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WHAT IS CFD TRADING?

Contract for Difference is a popular trading instrument that allows traders to speculate on the price movements of financial assets without owning the underlying asset. The buyer and seller in CFD trading exchange the difference between the opening and closing price of an asset. If the price goes up, the buyer makes a profit, and if it goes down, the seller makes a profit.

WHY IS CFD TRADING POPULAR AMONG TRADERS?

It allows traders to leverage their positions as they can trade with a larger amount of money than they have in their account. This can lead to higher potential profits, but it also increases the risk of losses.

HOW TO TRADE CFD?

CFDs can be traded on a variety of financial assets, including currencies, stocks, indices, and commodities. Analyze the market to identify potential entry and exit points and use technical and fundamental analysis to identify trends, support and resistance levels, and other indicators.

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