CFD, or Contract for Difference, is a financial derivative offered by Elite Fx Pro that allows traders to speculate on price movements across various financial markets without owning the underlying asset. Here’s a detailed explanation of CFDs on Elite Fx Pro:

How CFDs Work:

Contract Agreement: A CFD is a contract between the trader and Elite Fx Pro to exchange the difference in the value of an underlying asset (such as stocks, commodities, currencies, indices, or cryptocurrencies) from the opening of the contract to its closure.

Speculation on Price Movements: Traders can speculate on whether the asset’s price will rise or fall. You can take a long position (buy) if you expect the price to increase, or a short position (sell) if you anticipate a decrease.

No Ownership of the Underlying Asset: Unlike traditional investing, CFD trading with Elite Fx Pro allows you to profit from price movements without actually owning the asset, enabling you to benefit from both rising and falling markets.

Key Features of CFD Trading with Elite Fx Pro:

Leverage: CFDs on Elite Fx Pro are traded on margin, allowing traders to control larger positions with smaller capital outlays. This can amplify potential profits but also increases the risk of losses.

Bid/Ask Spread: CFD pricing is based on the difference between the buy (ask) and sell (bid) prices, with the spread representing Elite Fx Pro’s commission.

Flexibility: Elite Fx Pro offers flexible trade sizes, allowing you to open and close positions based on your risk tolerance and strategy.

No Expiry Date: Unlike options or futures, CFDs with Elite Fx Pro have no expiry date. Positions can be held indefinitely, as long as the trader maintains sufficient margin to support the trade.