Ever wished you could trade the markets without actually owning anything? That’s exactly what CFD trading lets you do! Whether prices go up or down, you can potentially make a profit-sounds exciting, right? If you're curious but not sure where to begin, let’s break it down in a fun and simple way.

What is CFD trading?

Imagine you’re betting on your favorite sports team. You don’t own the team, but if they win (or lose, depending on your bet), you get a payout. CFD trading works similarly-you’re speculating on an asset’s price movement without owning it. If the price moves in your favor, you profit; if it goes the other way, you take a loss. But remember, just like in sports betting, there’s risk involved too!

Why trade CFDs?

Trade almost anything From stocks and forex to gold, oil, and even cryptocurrencies—you name it, you can probably trade it as a CFD. At Deriv, you can access all these markets in one place. Plus, cryptocurrencies and derived indices are available 24/7, so the action never stops!

Make money when prices rise—or fall Unlike traditional investing, where you only profit if prices go up, CFDs let you trade both directions. Think a stock is about to drop? You can short it and potentially make money on the way down. It’s like having a financial superpower!

Leverage: Do more with less CFDs allow you to trade with leverage, meaning you can control a large position with a small amount of capital. But be careful—while leverage boosts potential profits, it can also
magnify losses. Risk management tools like stop-loss orders can help keep your account safe.

Get started with a small budget You don’t need a fortune to start. Since you’re not buying actual assets, you avoid ownership costs like taxes and fees. And with a Deriv demo account, you can practice risk-free before jumping in with real money.

Popular CFD markets

So, what can you trade? Here are some of the most exciting CFD markets:

Forex: The world’s largest market, where currencies battle it out 24/5.
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Commodities: Think gold, oil, and natural gas—assets influenced by global events.
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Cryptocurrencies: Bitcoin, Ethereum, and more. Super volatile, but super exciting!
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Stocks: Trade shares of major companies without actually owning them.
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Stock indices: Bet on the performance of an entire market sector, not just one stock

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Ready to dive in?

CFD trading offers flexibility, excitement, and plenty of opportunities-but it’s essential to trade wisely. Want to test it out?

Quiz

Which of the following is NOT an advantage of CFD trading?

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You can profit from rising and falling prices.

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You must own the underlying asset.

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You can start with a small amount of capital.

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FAQs

Are CFDs risky?

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Yes! CFDs are leveraged products, meaning they can amplify both profits and losses. It’s crucial to use risk management tools like stop-loss orders.

How much money do I need to start?

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Not much! Thanks to leverage, you can start with a relatively small amount. But always trade responsibly and never risk more than you can afford to lose.

Can I trade CFDs on weekends?

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Some markets, like forex and stocks, follow standard trading hours. But cryptocurrencies and derived indices on Deriv are available 24/7, so you can trade anytime!

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