A Contract for Difference (or CFD), is a contract between two parties, a buyer and a seller requiring that the seller will pay the buyer the difference between the value of an asset at the time the agreement was made and its value at present time. In effect CFDs are financial derivatives that allow traders to take advantage of prices moving up (long positions) or prices moving down (short positions) on underlying financial instruments and are often used to speculate on those markets.
Why trade commodity with MFI Forex:
- Possibility to enter long or short effortlessly, giving the trader trading opportunity both in rising and falling markets
- Fast and direct market execution with STP model
- Hedging, Scalping and EAs allowed without any restrictions
- Margin trading, where traders won’t need to put up as collateral the full notional value of the CFD
- Therefore large positions can be controlled with a fraction of the price