CFD Trading – Profitable, Affordable and Just That Simple
Would you like to make money on various market assets without purchasing them? Gerchik & Co presents you the CFD, a handy and profitable trading instrument.
CFD which means the contract for difference is a financial derivative that allows an investor to profit from price fluctuations of market asset without having to purchase it
Essentially, CFD is a trade made between an investor and a market maker. The investor purchases not the underlying asset itself, but only a contract for the difference in its value from the market maker.
If the difference between the trade opening and the closing prices is positive, the market maker shall pay it to the investor.
In contrast, should the price difference be negative, this amount will be written off from the investor’s account to the benefit of the market maker.
Benefits offered by CFD
- You can earn on various assets – precious metals, stocks, indices and even cryptocurrencies just as easily.
- Controllable risks. The trade term is unlimited which means that the contract can be terminated at any time whenever it is profitable for you.
- The profit size is not fixed, and so you can make big profit on sharp price movements.
- Money can be made on both rise and slip in prices.
History of CFD Emergence
The first CFDs were traded on the London Stock Exchange at the turn of the last century. Market players have created this tool in order to make investing more affordable.
First of all, trading on the exchange used to be a remit of only large institutional investors who had their hands on huge capital, whereas CFDs unlocked such an opportunity for almost everyone.
Second of all, trading without purchasing the underlying asset is much more cost-efficient: investors did not have to pay the stamp duties, as when purchasing the stocks.
Third of all, CFDs have become a handy tool not only for a long-term, but for a short-term investment which is convenient for the majority of traders.
|Instruments||Name||Min. Ticket Size (Lots)||Max. Ticket Size (Lots)||Trading steps (Lots)||Tick Size||Tick Value (1 Lot)||Margin for 1 Contract in % of contract value||Trading Session (Server time)||Session break (Server time)||Commission for 1 lot|
|AUS_200||Australia 200 Cash Index||1||1000||1||0,01||AUD 0.01||1%||Mon. 02:50 – Fri. 23:00||daily 09:30 – 10:10 / 00:00 – 02:50||0,01%|
|CAN_60||Canada 60 Cash Index||1||1000||1||0,01||CAD 0.01||1%||Mon. – Fri. 16:30 – 23:15||n/a||0,01%|
|ESP_35||Spain 35 Cash Index||1||1000||1||0,01||EUR 0.01||1%||Mon. – Fri. 10:00 – 21:00||n/a||0,01%|
|EUR_50||Euro 50 Cash Index||1||1000||1||0,1||EUR 0.1||1%||Mon. – Fri. 09:00 – 23:00||n/a||0,01%|
|FRA_40||France 40 Cash Index||1||1000||1||0,01||EUR 0.01||1%||Mon. – Fri. 09:00 – 23:00||n/a||0,01%|
|GBR_100||UK 100 Cash Index||1||1000||1||0,01||GBP 0.01||1%||Mon. 03:00 – Fri. 23:00||daily 23:15 – 23:30 / 00:00 – 01:00||0,01%|
|GER_30||Germany 30 Cash Index||1||1000||1||0,01||EUR 0.01||1%||Mon. – Fri. 09:00 – 23:00||n/a||0,01%|
|GER_M50||Germany Mid 50 Cash Index||1||1000||1||0,1||EUR 0.1||1%||Mon. – Fri. 10:00 – 18:30||n/a||0,01%|
|GER_T30||Germany Tech 30 Cash Index||1||1000||1||0,1||EUR 0.1||1%||Mon. – Fri. 10:00 – 18:30||n/a||0,01%|
|IND_50||India 50 Cash Index||1||1000||1||0,1||USD 0.1||1%||Mon. – Fri. 04:00 – 13:00||n/a||0,01%|
|NED_25||Netherlands 25 Cash Index||1||1000||1||0,01||EUR 0.01||1%||Mon. – Fri. 09:00 – 23:00||n/a||0,01%|
|NOR_25||Norway 25 Cash Index||1||1000||1||0,01||NOK 0.01||1%||Mon. – Fri. 10:00 – 17:20||n/a||0,01%|
|SUI_20||Switzerland 20 Cash index||1||1000||1||0,1||CHF 0.1||1%||Mon. – Fri. 09:00 – 23:00||n/a||0,01%|
|ZAF_40||South Africa 40 Cash Index||1||1000||1||ZAR 0.1||1%||Mon. – Fri. 09:30 – 18:30||n/a||0,01%|
|JPN225||JPN225||1||1000||1||0.01||JPY 0.01||1%||Mon. – Fri. 02:00 – 23:15||n/a||0.1$|
|NAS100||NAS100||1||1000||1||0.01||USD 0.001||1%||Mon. 01:00 – Fri. 23:15||daily 23:15 – 23:30||0.1$|
|SPX500||SPX500||1||1000||1||0.01||USD 0.01||1%||Mon. 01:00 – Fri. 23:15||daily 23:15 – 23:30||0.1$|
|US30||US30||1||1000||1||0.01||USD 0.001||1%||Mon. 01:00 – Fri. 23:15||daily 23:15 – 23:30||0.1$|
Corporate Activities Involving Stock Indices
STP broker Gerchik & Co offers online trading of contracts on indices. The issuing companies, the shares of which are included in the index, periodically perform corporate actions i.e. distribution of dividends. This happens after the date when the register has been closed, when the number of holders of securities is determined.
Accordingly, the broker makes relevant adjustments to the clients’ trading positions:
- If the investor has an open long position on the index (for purchase) on the date of the register closure, 80% of the adjustment amount will be credited to this position at the time of the rollover. This can generate profit!
- If by this time the investor has an open short position on the index (for sale), 100% adjustment will be written off from his/her trade at the time of the rollover.
Gerchik & Co makes every effort to ensure timely adjustments. However, since the information on corporate actions comes from the third party, the broker shall not be responsible for any delays linked thereto.
CFD on Metals
Precious metals have long been known to be one of the best ways to save and increase investments. Silver and gold are always highly-valuable, highly-liquid and non-inflationary, so during the downturn in the financial market, these metals become a particularly desired «safe haven», so to speak.
At Gerchik & Co, you can profit literally from every fluctuation in quotes for precious metals using the CFDs. While the investors purchasing gold or silver can only benefit from the price increase, the CFD trading allows to make profit even when the metal prices go down.
CFD on Oil
Oil is rightly called the black gold. This asset is among the key ones in the commodity market. High volatility is typical for oil, so trading CFD on oil can be extremely beneficial for you. When exchange rates increase or decrease, the price difference becomes considerable which is the very foundation for making money on the CFDs.
The oil value is affected by the exchange rate of the U.S.dollar, the geopolitical environment (especially in oil-producing countries), information on the U.S. oil stock and many other factors. Being aware of those, you will be able to make money on the most popular raw materials asset, without even having to purchase it.
Trading CFDs with Gerchik & Co Broker: Benefits
1. The minimum value of the contract for difference is only $500. To put this into perspective, one XAU costs over $1,000, whereas at Gerchik & Co, half of this amount would be enough to earn on gold.
2. Quotes accuracy and instant order execution.
3. Wide selection of underlying assets: metals, stocks, indices, and cryptocurrencies to pick from.
4. Low marginal requirements and small commission fees.
5. Trade using the most popular trading terminal MT4 with a full selection of technical analysis tools.
Unique services from Gerchik & Co
We offer more than the traditional Forex. We offer innovations, comfort and stability.
Increases the number of profitable trades
Minimizing losses maximazing profits.
For money-making investments and profitable trading.
A vital book for traders and investors.
Develops a Trading Strategy from trader’s previous work records.
Your trading system's strengths and weaknesses.