What are CFDs?
A CFD is a contract for difference. It is a form of financial instrument that allows you to invest in a global asset without actually buying the asset itself.
CFDs are a flexible, easy and transparent form of online trade. When you open a CFD trade on an asset, your goal is to profit from changes to its market price.
Your profits are calculated as the difference between the asset price when you open a position, and the asset’s price when you close the position.
Celox traders can increase their investments by using our Leverage options, increasing their investment by maximum 200 times the initial investment.
The use of leverage allows you to increase your market exposure and potentially earn higher profits with a smaller initial investment. One of the big attractions of CFDs is their simplicity.
You can open a CFD trade on an underlying asset either as a Buy or a Sell position.
BUY, If you expect an asset price to rise open a BUY position.
SELL, If you expect an asset price to fall open a SELL position.
Here is an example of a CFD Trade
Celox offers 5 main classes of assets as CFDs: Stocks, Commodities, currencies, cryptocurrencies and Indices. The basic trading principles are the same for all assets.
A Typical CFD Trade
You buy USD 500 with Euros. After 4 days, you exchange the dollars back to euros, making a profit of $150.
How is this possible?
When you first bought the $500 a couple of days ago, the USD market price was 0.9 EUR. Now, the USD market price is 1.2 EUR. This 0.3 price movement earned you $150.
You profited by following the basic market principle of buying the dollars at a low rate and selling them back at a higher rate. If you had leveraged your initial investment, your profits would have increased indirect.
If you correctly predicted the asset's market performance, you may make substantial profits, particularly if your trade is leveraged. If your investment does not succeed, you may lose part or all of your invested capital. You will never be subjected to any further debts or liabilities.
Why Trade CFDs
Celox offers modern traders a low-cost trading environment, where fixed and variable spreads have replaced old fashioned fees, commissions and hidden charges.
When you trade CFDs with Celox, you can keep track of every stage of your investment and see at all times your potential profits, losses and expenses at a single glance. Celox operates as an STP online brokerage that earns only on its clients' spreads.
Traders at Celox have instant access to up to x200 leverage. The only condition is that you maintain a sufficient margin reserve in your trading account to cover your leveraged trades. Leverage allows you to multiply the volume of any trade and potentially increase your profits by the same proportion.
When you trade at Celox, you can open leveraged trades on nearly 500 financial assets such as forex, cryptocurrency, stocks, commodities and indices.
If you correctly predicted the asset's market performance, you may make substantial profits, particularly if your trade is leveraged.
Benefits of CFDs with Celox
CFDs are increasingly becoming the first choice of investment for modern traders.
They allow you to complete independence and the ability to build a personal portfolio that suits your budget and financial goals.
- Low-Cost Online Investing
All trading at Celox is commission-free with no hidden fees or other charges. We work hard to reduce your investment costs and offer you the best possible trading environment.
- Flexible Investing
CFD traders can potentially profit from both bull markets and bear markets. You can open leveraged positions either as buy or sell trades and exploit any market movement. The Celox platform allows you to manage multiple investments simultaneously, with real-time analysis and sophisticated account management. Our risk management tools and entry orders give you a high level of flexibility and control over every trade that you make.
Celox offers up to 1:200 leverage on individual trades. Boost your market exposure and potentially increase your profits when you increase your trading volume through leverage.
- One-click execution
Rapid response to changing market conditions can be vital, especially when you are managing several open positions simultaneously. Our one-click trading tool allows you to open and close positions with instant order execution.
Who Can Trade CFDs?
Online CFD trading is already a prevalent form of investment with millions of traders worldwide. Almost anybody can trade CFDs if they are willing to apply the basic principles of risk management.
Many of Celox top traders started as absolute beginners with no experience of the financial markets. The Celox Trading Platform gives you the freedom to set your own financial goals and manage your own investments.