CFD – commodities
A contract for difference (CFD) is a contract between a buyer and a seller in which the seller undertakes to pay the buyer the difference between the price of an asset at the time the contract is made and the price of that asset at the present time. For a number of reasons, CFDs have become very popular with the trading community.
MedFX offers commodity-based CFDs for trading. This is a new and innovating way to trade financial instruments that offer good profit potential as well as the opportunity to have direct access to commodity markets, with lower margin requirements.
We offer CFDs based on UK Brent (Spot), US Crude (Spot), and US Natural Gas (Spot).
The advantages of commodity-based CFDs
- The same terms apply to both long and short positions. In other words, a short position has the same rules and margin requirements as a long one.
- Due to considerably lower margin requirements, it is cheaper to trade commodity CFDs than to buy the underlying commodities outright.
- Traders obtain instant execution.
- The ability to open both long and short positions makes it possible to take advantage of a rising market as well as a falling one. Essentially, you can make money even in a market in which prices are dropping.