Author: Livia Tay, MY
Last Updated: April 29, 2024
A Contract for Difference (CFD) is a financial product that allows traders to speculate on the price movements of an underlying asset, like stocks, indices, currencies, or commodities, without owning the actual asset.
You can profit from both rising (buy/long) and falling (sell/short) markets. The profit or loss is the difference between the opening and closing prices of the contract.
Key Features of CFDs
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Leverage: Trade larger positions with a smaller deposit (margin).
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Two-way trading: Profit from both rising or falling markets.
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No ownership: You never own the actual asset.
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Cash settlement: CFDs are settled in cash, not the asset.
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Risk: High due to leverage. Losses can exceed your margin deposit.
Lirunex’s Position in CFDs
Lirunex is a CFD broker that provides a trading platform where clients can buy or sell CFDs on various global instruments.
What Lirunex provides in CFD trading
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Platform Access: MT4 platform to trade CFDs.
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Pricing: Lirunex sets the prices for CFDs based on liquidity providers and market data.
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Leverage Settings: Dynamic leverage system based on client profile, exposure, and instrument.
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Margin Requirements: Clients must maintain margin levels to keep positions open.
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Risk Disclosures: Educating clients about the high-risk nature of CFD trading.
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Support: Customer and technical support for CFD-related inquiries.
In summary, Lirunex acts as the provider and facilitator of CFD trading services, not as an adviser. Clients must understand the risks, margin rules, and price mechanisms when trading CFDs with Lirunex.