What is CFD Trading?
A Contract for Difference (CFD) is an agreement between you and TrezTrade to exchange the difference in the price of an asset from when the contract opens to when it closes. Trading CFDs lets you speculate on price movements without ever owning the underlying asset.
On TrezTrade, CFDs give you access to over 100+ assets across multiple markets, including cryptocurrencies, forex pairs, stock indices, and commodities, all from a single account.
How CFD Trading works
Instead of buying the actual asset, you open a position that reflects your view on where the price is heading.
Go Long (Buy) if you expect the asset’s price to rise.
Go Short (Sell) if you expect the asset’s price to fall.
Your profit or loss is determined by the difference between the opening and closing price of your position, multiplied by the size of your trade.
Why traders choose CFDs
Access to multiple markets - Trade forex, indices, commodities, and crypto from one account without needing to hold the underlying asset.
Leverage - CFDs let you open larger positions with a smaller amount of capital. Learn more about leverage and margin here.
Go long or short - Profit potential exists whether markets are rising or falling.
No ownership hassle - There’s no need to manage wallets, custody, or asset transfers for the instrument you’re trading.
Key things to understand before trading CFDs
Leverage amplifies both gains and losses. Always use risk management tools such as Stop Loss and Take Profit orders.
CFD positions can be subject to overnight financing fees when held open past a certain time.
Margin requirements determine how much of your own funds are needed to open and maintain a position. Learn how margin calls and liquidation work here.
Getting started with CFD Trading
Open a CFD Trading account from the account selection screen or via the ‘CFD Trading’ button in the top menu.
Choose between a Real or Demo Account. The Demo Account uses virtual funds so you can practice risk-free.
Select an asset, choose your order type, and set your trade size.
Add optional Stop Loss and Take Profit levels to manage your risk.
Confirm your trade to open the position.
For a full walkthrough of placing your first trade, see our guide on how to start trading on Crypto, Forex, Indices and Commodities.
The information provided in this article is for informational purposes only and does not constitute trading advice. Trading involves risk and may not be suitable for everyone. Always trade responsibly and only invest what you can afford to lose.