There are numerous benefits to using CFD trading as opposed to traditional share trading. Although every kind of stock investment holds some risk as stock can go down as well as up, Contracts for Difference require a much lower cash outlay and capital investment than share trading. For companies wishing to trade with CFDs, it is usual to use a CFD broker, such as Central Markets, who will establish the terms of the contract and the margin rates on your behalf.
Central Markets, who are based in London, will act as a CFD broker by quoting you a price for an instrument. It is then up to you to buy or sell this share depending on what you think the market will do. Because with CFD trading you don’t own the shares, you don’t have to invest the full value of what they are worth. Instead, you are trading on the margin and this means that you have leverage. Central Markets offer margins of 5% to 10%, meaning that you have more money to invest in other stock and also get greater returns if the stock does well
The benefits of CFD trading with Central Markets are that you get access to live prices, rather than the delays that come with traditional share trading. Central Markets are focused on complete customer satisfaction and introduced the principle of Treat Clients Fairly, based on the FSA regulations. They believe that the client should be fully aware of the products available and only be offered those which are suitable, as well as making all their services easy to understand. Daily research is sent out to clients free of charge and all clients can benefit from a complete advisory service from their personal Sales Trader, as well as other fully trained staff members.
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