Why Trade CFDs

The ability to use leverage to enhance investment

You can build larger positions without having to provide the total amount of investment required. We provide leverage for a variety of CFDs, with a maximum leverage rate of 1:500. Like spot FX, we do offer our clients direct access to Tier 1 liquidity. Gain instant, low-cost Straight-Through Processing (STP) of your orders at razor-thin spreads, as well as powerful trading features unmatched by any other FX platform on the market. Get real-time executable streaming quotes for CFDs on Commodities and major Indices like DJA, Nasdaq, DAX, Nikkei etc.

Making transactions/trades according to the global financial market trends

Through the use of your XMs account, it is easy to buy and sell crude oil or to invest in global equities through buying and selling CFDs on Indices.

Whether its a falling market or rising market, you have the opportunity to profit. You can take advantage of CFD trading for both long and short transactions. If you believe the price of an asset will fall, you can now use CFDs to short (sell), and then again in the future expect to buy back at a lower price. In some cases, the moving direction of transaction prices may differ from your expectations, In this case you will result in a loss.

Flexible contract size

You can select the number of units traded. Unlike the other various financial markets, CFD investors do not have a contract subject to a predetermined size.

What are Contracts for Difference

The difference between where a trade is entered and exited is the contract for difference (CFD). A CFD is a tradable instrument that mirrors the movements of the asset underlying it. It allows for profits or losses to be realized when the underlying asset moves in relation to the position taken, but the actual underlying asset is never owned. Essentially, it is a contract between the client and the broker. Trading CFDs has several major advantages, and these have increased the popularity of the instruments over the last several years.

CFD trading is OTC based, it is not traded within a financial exchange. XMs is offering CFDs for Indices and Commodities.

How does the CFD market work?
CFD is an open ended contract. If You have not closed your positions at the closing time of the transaction date, the positions will be carried on to the next trading day. At this point, the interest payments or interest acquired is obtained. (depending on whether you hold more than one order or an empty list). As long as you maintain a stable enough usable margin, you can indefinitely hold your opening.

Margin and the CFD Market
CFDs are currently a very popular margin product.

CFDs provide much higher leverage than traditional trading. Standard leverage in the CFD market begins as low as a 2%. Lower margin requirements mean less capital outlay for the trader/investor, and greater potential returns. However, increased leverage can also magnify losses.

Because CFD allows you to commit trades without the requirement of full funding, you need to pay the cost of credit for the long positions, or for short positions you will collect interest.

Instruments List

METALS

INSTRUMENT

TRADING HOURS (GMT)

CLOSED HOURS (GMT)

STANDARD spreads

PRO spreads

D30EUR

Daily 06:00 – 20:00

None

6+ pips

3+ pips

E35EUR

Daily 07:00 – 15:30

None

6+ pips

3+ pips

E50EUR

Daily 06:00 – 20:00

None

6+ pips

3+ pips

F40EUR

Daily 06:00 – 20:00

None

6+ pips

3+ pips

100GBP

Daily 06:00 – 20:00

None

6+ pips

3+ pips

225JPY

Daily 23:00 – 20:15

Daily from 20:15 until 23:00

6+ pips

3+ pips

H33HKD

Daily 01:15 – 08:15

Daily 04:00 – 05:00

6+ pips

3+ pips

200AUD

Daily 22:50 – 21:00

Daily 05:30 to 06:10

6+ pips

3+ pips

U30USD

Sunday 22.00 – Friday 20.15

Daily 20.15 – 20.30; Daily 21:00 – 22:00

6+ pips

3+ pips

NASUSD

Sunday 22.00 – Friday 20.15

Daily 20.15 – 20.30; Daily 21:00 – 22:00

6+ pips

3+ pips

SPXUSD

Sunday 22.00 – Friday 20.15

Daily 20.15 – 20.30; Daily 21:00 – 22:00

6+ pips

3+ pips

OILS

INSTRUMENT

TRADING HOURS (GMT)

CLOSED HOURS (GMT)

STANDARD spreads

PRO spreads

XAUUSD

Sunday 22:00 – Friday 21:00

Daily from 21:00-22:00

6+ pips

3+ pips

XAGUSD

Sunday 22:00 – Friday 21:00

Daily from 21:00-22:00

6+ pips

3+ pips

Crypto-currencies

INSTRUMENT

TRADING HOURS (GMT)

CLOSED HOURS (GMT)

STANDARD spreads

PRO spreads

USOUSD

Sunday 22:00 – Friday 21:00

Daily from 21:00-22:00

6+ pips

3+ pips