CFDs are an efficient means of trading shares, indices, commodities, and currencies. Find out why LGI isa global leader:
- All trading is low commission with up to 400:1 leverage
- Free trading software with live charts and streaming quotes
- Test trade with all products and live prices on a Free practice account
The "CFD", or "Contract for Difference", was developed to allow clients to receive all the benefits of owning a stock without having to physically own the stock itself. For example, instead of purchasing 1,000 gram of Gold from a broker, a client could instead buy a 1 lots of Gold on the LGI CFD trading platform. A NRs. 100 per 10 gram rise in the price of Gold would confer to the client a NRs10,000 profit, just as if he had purchased the actual Gold that are traded on the exchange. A major difference is that there are no exchange fees and many of the inefficiencies of trading the underlying commodities on the exchange are eliminated. LGI can therefore offer CFDs with low commissions and very attractive margin requirements. CFDs have grown in popularity dramatically over the past few years, and we believe that this will increasingly be the preferred way to trade the financial markets.
The other major benefit of trading a CFD is the fact that the client can trade on margin. CFD trading means clients can trade a full portfolio on different commodities without having to tie up large amounts of capital. Using the example above, a client purchasing NRs 400,000 worth of CFD Commodities will only be asked for NRs 12,000 margin.
As with Shares, CFD investors benefit from normal market movements. Clients' open positions are valued in real time, with every tick of the market. Profits or losses similarly are credited to or debited from the clients account equity in real time.
Unlike physically purchasing commodities, clients only have to deposit approximately 3% of the value of the Commodities. So if you want to buy NRs 400,000 worth of commodities, you only need to have NRs 12,000 on deposit with LGI.
CFD Trading Details:
Account Opening Minimum: NRs 25,000
Lot Size: Click here for details on other CFD products
Margin Requirement: 5% on individual shares, 1% or less on other products
Commissions: Low commission-free
Free Demo Account: Click Here!
Open a Live Account: Click Here!