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What is CFD Trading?

Trading CFDs is becoming increasing popular among traders, and is a widely offered type of trading among all of the top online brokers. So, what exactly is CFD trading? CFD stands for Contract for Difference. This is a particular type of derivative offered by brokers whereby you are trading on the difference in price of…

Trading CFDs is becoming increasing popular among traders, and is a widely offered type of trading among all of the top online brokers. So, what exactly is CFD trading?

What is a CFD?

CFD stands for Contract for Difference. This is a particular type of derivative offered by brokers whereby you are trading on the difference in price of an asset between when you open the trade, and when you close the trade, though you are not actually purchasing the underlying asset.

One of the big attractions of this type in investing is the flexibility it allows for. With traditional trading, you are tied to buying the asset basically for it to move in one direction, up. With CFD trading though, you choices are much more open. You can speculate on movements up or down when you buy in to the contract. Here we will take a more in-depth look at how CFD trading works, and the tools you have at your disposal when trading.

Going Long or Short in CFDs Trading

This ability to go long or short is a key benefit which CFDs trading has available that is not available in a more traditional sense of trading without the use of options, or possibly investing in a complex ETF or other type of fund.

Going long on a CFD means that you believe the asset you are investing in will go up in price. Therefore you would place a “buy” order for that asset.

On the other hand, going short on a CFD means that you believe the asset you are investing in will go down in price. In this case you would place a “sell” order for that asset.

In both cases, you profits from trading CFDs will be calculated only when you close the position. At that point of closing, you will make a profit or loss for the difference in price.

Example

You see Tesla is currently priced at $440 per share, and you believe the value will increase. In this case to make a profit you would “buy” Tesla. If the price at closing has gone up, then you will profit. If it has gone down, you make a loss.

Similarly, if you see the Euro currently valued at $1.17 against the USD, and you think this will go down, then you open a “sell” position with your CFD. If the price Euro does then decline below $1.17 then you will make a profit. If the price goes up though, you will make a loss.

As you can see, going long is effectively betting that the price of the asset you choose will go up, whilst going short is forecasting the price of the asset will go down. You can also see from this example that there are usually a host of assets available from the top CFDs brokers that you can trade. These usually include many forex pairs, stocks, commodities, bonds, and even cryptocurrencies.

Using Leverage in CFDs Trading

As well as the flexibility you can enjoy with CFD trading, you can also benefit from trading on leverage. All CFD trading is done on leverage. This means that you only have to pay a small amount of the contract cost up front.

Leverage increases your trading power, in that you can open large positions with a smaller amount of capital. For example, if your broker allows a leverage of 30:1 (the maximum amount allowed under CySEC regulations in Europe, then you could open a $30,000 trade with a cash balance of $1,000.

Leveraged trading can be great for giving you essentially more buying power as a CFDs trader, but you should also remain mindful that, while the potential rewards are magnified, so too are the risks. Losses can mount quicker the higher leverage you use, so you should always ensure that you have sufficient funds and employ a solid risk management strategy.

What is the Margin and Hedging?

Leveraged trading of CFDs can also be referred to as margin trading. The margin comes in two different forms. Firstly, this is the amount of money you must deposit initially in order to open a leveraged trade. This could be between 2% to 50% of the trade size depending on the leverage ratio. Then, you may have to deposit a further margin if a trade is going against you. In this case, you may receive a margin call from the broker. This is asking you to deposit more funds if you wish to keep the position open.

CFD trading can also be a great way to hedge against any other holdings you have in your portfolio. Traders will often use CFDs in this way since it is quick and easy to go short on particular assets. For example, if you have a holding of Apple shares in your stock portfolio but fear they may start losing money, you could offset this by opening a CFD which shorts Apple.

The Process of Trading CFDs

With a clear understanding of the background, you will be ready to trade CFDs. Here there are a few points to consider, and steps in the process to complete when making your trade.

