Contracts for Difference

CFD Strategies to take you to the next level

Contracts for Difference are by far the most talked about financial instrument in the market today and their growth has been nothing short of amazing.

What is a Contract for Difference or CFD?

Contracts for Difference (CFDs) are exactly like trading shares except you only need a small amount of money up front. This is referred to as CFD Margin. To get your CFD trading off on the right foot, make sure you check out the CFD Tutorial, 7 CFD Trading Tips and our Free Stock Market Articles.

Contracts for Difference are remarkably simple and if you understand traditional share trading (buy BHP low, sell high and profit in between) then you will pick up CFD Trading Strategies very quickly.

The name Contracts for Difference pretty much implies exactly what happens with your trading profit or loss. It is simply the difference between where you get in and where you get out that determines your profit or loss when trading CFDs.

There are some subtle differences from share trading to trading CFDs like CFD Leverage and CFD Finance and of course it's important to understand the CFD Risks before jumping on board with a CFD Broker.

Contracts for Difference (CFDs) are traded on margin which means you only need a small amount of money up front in order to control a much larger position. For example if you wanted to buy $10,000 worth of BHP share CFDs you only require 5% margin or $500 in order to control $10,000 worth of BHP CFDs.

Supercharge your trading returns

For example BHP moves from $40.00 to $42.00 then your $10,000 position is now worth $10,500 which represents a gain of 5% (trading costs excluded in this example), therefore you have just made 100% return on your initial $500 margin outlay.

Contracts for Difference (CFDs) can also lead to losses, so traders need to be mindful of the CFD Risks, how to place appropriate stop loss orders and use sensible money management rules. If in the CFD example above BHP dropped from $40 to $38 then the CFD position would have lost $500 (trading costs excluded in this example).

Where have CFDs been all my life?

CFDs have some great benefits compared to other forms of trading.

• CFDs mirror the performance of the share or index you are trading

• CFDs are the most efficient way to HEDGE an existing share portfolio

• CFDs enable you to benefit from corporate actions or stock splits

• CFDs pay dividends just like owning the regular share (no franking credits)

• CFDs can be traded with very small outlays which range from 3% - 50%

• CFDs offer incredible leveraging opportunities normally reserved for the upper echelon of traders

• CFDs enable you to profit when the markets are falling, known as short selling

• CFDs enable traders to take advantage of short term price volatility for minimal outlay

• CFDs have no expiry date allowing you to hold a position for as little or as long as you like

• CFDs have no fixed contract size meaning you can trade as little as 1 BHP CFD

• CFD brokerage is very low and most CFD brokers charge brokerage from $10 minimum or 0.1%

• CFDs can be traded via Direct Market Access (DMA) or a Market Maker (MM) model

Taking Your First Steps...

CFDs offer you the chance to get started trading the markets with as little as $1,000 and because trading costs are so low you can have some control over the costs of running your CFD business.

LearnCFDs.com would like to welcome and thank you for visiting our site and taking the time to become a more informed CFD trader.

Trade Smart

7 CFD Trading Tips + 3 Bonus Tips
7 CFD tips and CFD trading tips to help you create a successful trading foundation. CFD and share trading tips passed down from many of the worlds best traders.

CFD Tutorial
Learn CFDs CFD tutorial will ensure you learn the key trading concepts that will enable you to trade this exciting product with confidence.

CFD Trading Strategies
Discover Contracts for Difference (CFDs) Trading Strategies to get your money working harder for you.

What is a Contract for Difference or CFD?
Contracts for Difference (CFDs) can mulitply your stock market gains when used correctly. Discover exactly what a contract for Difference (CFD) is.

Trading Contracts for Difference (CFDs) vs Trading Shares
Australia's best traders have already made the move from shares to CFDs. Have you? Discover the key benefits to trading CFDs versus trading shares.

CFD Brokers in Australia
The CFD Brokers in Australia offer a fantastic range of competitive brokerage and CFD trading platforms. Find the best CFD broker in Australia.

