What are CFDs?
A CFD is a contract for difference. It is a form of financial instrument that allows you to invest on a global asset without purchasing the asset itself. CFDs are a simple, flexible and transparent form of online trade.
When you open a CFD trade on an asset, your goal is to profit from changes to its market price. Your profits are calculated as the difference between the asset price when you open a position, and the asset’s price when you close the position.
MagnaSaleLtd traders can boost their investments on individual assets by up to x200 using leverage. The use of leverage allows you to increase your market exposure and potentially earn higher profits with a smaller initial investment.
One of the big attractions of CFDs is their simplicity. You can open a CFD trade on an underlying asset either as a Buy or a Sell position.
Buy If you expect an asset price to rise open a BUY position.
Sell If you expect an asset price to fall open a SELL position.
An Example of a CFD Trade
You buy USD 250 with Euros. After a week, you exchange the dollars back to euros, making a profit of $75.
How is this possible?
When you first bought the $250 a week ago, the USD market price was 0.9 EUR. Now, the USD market price is 1.2 EUR. This 0.3 price movement earned you $75.
You profited by following the basic market principle of buying the dollars at a low rate and selling them back at a higher rate. If you had leveraged your initial investment your profits would have increased in direct proportion to the leverage that you used.
$250 x 200 leverage = $50,000.
$50,000 x 0.3 price movement = $15,000
If you correctly predicted the market performance of the asset, you may make substantial profits, particularly if your trade is leveraged. If your investment does not succeed, you will only lose the funds allocated to that particular trade. You will never be subjected to any further debts or liabilities.
Why Trade CFDs?
MagnaSaleLtd offers modern traders a low-cost investing environment, where fixed spreads have replaced old fashioned fees, commissions and hidden charges. When you trade CFDs, you can follow every stage of your investment and see all your potential profits, losses and expenses at a single glance. MagnaSaleLtd operates a slimmed down online brokerage with few of the costs that were associated with the old style investment houses and stockbrokers. These savings are passed on to our traders.
Traders at MagnaSaleLtd have instant access to up to x200 leverage. The only condition is that you maintain a sufficient margin reserve in your trading account to cover your leveraged trades. Leverage allows you to multiply the volume of any trade and potentially increase your profits by the same proportion.
When you trade at MagnaSaleLtd you can open leveraged trades on nearly 1,000 financial assets such as forex, stocks, commodities, indices and cryptocurrencies.
Advantages of CFD Trading
Unlike traditional trading, you don’t need to actually own any asset. As a result, this eliminates the need for any paperwork and/or contractual arrangements with any third parties.
Trading in CFDs with MagnaSaleLtd is as easy as 1-2-3: Just register with your details, fund your secure trading account and start investing instantly.
LeverageLeverage enables you to gain a large exposure to any financial market with only a small amount of your capital. By doing so, you are able to increase your overall profits only because they are based on the total investment amount of the position.
DiversificationSpreading your investments across different asset classes creates a well-diversified portfolio, lowers the volatility of the market with direct relation to your trades and reduces your overall risk exposure.
Risk managementExercising good money management is always possible thanks to the stop loss/take profit parameters. By automatically closing any open position in case the price either drops or rises beyond a predetermined point, you can continuously maintain your risk levels conservative.
Profit opportunitiesIt is possible to profit from CFD trading in both rising and falling markets. You can either open a SELL position and profit as the asset price drops or open a BUY position and profit as the asset price rises.
Who Can Trade CFDs?
Online CFD trading is already a highly popular form of investment with millions of traders worldwide. Almost anybody can trade CFDs if they are willing to apply the basic principles of risk management. The MagnaSaleLtd online Education Center contains all the learning tools and educational resources that you need to begin online CFD trading.
Many of MagnaSaleLtd top investors signed up as absolute beginners with no experience of the financial markets. They used the Education Center and free Demo Account to master the basics of CFD trading. CFD traders range from novice investors who trade part time, to expert investors who manage complex personal portfolios on a full time basis. The MagnaSaleLtd platform gives you the freedom to set your own financial goals and manage your own investments.
- Open a trading account
- Fund your account
- Start Trading
- Open a trading account
- Fund your account
- Get a premium training package and learn to trade