One of the first things you will commonly notice is that there is often a buy, and a sell price. The sell price will always be slightly lower than the current market price, and the buy price slightly higher. This price difference is the broker spread, a small profit which they make on your trades that is typically kept as competitive as possible.

Another point to note is that CFDs trading is done in lots. You will need to be aware of the lot size on an asset before opening your position. These can vary depending on the asset, though shares CFD trading is usually 1 share per lot.

When it comes to how long you need to keep a trade open for, this is also completely up to you when trading CFDs, though you should double check with your broker for any overnight fees which are charged if you keep a position open overnight.

Where to Trade CFDs

There are many places to trade CFDs online. We currently recommend the following:

Etoro –  A multi-regulated broker trusted by millions of users. If you wish to learn more read our Etoro Review.

AvaTrade – They provide CFD trading in cryptocurrency, stocks, indices, commodities, bonds, and ETFs. Read our AvaTrade Review.

XM – They offer over 1200 assets to trade, including more than 1100 which can be traded as CFDs. Read our XM Review.

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RoboForex adding EOS Cryptocurrency

RoboForex adding EOS Cryptocurrency

RoboForex announced today adding EOS, a cryptocurrency which is now available for trading with the broker on both MT4 and MT5 platforms.

Roboforex added EOS CryptocurrencyCurrently, RoboForex clients have 7 crypto instruments to choose from.

RoboForex keeps expanding its crypto portfolio.

The latest addition is EOSUSD, which is already available to the clients through MT4 and MT5, alongside with six other crypto pairs:

BTCUSD, ETHUSD, BCHUSD, DSHUSD, LTCUSD, and XRPUSD.

The EOSUSD trading conditions are the following:

  • minimum lot size: 100,
  • minimum increment: 0.01,
  • leverage 5:1.

EOS is a cryptocurrency that was introduced in 2017 and is based on blockchain and smart contracts. Its key features are scalability, decentralized apps, and huge throughput (a few million transaction per second).

This is another step towards developing our crypto portfolio.

Our clients do value the flexibility and state of the art technologies we offer them As for us, our mission is meeting their expectations and constantly improving the trading conditions by opening the door to new instruments and opportunities.

says Denis Golomedov, ;Marketing Director at RoboForex.

Roboforex and Cryptocurrency

This Broker has been on the forefront of crypto trading on the Metatrader 4 and Metatrader trading platforms from the beginning and pushing for more and more trad-able assets to be added to their offering .

it took this broker a little bit of time but now that they got them selves into the cryptocurrency trading arena they come to lead the pack. this in combination with their the trading platforms they are offering makes this a broker to take notice of.

as yet there are not enough brokers that offer metatrader 5 and especially one where you are able to trade bitcoin ethereum, litecoin and now also EOS.

About RoboForex

RoboForex is a brokerage company catering to clients from various countries. The broker’s focus is providing the traders with access to its own financial market platforms.

RoboForex Ltd is a licensed company (License No. IFSC/60/271/TS/17).

 

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Local bitcoin Trader Jailed for Money Laundering

Indicted: Local bitcoin Trader Jailed for Money Laundering

Local Bitcoin trader, Theresa Lynn Tetley, also widely known as Bitcoin Maven has been indicted for indulging in illegal bitcoin-for-cash transactions. According to the Central District of California, the LocalBitcoins.com trader has been sentenced to 12 months in prison.

She has also been handed a three-year supervised release and a $20,000 fine. A former real estate investor and stockbroker, the court ordered her to relinquish $292,264.00 in cash, 25 assorted gold bars, and 40 bitcoin.

money launderingTetley pled guilty to one count of operating an unlicensed money exchange business, and another related to money laundering. Her case is the first of its kind in the Central District of California.

Tetley was procedurally supposed to register her business with the Financial Crimes Enforcement Network, an agency of the United States Department of the Treasury.

The agency is responsible for analyzing transactions to curb money laundering and related financial crimes. She also failed to implement standard anti-money laundering protocol, including reporting of certain financial sources as per the requirements of this type of business.

