CFD Trading with VIG Investment

CFD trading allows you to trade the price movements of currency, stock indices and commodities like gold and oil without buying the underlying product. When you trade CFDs (contracts for difference) with VIG Investment, you enjoy the benefits that only a global leader can provide.

• Low spread costs. Lower spread costs can help your strategy execute more trades.
• Access to leverage. Trade with up to 400:1 leverage on forex and up to 200:1 on indices and commodities.1
• Multi-asset platform. Trade forex, indices and commodities from one powerful, easy-to-use platform.
• Trade rising and falling markets. CFD trading is flexible, allowing you to take advantage of both rising and falling markets.

Why Trade CFDs?

A CFD, or contract for difference, is a security that allows two parties to exchange the difference between the opening and closing price of a contract. These agreements allow the two parties to settle the final contract using cash, instead of physical goods or securities. This approach frequently makes settlement easier.

By trading CFDs, investors can receive all the benefits associated with owning a security without actually possessing that security. Investors can harness these contracts to take long or short positions, speculating on the underlying asset's future price movements. Alternatively, they can use these contracts to hedge their portfolios, helping to manage different kinds of risk such as downside risk.

Leverage

These contracts also provide leverage, allowing investors to potentially generate more robust returns. Investors who trade these contracts using leverage may only have to put up a small fraction of the contract's cost, so they can potentially generate a stronger return on investment. Harnessing leverage can also allow investors to trade CFDs with a much smaller capital outlay. VIG Investment offers up to 400:1 leverage on forex and up to 200:1 on commodities and indices. Investors should keep in mind that leverage is a double-edged sword. While it can greatly amplify one's profits, it can also dramatically amplify their losses. Trading CFDs with any amount of leverage may not be suitable for all investors.

Low fees

CFD trading comes with low fees. When buying, a trader pays the ask price. When selling or taking a short position, a trader pays the bid price. The spread between these two is generally fixed, and its size depends on the volatility of the underlying asset.

No stamp duty

When trading CFDs, investors are not obligated to pay a stamp duty, because these contracts are a type of derivative. As a result, investors that opt to trade CFDs may avoid the generating the tax liability they would incur by trading other securities. Investors should keep in mind that tax laws can change. Because every trader has unique circumstances, they may want to speak with an appropriate tax professional to get clarity on any questions.

24/5 markets

Another benefit of CFDs is that these securities trade 24 hours a day, five days a week. Even if an underlying markets is closed – the stock market, for example – an investor can still trade CFDs based on major stock market indices.

Key considerations

While CFDs offer investors all the benefit associated with owning a security without actually having to possess it, they also come with all the risk associated with holding that security. CFDs offer traders the ability to use significant amounts of leverage, but leverage can dramatically amplify losses.