Every week, we bring you insights into popular assets and trending market topics, helping you learn more about the investment world in simple, bite-sized pieces.
In this edition of Markets in Focus, we take a closer look at the different types of CFDs and how they work.
Exploring the World of CFD Trading: A Simple Guide
CFD trading offers access to a wide range of financial markets - including stocks, indices, commodities, currencies, and cryptocurrencies. Each category has its own characteristics and opportunities. Here’s a clear breakdown to help you navigate them.
Stocks
Stocks represent ownership in a company such as Apple, Tesla, or Nvidia.
Stock CFDs can be a good choice if you expect a specific company to perform better than the market anticipates.
Compared to indices or currencies, stocks tend to be more volatile and often react strongly to earnings results or news.
In Change, you can trade more than 200 different stock CFDs.
Indices
Indices - like the S&P 500, Nasdaq 100, or Dow Jones - track baskets of selected stocks, usually based on sector or country.
Trading index CFDs lets you capture broader market trends without focusing on individual companies.
In Change, you can trade many different indices and ETFs as CFDs.
Commodities
Commodities include raw materials such as gold, silver, oil, natural gas, coffee, or sugar.
They are driven by supply, demand, and global economic factors.
Gold is often considered a safe haven in uncertain times, while industrial commodities can rise with increased production.
In Change, you can trade many commodity CFDs.
Currencies (Forex)
Currency pairs - such as EUR/USD, GBP/JPY, or USD/CHF - reflect the value of one currency against another.
You might trade EUR/GBP, for example, if you believe the euro will strengthen versus the pound.
GBP/USD is famously called the “cable” due to the undersea telegraph cable that once connected London and New York.
In Change, you can trade more than 40 different currency pairs.
Cryptocurrencies
Cryptocurrencies like Bitcoin, Ethereum, Solana, or Litecoin are digital assets running on blockchain technology.
They offer high growth potential but are significantly more volatile than traditional markets.
In Change, you can trade many cryptocurrency CFDs.
Why Trade CFDs?
CFDs allow you to potentially profit in both directions:
- Long positions if you expect prices to rise
- Short positions if you expect prices to fall
This flexibility applies across all asset classes.
Have a great trading week - and see you next time!