Tetley is said to have traded over $6 million for clients within the United States and charged higher rates as compared to other traders within the LocalBitcoins platform.

Also noted in the court documents was that Theresa Lynn laundered bitcoin for a customer who had been suspected of having acquired the cryptocurrency through illegal activities, including drug sales on the dark web.

She also carried out a bitcoin to cash transaction for an undercover agent who had explicitly declared that his bitcoin was tied to narco-trafficking operations.

According to the report, Tetley’s service was responsible for fueling the growing use of cryptocurrencies to launder money and supported a black market system set up purposely to circumvent the law.

The organizations involved in her investigation included the IRS Criminal Investigation and the Drug Enforcement Administration.

Just One of Many

That said, the government has been committing significant resources to counter the crypto – dark web menace, and earlier this month, a major sting operation was carried out against a major money laundering network. Thirty-five suspects were arrested.

One individual, identified as John Edward Monette, was charged with Conspiracy to Distribute a Controlled Substance. He was also alleged to have carried out numerous bitcoin for cash exchange transactions on the dark web, most of them in 2017 and totaling about $19,000.

Another dark web vendor busted during the operation, Ryan Farace, 34 was indicted for being involved in an alprazolam tablets manufacture and distribution scheme.

He sold the drugs on the dark web, with all transactions being made in bitcoin. Additional digital currency money laundering transactions were made to conceal the sources.

Article Originally Published:

By ELIZABETH GAIL at Coincentral

 

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Why You Need to Get Onboard With Blockchain!

Why You Need to Get Onboard With Blockchain!

Blockchain tech – so revolutionary in nature that some are calling it the “new internet.” It has applications in just about every industry, and has completely altered the way we think about internet security, the processing of information, and the speed of transactions.

Blockchain is the technology that supports the digital currency  or cryptocurrency called Bitcoin –

however this is not what it is really about as it has a far wider scope of applications and is being commercialized in a growing number of areas.

It has generated much interest in technology circles and beyond, because of the new possibilities it opens up in financial services, the public sector and other areas.

According to sites like BitFortune.net, blockchain tech is definitely worth keeping an eye on due to the myriad of benefits it provides.

Blockchain and Bitcoin are not the same thing – Bitcoin is implemented using blockchain technology, but blockchain technology can be used in contexts much wider than Bitcoin or other cryptocurrencies. so when we are talking about the blockchain we are talking about a combination of a number of technologies, these including:

  • Distributed ledgers.
  • The blockchain data structure.
  • Public key cryptography.
  • Consensus mechanisms.

Part of what makes it so exciting is that it is completely open source. As a result, there are already a number of interesting blockchain apps, and the number is growing daily.

The technology is so secure that it is already being used by DARPA to secure military data. Various governments around the world are working on ways to use the tech to protect their own data.
The tech is tamper-proof, and the data stored within it is permanent. It cannot be erased or altered, and this is what makes it so enticing to those needing more secure networks.

But there is more, folks. (Okay, so that sounds a bit like an infomercial, but the benefits are real nonetheless.) Transactions can speed across the network – taking only as much time as it takes for them to be authorized.

The blockchain cannot be described just as a revolution. It is a tsunami-like phenomenon, slowly advancing and gradually enveloping everything along its way by the force of its progression.

William Mougayar

The system runs without the need for an intermediary, and this reduces the time it takes to execute transactions. This, and the unique way that the tech works, means that costs are significantly reduced as well.

What makes it so revolutionary is that the information is spread across every computer within the network. With Bitcoin, that means the data is securely “backed up” over thousands of computers.

Now, it is unlikely that banks will entrust their data to a public network in the same way, but they have been working on creating networks of their own instead.

The potential savings in terms of cost and time are extensive. If you want to learn more about these savings, check out the infographic below.

 

Why You Need to Get Onboard With Blockchain!


Why You Need to Get Onboard With Blockchain!


Visit bitfortune.net . for more interesting Infographics

Guys did an amazing job and was allowed to share.


 

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