Benefits of Trading CFDs

Contracts for Difference, because they do not involve the actual instrument in question directly (usually traded on a centralized exchange, with all the fees and complications thereof), are ultimately more efficient, and unlike the actual purchase of, for example, equities, CFDs can be traded on a high margin.

The fact that CFDs, at DANA, are traded at a margin of approximately 1%, the trader can leverage the greatest amount of financial products possible relative to their worth. A $10,000 investment, for example, can leverage $1,000,000 of equity shares-an impossible ratio if one is actually investing in the equity markets. Margin-based trading does not lessen the trader's exposure to the market, thereby allowing the trader to reap the profits of on the amount he is leveraging, not his investment.

Just like the financial instruments in question, CFD price movements mirror the movements of the underlying financial instrument. Our exemplary and innovative trading platform keeps you updated on the value of the instrument tick by tick, with profits and/or loss being calculated live.

Just as CFDs mirror the price and movement of the physical share market, they also mirror any Corporate Actions that take place in the underlying share or index. This means that the owner of a share CFD will receive dividends, and participate in stock splits, just as they would if they owned the physical share.
 
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* The high degree of leverage that is obtainable in the trading of off-exchange FX transactions
   can work against you as well as for you. Leverage can lead to large losses as well as gains.
**Dana is compensated through the difference between the buy and sell prices.