CFD, short for Contract For Difference, is a derivative financial instrument enabling you to gain exposure to financial markets without physical ownership of the underlying asset. Being a derivative means the price is derived and moves in line with the underlying asset.
A CFD can be viewed as an agreement between you – the trader and the provider – to exchange the difference in value between the opening and the closing level of a particular contract.
KGI Contrax® CFD’s have no expiry date, meaning that you decide when you want to close out your position, at which point the diffv erence in value will be exchanged (i.e. profits paid to you, losses deducted from your account). Click here to see a list of KGI Contrax® CFD Features!
CFDs enable you to potentially profit from the market movements with only a fraction of the total position value as deposit. This is known as leveraged trading, whereby only a portion of the total value needs to be deposited in your account in order to open a trade.
Trading CFD’s with KGI Contrax® not only allows you to gain exposure in positions that have larger value than the initial deposit but we also enable you to control the extent of leverage you want to use on every single trade from the deal ticket itself.
KGI Contrax® CFDs gives access to a wide variety of markets. You can trade both in rising and in falling markets, depending on your point of view of the future price movements. Since you do not trade the underlying asset, the costs usually associated with the physical ownership, such as account management fees, commissions or Goods and Services Tax(GST) do not apply with KGI Contrax CFDs. This effectively lowers the trading costs accordingly.