- 0 commission
- Tight Spreads
- 100X Leverage
- Fast Order Execution
- Safe & Secure Fund Transfer
CFD trading stands for Contracts for Differences, and it is a flexible investment instrument that enables traders to analyze a particular asset’s performance without owning the derivative financial instruments. It enables traders to quickly assess an underlying asset at a minimal cost, rather than going on to invest in an asset in an outright way.
- Through CFD trading, traders can easily save ample amounts of capital and generate quick profit from the gradual price movement of the assets.
- Traders can take advantage of the rising and falling markets at once.
An Overview of CFD Trading
CFD trading allows traders to perform a unique type of financial transaction and lets business owners trade in the price speculations of financial securities. CFD investors never possess the underlying assets but do incur revenue solely depending on the slight change in asset prices within a shorter span of time.
Advantages of Online CFD Trading in India
CFD trading provides traders with a dynamic approach to the financial markets, offering numerous opportunities to profit from different market conditions while requiring careful risk management due to the inherent risks of leverage and margin trading.
Enjoy Tight spreads
The spreads always remain low and transparent, regardless of what may have caused the sudden market fluctuations. As a trader, you will always know exactly how much you will be paying, making it the most cost-effective way to perform any sort of trading activity.
Stop Orders and Limits
With the aid of stop orders and limits, we make it easy to manage the risk and prevent you from losing more than what you exactly bargained for. This often acts as your safety net, ensuring you will definitely exit a trade if the market falls to a point where you think it is too risky, limiting your potential losses.
Nominal Margin Requirement
The most notable benefit of using CFD trading in India is the lower margin requirements. It helps traders quickly open positions for trading.
Explore Global Financial Markets
You get access to major markets around the world. Traders get a variety of trading scopes in CFD, as brokers offer currency, index, commodity, stocks, and cryptocurrency.
Why MintCFD is the best CFD trading platform in India?
- Zero Brokerage Fees
- Tight Spreads
- Choose from popular CFD instruments across the world
- Monitor, manage, and mitigate tools
- 24×7 Customer Support
- 100X Leverage
- Faster Order Execution
- Simpler Registration Process
- Free CFD Demo Account
- Exclusive CFD Trading Resources
CFD Trading Instruments Available on MintCFD
On MintCFD, you can trade these top 5 instruments. It provides various ways for traders to access different markets, hedge risks, and diversify their trading strategies.
Forex CFD Trading
Forex trading involves trading vital currency pairs like EUR/USD, GBP/USD, and USD/JPY. These forex currency pairs are highly liquid by nature and operate 24 hours a day. Thus, it is attractive for traders who directly want to speculate on the subtle movements of these currency pairs.
Commodity CFD Trading
In this type of CFD trading, Traders speculate on the price movements of commodities like gold, silver, crude oil, and agricultural products. Commodity CFD trading is popular among those who are looking to diversify their portfolios or hedge against any sort of inflation process.
Indices CFD Trading
Indices trading enables traders to speculate on the price movements of a stock market index. Some of the popular indices include those of the S&P 500, Dow Jones Industrial Average, and Nasdaq.
Stock CFD Trading
It involves speculation about the price movements of individual stocks without even owning the underlying shares. It is essential to approach it with a clear-cut understanding of the risks involved and a solid risk management strategy.
Cryptocurrencies CFD Trading
Cryptocurrency trading enables you to speculate on the price movements of digital crypto currencies like Bitcoin, Ethereum, and Ripple. This market is specifically known for its high volatility. Thus providing opportunities for significant gains and losses within a shorter span of time.
How leverage works in CFD trading?
Leverage is the ability to trade a contract for a difference even without paying for the full value of your position upfront. Rather, as a trader, you only need to have a smaller amount of money in your account to open up a position that is worth more than ever.
On MintCFD, you are eligible for 100x leverage.
CFD Trading Tips
If you want to earn a steady profit from CFD trading, then all you need to do is understand the market very well, put into effect all sorts of marketing strategies, and manage risks efficiently.
Understand the Basic
You have the option to choose Short Position and Long Position. Never stick to one, instead pick a position based on the asset behaviour.
Stay well informed about the market
Keep yourself up-to-date regarding the latest market updates, financial news, economic data releases, and events that could impact the market.