Why Trade Contracts for Difference (CFDs)?
Discover the tools to trade the global markets including ASX, US, Europe, FX, gold, crude oil & Silver.

ASX Top 20 Hot Stocks
The ASX Australian Stock Exchange provides a abundance of opportunity and liquidity. Should you buy, sell or hold the ASX Top 20 Blue chip stocks?

CFD Risks and how to avoid them
Learn how to avoid the common Contracts for Difference trading risks to ensure your capital remains in tact and you are in control of yoru CFD trading.

CFD Trading Examples
CFD Trading examples to make your CFD trading easy. Learn to trade Contracts for Difference confidently in a easy to understand format.

Trading Books
Shortcut your success by reading these highly recommended trading books. Share trading books, day trading books, stock trading books, forex books & CFD books.

Stock Market Book Reviews
Discover which book best suits you with these stock market book reviews. Short cut your path to stock market success by using the key strategies these authors use to achieve consistent profits.

Trading Quotes
Stock market quotes from some of the world's best traders including Jesse Livermore, Alexander Elder, Warren Buffett and Mark Douglas to name a few.

Trading Humor
Carrie Underwood trading parody is enough to make any trader roll around the floor laughing. So true. Great work from the team at TradeTheMarkets.com

Portfolio Management Software
Portfolio management software is the Holy Grail that you have been looking for. Establish your edge in the markets and trade confidently.

Short Selling for Rapid Profits
Short sell your way to massive profits. Unlock the keys that sophisticated traders and hedge funds use to profit as the market is falling.

Stock Trading Secrets Exposed
Trading secrets that will explode your bank account overnight. Yeah right! Trade smart. Discover the trading foundations the pro's use.

Investing money to make money - 9 rules to keep you safe
Investing money to make money is everyone's goal but first and foremost you need to protect your capital. Discover the best forms of defence to keep you safe.

Is CFD trading a sophisticated form of gambling?
Many believe CFD trading is just another form of gambling similar to the horse races or the Casino. Find out the truths and discover how to trade safely.

Trading safely with Guaranteed stop losses
Do the professional traders use guaranteed stop losses or are they just another way to suck more brokerage from your account?

CFD Order Types
CFD order types are important to be familiar with and to ensure your CFD broker is placing the correct CFD order for each of your trades.

Contracts for Difference (CFDs) Order Tricks
CFD order tricks explain exactly what some CFD brokers will do to take your money. It's Vital you understand the CFD order tricks to keep more money in your pocket.

Trading Websites
Trading Links & Resources to assist you in finding your edge in the markets. There are hundreds of sites out there & LearnCFDs.com has made a shortlist of the best.

Understanding CFD Leverage
CFD leverage is vital to your long term trading success. You need to harness the power of CFD leverage to get the most out of this incredible product.

Metastock Data
3 week free trial to end of day Metastock data for stocks, futures and forex markets. Clean and adjusted Metastock data provided by real traders.

Metastock Data Errors
Metastock data errors could cost you thousands of dollars. Don't rely on cheap and nasty metastock data providers. It will cost you.

How to Calculate CFD Financing Rates
CFD finance is easy to calculate once you know how. Trading CFDs can multiply your returns and give you access to far greater opportunity that any other product.

History & Growth of the CFD Markets
Contracts for Difference or CFDs have a relative short history but have been instrumental in helping CFD traders earn quick returns safely and effectively.

Finance News & Business News in Australia
Get Fast and up to date Finance News and Business News. Be first to get the latest finance and business news from Nine MSN Australia.

  Back to Top

LearnCFDs risk warning. It is important to note that CFDs are geared trading products and can result is losses far greater than your initial deposit. As a result CFDs may not be suitable for everyone so you need to seek professional financial advice to see if this product is for you. LearnCFDs.com is not a licensed investment advisor and do not give financial advice of any description and as such you should not take any information on this site as financial advice. All examples given on LearnCFDs.com are for illustration purposes only. The information contained on this website has not taken into account your personal financial situation or needs so please do your due diligence before deciding on CFDs or any product mentioned within. For further information please view our disclaimer and privacy policy.