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Have you always wanted to trade shares or simply tired of trading Spot Forex currencies and wish to take advantage of the available CFDs on the Dukascopy Bank's online trading platform but don't know much about them? If your answer is a Yes, then please continue reading.
In layman's terms, just as in Spot Forex trading a currency pair equates to an actual purchase of one of the two underlying currency assets and selling the second currency of the pair against it, Contract for Difference (CFD) is the opposite in comparison to Spot trading and works on merely speculating on the price change in the exchange rate of an underlying asset; without entitling us to the ownership of such an underlying physical asset. Therefore, since CFDs are not an actual acquisition or selloff of real assets; liquidity is never an issue and will not impact a trade as it does when trading physical assets on an exchange market.
There are CFDs for many types of markets but the most common ones are as following:
  • Global stock CFDs, such as blue chip shares of a public company.
  • Stock index CFDs, such as NASDAQ, FTSE, DAX and other stock market indices.
  • Forex CFDs
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maikfx avatar
maikfx 28 Dec.

Buen articulo!!

ForexAlyoum avatar

Good Luck My Friend, Happy New Year

klintons avatar
klintons 19 Jan.


olgerd902 avatar
olgerd902 24 Jan.

Вы грамотный по теме человек, изложение заслуживает одобрения.

pramuk avatar
pramuk 3 June


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The financial markets have witnessed tremendous evolution in the past two decades or so, which has seen great innovations and new products coming to the market. The equity markets has also seen huge revolution coming through and the market is becoming more efficient by the day.
This article is inspired by the daily stock options and contracts for difference (CFDs) being offered by Dukascopy. Equity analysis and research can be quite involving and requires great expertise to interpret the historical financial information and then model ways to project a company's earnings or a country's growth rates to come up with valuations of the company. In this respect the article seeks to explore how traders can make use of currency fluctuations to predict the performance of companies. With this information, traders and analysts can get a better understanding of the close relationship between these two markets and also gain an added advantage in forecasting market direction.

The impact of currencies on equities.

There are a lot of ways in which currencies fluctuations can impact equities and the impact can be direct or indirect. For multinational companies, the volatilit…
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MURO avatar
MURO 28 Feb.

Interesante articulo,Suerte!

Bernny avatar
Bernny 29 Feb.

good job

ImranMughal99 avatar

nice article

Milanchez avatar
Milanchez 29 Feb.

Good explanned!

GammaBurst avatar
GammaBurst 10 Apr.

Really interesting article, useful.

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  • Retail Traders or Institutions?.

CFDs appeal to a broad range of users for different reasons and the people trading in CFDs range from sophisticated retail traders to day traders, to mums and dads. Hedge funds, institutions and wholesale clients are also known to make use of CFD trading and the market is still growing.
Professional traders employed by investment banks or trading companies are able to utilise CFDs for speculation or hedging purposes. In this instance their ultimate goal is to gain from or hedge against the risk of, volatility of price movements in market instruments. Institutional investors like hedge funds and stock portfolio managers are also known to utilise CFDs to manage funds on behalf of investors; in this way CFDs provide them with additional flexibility to add to their existing investment options and allows them to manage the short-term risk associated with the daily movements in the value of their portfolios. CFDs in particular allow institutional fund managers access to cheap leveraged exposure on a wide range of market instruments (including instruments that may not have liquid markets of their own) with the added flexibility of being able to…
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aashjan413 avatar
aashjan413 27 Nov.

nice article metal mind

aashjan413 avatar
aashjan413 27 Nov.

keep it up +1

OneGoodTrade avatar

If you win it doesn't matter what medium you use but good work.

ivanbgd avatar
ivanbgd 29 Nov.


erik avatar
erik 25 Nov.

Could your next posting address the commission calculation in detail when trading different CFDs with Dukascopy, i.e. indices vs. single stocks?

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  • Introduction.
On 31st July this year Dukascopy Bank announced on the main page in news section that has received a Securities Dealer License, issued by FINMA, and therefore will extend the scope of financial instruments offered on its trading platforms with CFD instruments (Contract for Difference) on a wide range (about 200) of underlying assets, like major indices, stocks and commodities which are programmed to be lunched soon.
Having this in mind and the fact that I have 3 years experience in CFD trading, I have decided to write this article which is the first in a long series that will come, having as main topic CFDs and everything that you need to know about them. In this article I will present basics like what are CFDs?, why they exist? ,trading possibilities and some main advantages.

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Metal_Mind avatar
Metal_Mind 19 Nov.

3. The minimum margin requirement is very low comparing to a traditional aquisition of stocks or future contracts which will require you to have all the margin and a very big account in order to do that. With CFDs you only need to deposit 5-10 % for shares and 1 % for indices. See the example at Potential Return section above.!!
4. CFDs are also tax eficient , are exempt from stamp duty which applies in UK
5.CFDs have very low commision and it is very cheap to trade them which find them very attractive for the little investor.

Metal_Mind avatar
Metal_Mind 19 Nov.

@rokastlu : You will sure find a place for them in your trading portofolio.!

aslamhammad avatar

nice article :)

Mani avatar
Mani 21 Nov.

good work +1

aashjan413 avatar
aashjan413 27 Nov.

well done boss i like your article very much

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