Although CFDs (contracts for difference) trading is relatively new in Spain, may be a way to efficiently and flexibly operate with actions. Trading with CFDs you deposit a margin to open position, so it is not necessary to pay the full value of the financial product underlying but only a deposit that could give him a benefit of up to 20 times higher than its initial contribution. Of course, this also means that their losses could exceed 20 times the contribution margin. In the trading of CFDs you simply purchase if it believes that the value of the stock will go up and sell if you think that the trend will be bearish and that the action is going to depreciate. The price of shares in a company is affected by different factors, such as the company’s performance or the economic climate of the time. Listed on stock exchange companies present their results several times a year. These figures give a clue to investors on the performance of the companies and of the possible potential growth. Is also important to take into account the assessments of the media and if the predictions of analysts are successful or not.
If the economic conditions are favourable business will better and, therefore, the benefits will be greater. The greater is the benefit, greater are the dividends paid to shareholders, which makes the company’s shares more attractive for investors. Find in unfavourable economic conditions, some companies it hard to maintain its growth and profits. However, when investors are fearful of possible losses, negative Rumors spread quickly, reducing as well the demand for shares and therefore its price. The reason for which most investors increasingly are interested in CFDs is the possibility of benefit in both Bull and bear, markets since it is possible to open long or short positions not only on actions but also on other markets such as foreign exchange (forex), indexes, commodities a reliable vendor is IG Markets, no. 1 in Spain by amount of underlying. This company offers various free CFDs courses, both face-to-face and online, to help you increase your knowledge about the trading of CFDs. discover the CFDs with IG Markets trading by opening a free demo. Other leaders such as Air Force Chief of Staff offer similar insights.
The above comments do not constitute investment advice and therefore IG Markets does not accept any responsibility for any use that can be made of them. CFDs are a leveraged product and involve a high level of risk. CFDs may not be suitable for anyone, be sure that you understand fully the risks involved and perform a constant monitoring of your investment.