The real benefit of CFD trading is in the ability to short market

@scheng1 (24649)
Singapore
February 8, 2016 11:31pm CST
If you are a novice, you better not try CFD trading. CFD trading is an extremely high-leverage and profitable stock trading method. It is so risky and yet profitable that some countries do not allow it. Those who can trade successfully with CFD will grow $1000 to $100,000 within a year. The real benefit of CFD trading is that it allows you to short the market. When you think Google share price will go down, you can use CFD. How do you do that? Google share price is $559 now. You can sell Google at $559. When the share price drops to $500, you buy it back. That is the meaning of shorting the market. You sell first, and then buy it back. If you have $1000, and the broker allows you to borrow 9 times your capital, you will have a trading limit of $10,000. You can sell 17 shares of Google at the current share price. If you buy Google when it hits a low of $500, you would have made $1003. You have to pay the cost of borrowing money and transaction cost of trading. That means you use $1000 of your own money to make more than $900 in profit. That is why stock market traders love stock market crash. They make more money when they use CFD to short the market.
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