A Contract For Differences (CFD) is an arrangement made in financial derivatives trading where the differences in the settlement between the open and closing trade prices are cash settled. There is no delivery of physical goods or securities with CFDs.
Trader benefit from the difference between the opening price and the closing price. CFDs allow investors to easily take a long or short position or a buy and sell position.
The foreign exchange market (Forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines the foreign exchange rate. It includes all aspects of buying, selling and exchanging currencies at current or determined prices. In terms of trading volume, it is by far the largest market in the world, followed by the Credit market.
Precious metals currently traded on the commodity market include gold, platinum, palladium and silver which are sold by the troy ounce. One of the main exchanges for these precious metals is COMEX.
Industrial metals are sold by the metric ton through the London Metal Exchange and New York Mercantile Exchange. The London Metal Exchange trades include copper, aluminium, lead, tin, aluminium alloy, nickel, cobalt and molybdenum. In 2007, steel began trading on the London Metal Exchange.
A stock index or stock market index is a measurement of a section of the stock market. It is computed from the prices of selected stocks (typically a weighted average). It is a tool used by investors and financial managers to describe the market, and to compare the return on specific investments. Indices include major markets such as S&P 500, Dow Jones 30, Dax 30 & Cac 40.
Agriculture Commodities used to be defined as materials that were consumed, like livestock and corn, coffee and Cocoa. Most commodities are traded on the futures markets and require large capital and market knowledge as you need to decide a date in the future that the assets will climb or fall. Trading commodity based CFDs have simplified the process and opened these assets to many traders.