CFDs, or Contracts for Difference, are unique trading instruments. CFDs mimic the price movements of their underlying asset, and allow traders to short-sell an asset without owning it. For example, a trader can profit from APPL stock falling by entering a sell position on the APPL CFD, all the while not holding any APPL stock share.

This innovation allows traders to profit from both buy/sell sides and provides extra opportunities in the market for traders. Additionally, CFDs are usually traded with leverage, which means the trader can borrow money from a broker or exchange to increase their position size.

On Alchemy Markets, you can trade over 300+ CFDs across 10+ asset classes, which include Forex, Metals, Indices, ETFs, and more.

Financial instruments are contracts that can be traded, such as a stock, bond, or a derivative like a CFD. They are represented by ticker symbols, which appear either as the stock’s abbreviated name (TSLA), or as a currency pair (EURUSD). There are many types of financial instruments, from Forex pairs, to metals, ETFs, and more.

CFDs, or Contracts for Difference, are unique financial instruments that mirror the price of a stock share, or any other asset. It is now commonly offered by brokers and exchanges and allows traders to speculate on the price of an asset without owning it. This means you can also short-sell a stock to profit from any downward moves.

To start trading CFDs with Alchemy Markets is as easy as 1,2,3. Simply register for a trading account, complete your KYC, and deposit funds to begin your trading journey!

We provide access to CFD products in over 10+ asset classes, and our clients can trade with the best platform in the industry. Trade with us anytime, anywhere with MetaTrader 4, available on PC, mobile, and tablet.

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CFDs are commonly traded with leverage, which is the margin you borrow from the broker to increase your position size. For example, if an asset can be traded with 20:1 leverage and you risk only $50, your buying power would be $1,000. This allows traders to open large trades, while only risking a small amount of their deposited capital.

Leverage amplifies your profits and losses by the borrowed amount, and therefore requires good discipline and risk management to use properly. Traders should understand the concepts of margin, maintenance margin, and lot size before trading with leverage.

CFD trading profits are generally considered taxable income, under capital gains or investment income categories. The specificities will vary from country to country. Please consider consulting a tax expert to ensure your CFD profits are taxed in compliance with local laws and regulations.