You can trade a variety of trading products with CFI including forex, and CFD (Contract for Difference) contracts on indices, energies, precious metals and stock indices. In this article, we shall provide an overview of each product so that you can gain a deeper understanding of each asset class and see which will best suit your trading plan
throughout your trading journey. Please note it’s only possible to trade CFD contracts with CFI and not physical equities, indices, currencies or commodities.
Trading Products Offered by CFI
Foreign exchange, also known as Forex or FX, is the trading of currencies from different countries around the globe. Traders aim to profit by exchanging one currency for another, in the hope that the currency they bought will increase in value in relation to the one that they sold. For example, let’s say the exchange rate for the EUR/USD pair is currently at 1.1800, and you purchase 10,000 euros for $11,800. One week later, the exchange rate for EUR/USD rises to 1.2500, and you sell your euros for $12,500, you would have made a profit of $700.With CFI you can trade major Forex pairs
, minor Forex pairs, and exotic pairs.Major currency pairs always involve the US dollar (USD) and include the world’s four traditional major currencies; EUR/USD, USD/JPY, GBP/USD, and USD/CHF. We also have what is called the “commodity currencies
” which is pairing the USD with the Australian dollar AUD/USD, the New Zealand dollar NZD/USD or the Canadian dollar USD/CAD.Any pairing that does not involve the USD is called a minor, or cross currency pair. These can include EUR/GBP, EUR/AUD, GBP/JPY, CHF/JPY, NZD/JPY or GBP/CAD.When a major currency is paired with the currency of a developing nation, this is referred to as an exotic pair.All you need to do is pick a currency pair of your choice like GBP/CAD, and trade it on our state of the art trading platform the MetaTrader 5
2.Precious Metals CFDs
Precious metals are excellent trading products to use to diversify your portfolio and should certainly be considered when formulating your trading strategy. They can be used by investors as a safe way to store an investment's value, especially during times of market uncertainty and/or high volatility. For example, when financial institutions such as banks are perceived to be unstable due to war, a political crisis, or a global pandemic. During such times, the perceived level of risk in the markets outweighs the expected reward and rates of return in the bond and real estate markets are considered to be negative due to inflation. How does this sort of trading work? There are several ways you can invest in precious metals with CFI:
•Gold CFD trading: Gold is a product which is seen by many traders as the precious metal safe heaven
•Silver CFD trading: Silver is considered a high-demand commodity, and is one of the rarest metals on earth
•Copper CFD trading: Copper is popular because of its wide acceptance in various industries and ability to melt it easily
Energies are important trading products in the commodities markets. Energy trading can be attractive to speculators because their prices experience abrupt fluctuations. Generally, it involves products such as wind power, electricity shares on the power grid, crude oil stocks, and natural gas supplies.With CFI, you can trade energies such as Brent Oil and West Text Intermediary through contracts for difference (CFDs).
Equities, stocks, or shares are trading products that enable you to buy a stake of ownership in a company. Trading equities involves buying and selling shares of a company in the stock market.Companies issue shares to the public through an initial public offering (IPO), and then investors from the public domain participate in buying the stocks in exchange for a slice of ownership in the company. Buying and selling equities give companies access to capital from investors, and the investors earn profits in the form of dividends from the company earnings if it performs well.With CFI, you can participate in buying and selling of shares from some of the best, and well-established companies around the globe through CFDs. View full list of equities you can trade with CFI..
A stock index measures how a group of stocks from an exchange perform. They give an overview of how the stock market or a section of it is performing.You cannot trade indices directly, but by using CFDs, you can bet on the rising and falling of the prices of the world’s major indices.Examples of major indices are:
View a full list of indices that you can speculate on with CFI. .
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs
. You should consider whether you understand how CFDs work
and whether you can afford to take the high risk of losing your money.
The Client agrees the Company provides execution only services and that any information, reports, opinions, commentary or other materials received from the Company directly or from its employees or through any analytical tools provided or third party research provided from the Company shall not be deemed as investment advice and it cannot be relied upon to make investment decisions.The Client commits to make their own research and from external sources as well to make any investment. The Client accepts the Company will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. The contents of this document should not be construed as an express or implied promise, as a guarantee or implication that clients will profit from the strategies herein, or as a guarantee that losses in connection therewith can, or will be limited.