With CFDs (Contracts for Difference) you can trade different asset classes such
as S&P 500 Index and WTI Light Sweet Crude Oil.
CFDs are traded on margin between a trader and a CFDs provider so as to exchange the cash difference between the opening price and closing price of a transaction. Usually less accessible to retail investors, CFDs products allow retail clients to trade shares, equity indices and futures. Without commission, trading fees, clearing fees or stamp duty, CFDs can be an alternative to trading on the forex market.
One Single Account
Traders can create an ideal multi-investment portfolio using a single trading account that enables them to trade multiple asset classes, making portfolio management and monitoring much easier.
Hedging with CFDs
Allowing you to short sell and to profit from falling market prices, CFDs can be used as a hedging tool against portfolio investments. For example, if you have a portfolio of US tech stocks which you wish to keep for long term, but feel that there is a short-term downside risk to it, you could mitigate a short-term loss by shorting the CFDs for NASDAQ.