WorldWideMarkets offers online CFD trading in the leading global indices, commodities such as gold and oil, and interest rate securities. A Contract for Difference, or CFD
,is a financial contract allowing traders to potentially profit whether markets move up or down. CFDs are cash-settled based on the difference in the value of an underlying asset from the time a trade is opened to the time the position is closed. WWM offers CFDs in both Cash and Continuous Futures
CFDs are traded on margin. Margin
is the amount of capital required to be deposited with a broker before engaging in margin transactions. CFD trading can also utilize leverage. Leverage, also known as gearing, allows you to hold a position greater in value than that of your equity. For example, if you are required to have 0.5% of the value of a position, this would be 200 times leverage on your investment.
Risk management is an essential part of CFD trading. WWM offers various Risk Management
features and types of orders to help traders execute in the CFD markets.
In regards to CFD Financing
, CFD futures do not incur financing charges. Long Cash CFD positions are typically charged interest, while short CFD Cash positions normally receive interest.Dividend adjustments
are also features of certain CFD contracts.