CFDs enable traders to take a position on a product based on the amount of movement in its value, instead of needing to buy the product and subsequently selling it or vice versa.
Trading CFDs gives you the ability to use leverage, which lets traders open positions which are significantly larger than the amount of money put down; although traders should remember that increasing one’s leverage also increases one’s risk.
Spreads will vary based on market conditions, including volatility, available liquidity, and other factors. “Typical” spreads for noted pairs represent the median and are tracked during a specified time frame.
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