CFD Trading. A contract for difference, otherwise known as a CFD, is an agreement between two parties (investor and CFD provider) to exchange the difference between the opening and closing price of a contract. CFDs are derivative products that allow investors to make assessments of rising and falling markets, including forex, indices, metals, commodities, treasuries and shares. CFD trading allows you to take a position on the future value of an asset whether you think it will go up or down. While this means the product is very flexible, it also requires a high level of risk management.
AvaTrade strives to give every client the ability to efficiently trade any financial product around the globe including: Shares, ETFs, Indices, Commodities and Currencies. AvaTrade is a multi-asset trading platform. Their wide coverage includes UK, US, European and Asian exchanges. Importantly, CFDs are a leveraged product. This means you only have to put down a small deposit for a much larger market exposure. Leverage comes with significant benefits and risks: your investment capital can go further, but you can also lose your deposit.
Every trader makes mistakes, so it’s a good idea to familiarize yourself with a trading environment before you invest your money. To improve your trading skills, try opening a free demo trading account with a forex company.
CFD Trading with AvaTrade
AvaTrade is a regulated forex broker, dedicated to providing its clients with tailor-made trading solutions, regardless of prior knowledge or experience. With AvaTrade you can begin trading immediately on any of they powerful platforms. AvaTrade is not only a leading global broker, but also a pioneer in the digital currencies trading market. Being among the first brokers to introduce Bitcoin, and the first to add Ethereum, Dash, Ripple, Bitcoin Cash, and Litecoin to its trading portfolio.
Why Trade with AvaTrade?
✓ Trade with confidence – AvaTrade is an internationally regulated broker.
✓ Large variety of CFD instruments – Trade commodities, indices, ETFs, stocks and bonds.
✓ Powerful Platforms – Manage your trades manual or use automated trading.
✓ Leveraged Trading – Up to 200:1 leverage on various CFDs.
✓ Powerful MT4 Platform and AvaTradeGO, the newly linked mobile app.
✓ Start trading with as little as $100.
✓ Benefit from a wide range of top traded cryptocurrencies on the market.
✓ All pairs can be shorted.
✓ Live quotes and charts for your reference.
✓ Master your trading skills – expand your horizons by entering their educational materials & daily updates.
✓ Best in class customer service – 24/5 multi-lingual live support with a dedicated account manager.
How do I make a deposit on AvaTrade account?
Deposits are accepted in your Trading Account currency (GBP, EUR or USD). Any funds received in other currencies are subject to conversion with the exchange rate imposed by their payment gateway provider.
You can make secure online payments instantly using Visa or MasterCard, Skrill, Neteller, PayPal, or Bank transfer.
The minimum deposit amount, per transaction, is $100 (or equivalent in another currency). Processing time: Instant, Fee: Free.
How to make a withdrawal from AvaTrade account?
Withdrawals are typically processed and sent within 1 to 2 business days.
Saturday, Sunday and US Public Holidays are not considered business days.
Please follow these simple steps:
In order to apply for a withdrawal, you will need to fill out a withdrawal form online through your account on MY AVA.
Once logged in on the bottom left there is a withdrawal section, simply follow the steps and your withdrawal will be processed.
Please note: In order to complete the withdrawal, the account must be verified.
How to Trade CFDs in 4 Easy Steps
2. Fund your account.
3. Choose between any CFDs contracts.
4. Start trading.
With CFD trading, you can profit from a falling market by ‘going short’ (selling), just as easily as you could profit from a rising market by ‘going long’ (buying). If you believe that a company or market will experience a loss of value in the short term, you can use CFDs to sell it today, and your profits will rise in line with any fall in price. As always, if the price of your trade moves against you, your position will result in a loss.
Trading CFDs allows you to take an equivalent position to a direct purchase for a fraction of the initial capital outlay. Normally, you would need to pay the full value of your investment to your broker. However, at AvaTrade you can trade the same market through a CFD but only be required to deposit a small initial percentage of the same equivalent value, typically margins 10%-20%, meaning that you can take a larger position for a relatively small amount of funds, magnifying your return on investment.
CFD trading gives you access to a wide range of markets that would not otherwise be available to retail investors all from one trading platform. You can speculate on the price movement of an index such as the Germany 30, UK 100 or USA 500 or trade a major currency pair such as EUR/USD or USD/JPY. At AvaTrade they offer access to over 1,000 global markets, including shares, indices and currencies. See their range of CFD markets.
As CFDs allow you to short sell and therefore profit from falling market prices, they are often used as a ‘hedging’ tool by investors as ‘insurance’ to offset losses made in their portfolios. For example, if you have a long-term portfolio you wish to keep, but feel that there is a short-term risk to the value of your investments, you could use CFDs to mitigate a short term loss by ‘hedging’ your position.
This way, if the value of your portfolio does fall, the profit in the CFDs would help you offset these losses, thus enabling you to retain your portfolio without incurring any significant loss to its overall value.
AvaTrade Licensing Information
AVA Trade EU Ltd is regulated by the Central Bank of Ireland (No.C53877). AVA Trade Ltd is regulated by the B.V.I Financial Services Commission. Ava Capital Markets Australia Pty Ltd is regulated by the ASIC (No.406684). Ava Capital Markets Pty is regulated by the South African Financial Services Board (FSP No.445984). Ava Trade Japan K.K. is regulated in Japan by the FSA (No.1662) and the FFAJ (No.1574). Read AvaTrade risk disclosure before trading Forex, CFD’s, Spread-betting or FX Options. Forex/CFD, Spread-betting & FX Options trading involves substantial risk of loss and is not suitable for all investors.