1 Answer 685
Maree Graham

Answered 7 months ago

Traders interested in short-term gains have various derivatives available to them for stock market trading. CFDs, for example, offer clients to speculate on the prices of securities without owning the underlying asset. A CFD is a contract between a broker and a trader to exchange the difference in value of an underlying asset between the beginning and the end of the contract. 

A CFD is a leveraged financial product. This means that CFDs traders use margin accounts and need to put down only a fraction of the total capital required to open a leveraged position. The rest of the capital is lent to traders by their brokerage company. 

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