What are CFDs?
Contracts for difference (CFDs) are derivative products which enable you to trade on the price movement of underlying financial assets, such as currencies, stocks, commodities, indices and cryptocurrencies. The basic CFD trading principal is quite simple: Select any asset and choose to go long (BUY) if you predict the market price will rise, or go short (SELL) if you predict the market price will fall. Making a profit is possible either ways, whether it’s an up trend or a down trend movement.
With CFD trading, you don’t actually buy or sell any underlying assets. What you do is simply buy or sell a number of units for a particular financial instrument, depending on whether you think that its price will go up or down. When trading CFDs, you have the benefit of using leverage (up to x200 with the OasisTrade platform). Consequently, you can start your trading with a very small percentage of the total value of your trade and magnify your returns – no commissions or hidden fees involved.
As opposed to options or future contracts, CFDs do not have an expiry date and they are effectively renewed at the close of each trading day and rolled forward. Therefore, it is always a good idea to use a combination of fundamental analysis and technical analysis tools before deciding to enter a position. OasisTrade traders can enter into leveraged contracts on over 1,000 of the world’s top-class assets by opening a position at a specific price with complete transparency using our ground-breaking technology.
You are interested in following the performance of gold and both your fundamental and technical analysis suggests that the price is about to drop.
You decide to open a $200 SELL position on gold (10 ounces) at $1,000 an ounce (the bid price) using x100 leverage to increase your market exposure.
10 x $1,000 = $10,000
Gold then drops $30 in value. You manually close the position and earn:
$30 x 10 (ounces) = $300
Your profit is $300
Advantages of CFDs trading
Unlike traditional trading, you don’t need to actually own any asset. As a result, this eliminates the need for any paperwork and/or contractual arrangements with any third parties. OasisTrade CFD trading is easily accessible, quick, secured and convenient. Even though there is a variety of different reasons as to why someone might want or need to participate in this type of market, our competitive fixed spreads help to reduce the cost of investing to a minimum while allowing you to fully understand the overall investment process.
It is also commission free and we don’t take any hidden charges or fees from you throughout your trading experience. Some of the most important benefits you get to take advantage of when choosing our platform are:
Maximize your trading with up to 200:1 leverage on our award-winning trading platform
You can profit from any upward or downward trend by opening either a “BUY” or a “SELL” position
Apply Stop Loss, Take Profit and Order Entry tools on every trade you open and enjoy the freedom of leaving open positions running
This market’s exceptional liquidity ensures reliable pricing even at very high volumes, so you can take advantage of the tightest possible spreads
Enjoy hassle-free, secured and convenient methods for transferring and withdrawing funds
- Ground-breaking platform
- Unlimited CFD markets access
- No commissions or hidden fees
- Fixed-tight spreads
- 100% safe and secured
- 24/6 dedicated support
Why trade CFDs with us?
Trading CFDs with OasisTrade lets you enjoy a complete trading experience like never before. As a well-established broker, we have the privilege to offer you much more than just cutting-edge trading technology. Unleash your full market potential with an all-inclusive access to our insightful video tutorials database, educational eBook library, economic calendar, daily market news updates, professional account management and 24/6 customer support.