If you speculate with CFDs as a beginner, you can win and of course lose a lot of money very quickly due to the leverage effect.
Always remember: CFD trading is speculative!
CFDs are speculative financial instruments and belong to the group of derivatives. This means that their value is derived from the development of certain underlying assets such as shares, indices or currencies.
CFD trading should therefore not be confused with a direct investment in a share. As a shareholder, you become part owner of a company. In case of a positive development, you profit in the form of distributed dividends as well as in the long run from a positive share price development.
Inform yourself in advance about the product CFD
Unlike warrants and certificates, CFDs are simple and transparent. Nevertheless, beginners should acquire sufficient basic knowledge before their first trades in order to understand how CFDs work. Therefore, inform yourself sufficiently in the area of CFD knowledge before you start with CFD trading.
Choose a low leverage at the beginning!
The leverage of CFDs seems very attractive at first sight. The higher the selected leverage, the stronger the effect of price changes. This increases the chance of profit, but at the same time also the possibility of loss, as the leverage always moves in both directions.
Traders from Thailand suggest you to bet on underlyings you are familiar with: CFD อยู่ในกลุ่มอนุพันธ์คือ. มูลค่าของพวกเขามาจากการพัฒนาของสินทรัพย์อ้างอิง. มีข้อยกเว้นเล็กน้อยโบรกเกอร์ CFD ทั้งหมดเช่น exness ฝากเงิน ทําหน้าที่เป็นผู้ดูแลตลาด. คําสั่งซื้อที่คุณวางไว้จะไม่ถูกส่งต่อไปยังการแลกเปลี่ยน แต่ราคาซื้อหรือขายจะถูกกําหนดโดยนายหน้าเอง.
CFDs belong to the group of derivatives, i.e. their value is derived from the development of an underlying asset. With few exceptions, all CFD brokers act as so-called market makers. An order you place is therefore not forwarded to an exchange, but the buying or selling price is set by the broker himself.
It is therefore very important that the broker shows prices that correspond to the prices of the underlying assets on the market. Larger deviations have a major impact on your profit or loss due to the leverage effect.
Therefore, at the beginning, only invest in CFDs on underlyings that you are really familiar with. The Dax is particularly recommended here, as are European and American blue chips. Gold and oil, on the other hand, are suitable investments in commodities.
Use the possibility of money management!
Due to the strong leverage effect of CFDs, loss limitation or capital preservation should be your first priority. You as an investor have a strong influence on the risk yourself.
Never put all your eggs in one basket and determine in advance how high the maximum percentage loss per trade may be. Always set the maximum loss in relation to the total portfolio volume. In this way you limit the risk to the amount invested.
Pay attention to the costs!
Low transaction costs are usually only incurred with CFDs on shares. Much more decisive here is the so-called spread, the distance between the buy and sell price. The spread is higher the less frequently the underlying is traded. For the Dax, the spread should not be more than one to two points. Note that spreads can widen considerably in turbulent stock market times.
Choose a reliable and experienced CFD broker!
Choosing the right broker is the most important step to successful CFD trading. Important questions to ask yourself when choosing your CFD broker include:
How much money do you plan to invest in CFDs? Does the minimum deposit required by the broker fit?
Does the broker offer the leverage you want?
Which underlyings does the broker offer?
How high are the costs?
Does the broker offer a demo account?
