Trading Forex and CFDs Together

Trading Forex and CFDs Together

If you are familiar with financial markets trading, you have probably come across the term “forex.”  This term is an abbreviated form of the words “foreign exchange,” which is actually the largest trading market in the world.  Daily transactions in the forex markets surpass the $5 trillion mark, and this far exceeds what is seen in daily trading of the stock markets.

This is important because it essentially means that many investors are somehow unaware of which asset classes truly dominate the financial markets.  One key example of an asset class that sometimes falls under the radar of investors is the Contract For Difference, or CFD.  Many investors prefer to trade CFDs because there is such a wide variety of assets that can be tied to its platforms.

Finding Your Broker

In order to trade forex or CFDs, you will need a market broker that can provide you access to these assets.  Unfortunately, there are not many brokers that have platforms that are designed to trade both CFDs and forex at the same time.  

One broker that is able to offer access to both the forex and the CFD markets is FiboGroup, which has developed the cTrader for this purpose.  FiboGroup’s cTrader offering is one of the most popular trading platforms in the world, and this is largely because of its versatility and diversity that is possible when trading in the forex markets and the CFD markets.  For these reasons, FiboGroup has received many positive reviews and awards for its innovative offerings.

Trading for Profits

In order to trade in the forex and CFD markets successfully, you will need to understand the basic strategies that have worked for experienced traders over the long term.  This tends to be conducted either through fundamental analysis or through technical analysis.  

Fundamental analysis in the forex markets tends to revolve around economic data releases and central bank events that can sway the balance of the market’s perceptions.  When trading in CFDs, the types of information that is used depends more heavily on the specific asset classes.  When using technical analysis, expert traders will use price histories in order to figure out which trends are likely to dominate going forward.

These are some of the factors involved when investors are looking to start trading in both forex and in CFDs.  This is an exciting world, and one where significant profits can be captured in a short period of time.

About the Author
Richard Cox is a university teacher in international trade and finance. Lessons in macroeconomics and price behavior in equity markets. Trade ideas are generally suggestive of time horizons of one to six months.

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