Implement risk management strategies
You can make use of stop-loss orders just to close predefined positions at a predefined level to limit the losses. Traders should spread their investments across different derivative assets just to reduce risk at once.
What is CFD Trading?
CFD stands for Contract for Differences, is an agreement between a seller and a buyer, with a Provision that the seller or the buyer would pay the price difference between the current value of an asset at the time of opening a contract and the future value of an asset at the time of closing the contract.
In simple words, this contract has a condition that the seller or the buyer would pay the price difference between the following:
- The present value of an asset at the time of opening a contract
- The future value of an asset at the time of closing the contract.
Reasoning on whether the Asset Value will fall or rise is what a CFD trader does.
How is money made through CFD Trading?
Profit in CFD is made through rightly reasoning on the price movements. There is no ownership involved in this form of trading. The prime focus is only on the price change during the trade exit and entry.
CFD Trading in India is now even better with opportunities available on MintCFD app and MintCFD website.
How CFD Trading works?
There are two modes of CFD Trading. The expert traders term them as positions: Long Position and Short Position.
- Long Position in CFD trading: It’s when you believe that the value of an asset would go up and you get into a contract, stating that the price would go up. If the price goes up at the end of the contract, the broker will pay you the difference.
- Short Position in CFD Trading: It’s when you reason that the value of an asset would come down and you get into a contract, stating that the price would come down. If the price comes down at the end of the contract, you will end up facing a loss and you will pay the difference to the broker.
Let’s assume: You are getting a CFD of Tesla Shares.
- In Long position, if the value of Tesla Shares is $5 at the time of opening the contract and if its value is $8 at the time of closing the contract, then your profit is $3. The broker will pay you the profit.
- In short position, if the value of Tesla Shares is $5 at the time of opening the contract and if its value is $8 at the time of closing the contract, then your loss is $3. You will pay the broker.
It’s simple and straightforward.
You don’t get to use, utilize, exploit or consume Tesla Shares, but you get to speculate only on its price movement. Not just shares, you can engage in stocks CFD, commodities CFD, indices CFD, CFD forex and other financial instruments.
Key Advantages of CFD Trading:
- Allows you to speculate on the price movement in both directions: down or up. You can choose as per your wish, understanding, choice, instinct and research. If the market is going down, you can choose short position and vice-versa.
- Acts as a great hedging tool. If you already own Tesla shares through a traditional trading platform and if it is going on a downward movement and if you are expecting a loss, then at that time, a Short position in CFD can help out and mitigate the loss. You will gain whatever you lose on the other side.
- Boasts its nature of easy execution and easier understanding.
- Offers its beneficial disposition to both experienced traders and beginners in trading.
- Provides an opportunity to trade even when the market is crashing, as you can go short.
- Demands a very minimum deposit requirement.
- Exposes a wide variety of assets, instead of getting clogged by monotonous trading resources.
- Evades a fixed expiry.
- Sanctions you a higher Leverage. Only around 5% of the cost is required as your capital and the rest can be utilized from Leverage. However, the loss or profit is calculated for the entire amount. Less capital, more profit. Your CFD transactions get better with leverage.
How to start CFD Trading?
After creating your CFD Trading Account, you must go through the following process for any and all trades you involve yourself in.
- Pick a Product – Product here means the instrument you are going to invest in. It can be in the form of any of the financial instruments such as currency pairs, commodities, forex and indices.
- Pick a Position – Depending on the market trends, you may pick to go Long or to go Short. Your position determines your profit.
- Pick a Price – Most of the time, it is your understanding, along with instinct that drives your decisions. However, choosing how much to invest needs critical analysis of the price movement and trends.
- Pick a Partner – It should be your first Pick. Choose the right platform that allows you to explore your trading skills, with minimal process and procedures, without maximal risks and restrictions. MintCFD is one such platform that brings you closer to your trading dreams.
What makes MintCFD the best trading platform for CFD Trading?
- Zero Brokerage fees
- No hidden charges
- 100x Leverage
- Simpler to understand
- Safer to execute
- Tight spreads
You can start CFD Trading, by opening your free account in just 4 minutes. You are just one click away from joining the best CFD Trading site.