FX CFD Frequently Asked Questions

1. What is FX CFD?

Forex stands for Foreign Exchange, which refers to the trading of currencies of different countries. Forex CFD is an alternative means of trading on forex currency pairs, allowing you to anticipate on the movement of the underlying instrument without owning the underlying currency.

Rather than settling (or delivering) a set amount of base currency, CFDs are cash-settled, based on the difference between the opening and closing prices of a pair of currencies.

 

2. What’s the difference between FX and CFDs?

FX is one of the many markets you can trade with us. When trading FX, you’re speculating on the value of one currency against another – for example, EUR vs USD.

CFDs – short for contracts for difference – is one of the methods you can use to get exposure to forex with us. When trading with a CFD account, you don’t take ownership of physical currencies. Instead, you’ll use the derivative to anticipate on price movements.

 

3. What are the benefits of FX CFDs trading?

- Go long or short.

Take advantage of different price movements

- Flexible trading hours

Forex market is active 24 hours during the week.

- High leverage

Increase potential gains with less capital up front.

- Constant opportunities

The Forex market is a large and global with wide range of FX pairs.