Introduction to CFDs Guide

IntroductiontoCFDsCFDs are one of the fastest growing financial trading instruments globally. They provide a wide range of trading opportunities for all styles of traders and have many advantages over other products;

  • Profit in volatile Markets
  • Short Sell
  • Leverage
  • Protect current portfolios
  • Increase you market exposure with minimal capital
  • Diversify into global markets and products
  • Cost effective trading
  • Simplicity


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Our ‘Introduction to CFDs’ guide covers many more educational topics;

Features of a CFD

Understand how the features of CFDs are beneficial to all traders and how they may suit your trading style in the following areas:

  • What is a CFD
  • Leverage
  • Margin Call
  • Initial Margin
  • Variation Margin
  • Commissions
  • Financing
  • Scalping

Advantages of Trading CFDs

Discover the benefits of CFDs over other equity and derivatives trading products:

  • Leverage
  • Short Selling
  • Lower Transaction Costs
  • Simplicity of the product
  • Hedging

CFD Types

Learn the inner workings of the two types of CFD providers in the market and their advantages and disadvantages:

  • Market Makers
  • Direct Market Access (DMA)

CFD Fully worked Examples

Learn how the following concepts are calculated and understand their inner workings with real life trading scenarios completely worked for you:

  • Long Trade
  • Short Sell
  • Margin Call
  • Margins

How to Manage Risk

FPM understands the nature of CFDs being highly leveraged can create the potential for losses as well as gains. Therefore our Understanding CFDs guide will cover the following topics to help minimise these losses:

  • Hedging
  • Position Sizing
  • Risk Management
  • Money Management
  • Drawdown
  • Develop A trading Plan
  • Position Entry
  • Position Exit