CFD

The term CFD stands for "Contract for Difference", and is a contract used to represent the price movement of financial instruments.

Contract for Difference

In Forex terms, this means that, instead of buying and selling large amounts of currencies, you can benefit from price movements without having to own the asset itself. These CFDs are also available on stocks, indices, bonds, commodities and cryptocurrencies. In all cases, they allow you to trade the price movements of these instruments without having to buy them.

You can profit from the difference between the opening and closing price of a given open position in a CFD instrument. It is important for us to emphasize that you are not the owner of the asset you trade.

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¿Why trade CFDs with AtivaTrade?

Trade with confidence

Ativa Trade is an Investment Advisor regulated in the Republic of Panama.

Wide range of CFD instruments

Trade commodities, indices, ETFs, stocks and bonds.

Powerful platforms

Manage your operations manually or with automatic trading.

Leveraged trading

Up to 50:1 leverage on currency pairs.

Master your trading skills

High quality training materials and daily market analysis.

First class customer service

Live multilingual support 24/5.

¿What is CFD Trading?

CFD trading is quite similar to Forex trading. When trading on the platform, you select the instrument you want to trade and execute your order. As in other trading, if you believe that the price of a certain instrument (e.g. crude oil) will increase, you will want to buy crude oil CFDs. The same goes the other way around: if you predict that the value will go down, you will sell the CFD.

Naturally, like any type of trading and investing, wrong predictions lead to loss of capital and one must be aware of the risks involved in CFD trading. There is much more to learn about CFD trading and you can do so by taking a look at our training section, where you can watch video tutorials, read articles, news updates, check out our glossary and much more.

¿How to trade CFDs with AtivaTrade?

AtivaTrade presents its clients with several trading platforms, for automatic and manual trading. By providing different features and tools, our clients can find the most convenient platform for them. We also offer the option to open a demo account, to practice on these platforms before you start trading with your own money.

However, there are two ways to trade Forex, using CFDs or Spot Forex: It involves buying and selling the actual currency. For example, you can buy a certain amount of pounds sterling and exchange it for euros, and then, once the value of the pound increases, you can exchange your euros for pounds again, receiving more money compared to what you originally spent on the purchase.

Ativa Trade offers attractive trading fees, charging only the spread on open positions. The spread is the difference between the bid and ask prices of a certain instrument. When calculating a cost per position, you have to multiply the spread by the position size. This is the spread charged for the position. For example, if the spread of crude oil is $0.03.

Most CFD instruments are traded with floating spreads, which means that they are affected by market liquidity. The more liquidity, the tighter the spread (only 3 instruments have fixed spreads at all times; gold, silver and crude oil). You can check the leverage offered and the spreads of all CFD instruments on our Trading Conditions and Charges page on the website.

Each CFD is based on a contract that defines its rates, charges, etc. Each of these contracts has an expiration date, which is the date on which the contract expires and is automatically replaced by a new one.

In order not to disturb traders during market hours, contract refinancing is carried out on weekends.