CFDs

Contracts for Difference

CFD Trading

CFD, i.e. Contracts For Differences, belong to the group of derived financial instruments, just as Forex products do. However, they are not based on currencies, their base values constitute shares, indexes and raw materials. You, as an investor, will participate in the changes - exactly reflected - in the valuation of the base value. You may speculate on the upside stock or ensure your stock portfolio by taking advantage of downside stock.

CFD trading with Foster Markets. The advantages are:

Another source of return for your financial stock portfolio
No market commission
500 different CFD
We only require a small margin

The CFD were developed so the client could benefit from the advantages of owning stock without actually really owning it. As the name of the CFD indicates, it is always a contract on a transaction based on the difference between the opening and closing value of a position. One of the advantages of CFD contracts is that, as with Forex contracts, they are negotiated on a margin. Thus you can achieve great results even with small amounts. See the benefits of CFD trading with Foster Markets.

Example of CFD Trading (shares)

You buy 100 CFD on shares at a price of €110 per share and then have a value of €11,000. Due to the margin of 5%, your investment of capital is only €550.In a few days the share value increases to €115. When selling, therefore, you will receive €11,500 obtaining a profit of €500. After deducting the purchase commission at 0.15% (€11,000 x 0.15% = €16.50), you will achieve a net profit of €483.50. Which is a profit of 88%. Bear in mind that the possible losses are the same amounts.

Any one can be a Trader..........

For many private investors, online CFD trading is much more attractive than the conventional securities trading with stocks, commodities or precious metals because of the following:

Low margins

The initial investment, which is needed to open up a position in online CFD trading, is considerably lower than at common stock trading. The reason for this is our small margin, meaning the percentage of total trade value required as a basic investment to execute your order. Foster Markets, as an established CFD broker, offers you the free choice to select your individual margin for each position. For example: with a margin of 5% and a total trade value of 1.000 US Dollars, you only have to deposit 50 US Dollars, but still participate in the changes – exactly reflected – in the valuation of the base value as if you had paid the full amount.

Benefit from rising and falling markets
Your gain or loss is only determined by the difference between purchase and selling price, therefore your chances of earning money with online CFD trading are constant – regardless of the economic market conditions. Even in times of a crisis with high volatility you will still be able make profit with falling prices (go short).

Flexible trading hours
As a CFD Broker, we own our data center, which is supplied with stock prices in real time around the clock by three different providers. From Sunday to Friday evening, when the stock markets close in the U.S., you can operate online CFD trading and are therefore guaranteed the best possible entry prices and sales opportunities.

Access to all relevant markets
German Stock Exchange, New York Stock Exchange, London Stock Exchange or Hong Kong Stock Exchange: Online CFD trading with us as your CFD broker is possible on almost all major and minor trading centers in the world. You can execute domestic and international transactions with a single account, both in established markets as well as in the emerging markets.

No market commission
We do not charge market commissions for executed transactions in online CFD trading. In addition, fair CFD brokers will continuously offer the lowest spreads in all possible market situations and always maintain a stable trading platform - without dealer intervention or re-quotes.

Hedge gains and losses
With so-called Stop-Loss or Take-Profit-Orders you can effectively hedge your positions in online CFD trading to limit your risk. Through automated transactions, open positions will be closed by your CFD broker exactly at your individually assigned rate. You will not miss an opportunity to realize your trading profits.