CFDs have emerged as a trading tool which is rampantly getting popular. This is because it gives an opportunity to an investor like you to try out his skills and fortune. CFDs on eToro open investment avenues for everyone and although the process might seem complex, yet in reality this is so not the case. Moreover the CFD instruments available for investment in eToro make it all the more appealing.
What is a CFD?
CFD or Contract for Difference is an agreement between the investor and the broker to pay each other the difference in the price of an asset. This is done at two junctures. Primarily, when the contract is made and when you decide to terminate or close the contact. To put it bluntly, CFD s enable you to invest in the possibility of an asset going up or down, instead of buying the whole asset itself.
If you feel that CFDs are risky then you need to beckon yourself forward and remind yourself that and trading investment is risky, CFDs are no different.
E-toro and CFD
E-toro with its open book and Web Trader provides you with an excellent opportunity to carry out your CFD investments. Moreover it can claim certain trading instruments to its name which are unique to it. Trading with e toro is simple and easy as it is the largest social investment trading network.
It enables you to feel the fast pulse of trading markets, in this case particularly the swift-paced world of currencies. It provides you with ample opportunities to invest in your favorite companies. It equips you with the chance of decorating your portfolio with precious metals like gold, trade commodities like crude oil, stocks and indices. Thus, it brings various instruments at your disposal, helping you to trade socially and to build your profits. Besides it has a 24/7 customer support team to help you understand the ins and outs of the industry and to save you from the consequences of clue less, whimsical and impulsive trading.
CFD instruments available on the website
E toro provides with four basic trading instruments which have been mentioned above as well. These trading instruments are stocks, currencies, commodities and indices respectively.
This website brings a myriad of stocks at your disposal. These stocks fall in different niches such as technology, financial, services, consumer goods, basic materials, conglomerates, healthcare, industrial goods and utilities. You can invest in any of these stocks and amass your profits, when the price goes up, without actually buying the stock.
It offers opportunities to invest in various indices as well, such as SPX500, NSDQ100, DJ30 etc.
Various currencies can also be dealt with, using CFD trading platform, provided by this website. Some examples of these currencies are EUR/USD, GBP/USD and NZD/USD etc.
eToro also enables you to decorate your portfolio with various commodities. Some examples of these commodities are oil, gold and silver.
It has already been stated above that all trading investments carry a margin of risk and CFDs are no different. Moreover leveraged products carry a higher degree of risk. Yet eToro features various protective measures so that these risk factors can be managed effectively and can be slighted.
Therefore, if you have a trading spirit in you, then go ahead and make your investments, using EToro’s CFD instruments.