CFDs are a revolutionary trading product which gives you more trading power, flexibility and opportunities to profit from trading. Here are some reasons why CFDs are becoming the trading product of choice for traders in Australia and around the globe.
Leverage
CFDs are traded using leverage. This is a more efficient use of your trading dollars because you only have to allocate a small proportion of the total value of your position to secure a trade, while maintaining full exposure to the market.
CMC Markets margin rates:
| Share CFDs: | From 10% |
| Index CFDs: | From 3% |
| Sector CFDs: | 10% |
| FX: | 1% |
| Commodity CFDs: | 5% |
| Treasury CFDs: | 5% |
Profit from falling and rising markets
CFDs give you the ability to profit when the markets fall, as easily as when the rise. You can also hedge your long Share positions in falling markets by shorting with CFDs.
CFDs provide you with more trading flexibility and give you more opportunities to profit.
Limit your trading risk
When trading CFDs with CMC Markets you can place stop loss orders which can protect you from large market moves against you.
Other order types accepted online include: Market, Limits (take profits), normal Stop-loss, If Done (contingent) and OCOs (One Cancels the Other). You are able to place and amend these orders free of charge.
Trade global CFDs
By trading CFDs you are no longer restricted to trading just Australian Share CFDs. You can also trade international Share and Index CFDs, for example CFDs over Microsoft, Vodafone, Barclays Bank, Deutsche Telekom the US30 index and UK100 Index all from one single trading account.
Dividends
As an owner of a Share CFD you will have your account adjusted to reflect cash dividends paid on the underlying share and participate in stock splits, just as you would if you owned the physical share. The only difference is that with a CFD you are not entitled to any voting rights or franking credits.
