CFDs provide traders with all of the benefits and risks of owning a security without actually owning it or having to take any physical delivery of the asset.
Since cfd are traded on margin, brokers such as Dukascopy Bank SA permit investors to take out loans in order to raise leverage or expand their positions in order to maximize profits.
Trading on margin CFDs typically provides higher leverage than traditional trading. Standard leverage in the CFD market can be as low as a 2% margin requirement and as high as a 20% margin. Lower margin requirements mean less capital outlay and greater potential returns for the trader.
Forums