Protect your investment - Use to cover your CFD

The considerable flexibility of trading CFD makes it a more and more popular with investors that they can add to their existing portfolios. Not only CFD providers give you access to the full range of markets, Forex, indices and stocks, but they also offer innovative products such as binaries.

The nature of CFDs is rather intended for trading short term but they are also used more strategically.

One reason why investors choose the CFD is to cover their long-term investments. The trader does not have physically CFD, this strategy is a good alternative to not having to liquidate all shares during a period of bear market or a significant volatility.

The investor can then be placed on short positions identical to those it holds in its portfolio. If the value of the stock drops, instead of selling the shares to buy them back later, it will lose money on their shares but will gain the CFD. Similarly, if the value of their shares rises then it will make money on their investments, but lose on the CFD.

This coverage simply plays the role of insurance against a loss when you invest in shares on the stock market.

CFDs can be used for other types of coverage. For example, businesses are dependent on raw materials or energy prices, they can protect themselves from currency fluctuations.

There are some advantages and disadvantages to using the CFD rather than futures or options. The cash settlement is the largest of the CFD, however they can not be traded or sold. CFDs are, nonetheless, much easier to manipulate to cover portfolios of individual investors.

Like most online stock trading, CFD trading on is via the Internet. Intermediaries CFD have led the way in developing online platforms becoming more sophisticated.

We also see the appearance of alternative stock markets-called multilateral trading facilities or Multilateral Trading Facilities (MTF), challenging the monopoly of the first existing markets in Europe. This new competition has led to a reduction in enforcement costs and better visibility of financial information.

CFD providers have been quick to realize the advantage of these new exchanges, introducing sophisticated technologies. These actions offer the best price for their clients among the leading MTF in Europe.

IG Markets offers a service order execution on CFD, international standard for financial instruments to leverage, no impact of time value. They also allow you to invest only in direct markets or the SRD, the prices of the underlying are strictly those of the reference market for CFD shares.

Choose the solution with IG Markets CFD.

The service order execution of CFD is at high risk and may result in loss of an amount in excess of your initial investment. A CFD can not itself be traded on the market, and is not suitable for any type of client. Thank you kindly ensure that you fully understand the risks inherent in such operations.