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CFD - Contract for Difference - is a contract between buyer and seller, stipulating that the seller should pay the buyer the difference between the value of an asset and its value at contract time. However if the difference is negative, then the buyer pays the seller. CFDs are financial derivatives which let traders take advantage of prices moving up, i.e. long positions or prices moving down, i.e. short positions on underlying financial instruments and are often used to speculate on those markets. Contracts for differences are derivative products which enable the trader to trade on the price movement of financial assets such as equities or indices. Index CFDs are contracts that represent the underlying index future with the profit or loss that are calculated as the difference between the purchase price and the selling price. What refers to equities, such a contract is an equity derivative that allows traders to suppose on share price movements, without the need for ownership of the underlying shares. The main benefit of trading CFDs is the flexibility to trade against price movements without actually buying or selling the physical financial assets. One can trade CFDs if he thinks that the price of a financial instrument is likely to go up in value. In online CFD trading the profit or loss is determined depending on the difference between the price the trader buys at and the price at which he sells. The start of CFD is given by making an opening trade on a particular instrument with the CFD provider. This forms a position in that instrument. There is no concrete period so the position is closed when a second reverse trade is done. Here the difference between the opening trade and the closing trade is paid as profit or loss. The CFD provider thus can make a number of charges as part of the trading or the open position. These may include overnight financing and account management fees, bid-offer spread and commission. 2.) The Unique Way of Trading – Automated Trading with NetTradeX Advisors A completely new method has come into being to help traders perform their trading activities in a very efficient way. Now it’s possible to use certain advisors for automatic trading. The advisors are known as ‘NetTradeX Advisors’ because the latter is available on the new generation platform NetTradeX. NetTradeX Advisors is available in the form of an additional terminal. It can be used either independently or simultaneously with the main terminal. In order to create the advisors you should use an integrated language of programming known as NTL+ (NetTradeX Language) which complements the functionality of the main terminal. Users can perform basic trading operations like, for example, open and close positions, set up orders, use standard charts, add chart indicators and objects for the analysis of trends in the market. Together with it, it’s possible to create user indicators and utilities. In NetTradeX Advisors with the help of integrated language NTL+ one can create three types of scripts: experts, indicators and utilities. Each type of script is intended for certain trade or analytical task: • Experts (Expert Advisor): Those are trading robots which give opportunity to automatically analyze the state of market and trade in it; • Indicators (Custom Indicator): This type of script enables you to create your own technical indicators. • Utilities: Those scripts are intended to help in performing trading as well as other activities. According to the experts and experienced traders who carefully scrutinize each innovation in Forex market, ‘NetTradeX Advisors’ opens wide opportunities for traders to easily and successfully reach their goal. As any useful technological innovation which is meant to make our life easier, more comfortable and more gainful, this trading instrument as well has all the potential to help traders come out from each situation as a winner. Using NetTradeX Advisors and NTL + will let you customize the trading system more effectively, and thereby improve your trading results.
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