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Key Terminology in CFD Trading Explained
Understanding the key terminology in Contracts for Difference (CFD) trading is essential for both beginners and experienced traders. what is cfds are complex financial instruments that allow for speculation on price movements without owning the underlying assets. Here are some important terms that every trader should know. 1. Contract Size: This refers to the amount of the asset that is traded in one CFD contract. Knowing the contract size helps traders calculate their potential profits or losses. 2. Spread: The spread is the difference between the buying price (ask) and the selling price (bid) of a CFD. It represents the cost of trading and can vary depending on market conditions…