RoyalsFX

CFDs

A Brand-New Way to Trade and Invest

What are CFDs?

CFDs (Contracts for Difference) are a type of a tradable instrument that allows you to speculate on live market price

movements without actually owning the underlying asset on which the contract is based. This unique method lets you

create an agreement to exchange the difference between the opening price and the closing price of the traded

asset. The difference multiplied by the position size determines the profit or loss.

The overall idea is quite simple:

Select an asset and choose to go long (BUY), if you think the market price will rise or go short (SELL), if you think the

market price will fall. You can make profit in the event that the market moves in your favor, regardless if it’s an up

trend or a down trend.

 

As a rule, a “BUY” price (ask) will always be slightly higher than a “SELL” price (bid) , while the actual market price of

the tradable asset will be somewhere in the middle. The difference between the “BUY” and “SELL” prices is called

“spread”.

 

CFDs are considered as a leveraged product (up to x200 leverage with the RoyalsFX platform). What it means is

that you are able to trade with only a small portion of the total value of your trade and still be able to maximize your

returns.

For example:

The price of silver is rising, but you think it will soon drop.

You open a SELL position on silver (5 ounces) at $660 an ounce (the bid price).

5 x $660 = $3,300

The contract is leveraged on a 1:50 ratio:

$3,300 : 50 = $66

This means you need at least $66 in your trading account (initial margin) in order to open this position.

Silver then drops $20 in value. You manually close the position and earn:

$20 x 5 (ounces) = $100

Your profit is $100

At no point did you actually buy any silver. You simply invested on the commodity’s market performance.

Advantages of CFD trading

CFD trading allows you to open several trades simultaneously while using quite a small amount of capital. This trading

method carries no hidden fees or commissions to a third party.

Unlike other traditional forms of trading, there is no requirement to actually own the traded asset. This eliminates the

need for any paperwork or contractual agreements with brokerage firms/banks.

You can simply register by providing your info, make a minimum deposit in a segregated trading account and start

trading.

Leverage

Leverage gives you the ability to open

a trading position while using only a

fraction of its total value. Doing so,

allows you to control larger trade sizes

and to magnify your overall returns.

Diversification

As a CFD trader, you get access to all 3

major markets – stocks, commodities

and indices. The opportunity to trade on

such a wide variety of markets and

assets provides you with the foundation

to build a balanced and strong trading

portfolio.

Risk management

You can set your exposure level by

adjusting the “stop loss/take profit”

parameters. This standard feature will

automatically close any open positions

if the price either drops or rises beyond

a predetermined point, thus locking in

profits and minimizing losses.

Profit opportunities

Trading in CFDs gives you the ability to

produce profits, regardless of the

asset’s market price direction. You can

open a “SELL” position and profit as the

asset drops in price.

The benefits of RoyalsFX?

State-of-the-art platform

Fixed spreads

Dedicated customer support

More than 1,000 top-class assets

Extensive educational center

Secure, transparent and regulated broker

Zero commissions, zero fees

1-on-1 personal trading sessions

Main Advantages:

Trade on both rising and falling markets

 

Efficiency of your capital

 

Up to X200 leverage

 

Risk management capabilities

 

24/5 availability

 

Transparent and secure

Trade over 1,000 top assets

from 3 major markets

Stocks

Indices

Commodities

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FAQ

High Risk Investment Trading foreign exchange carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts DISCLAIMER ALL ISSUES RELATES TO THIRD PARTY SERVICES INCLUDING WITHOUT LIMITATION ROBOTS, ALGO TRADING, SIGNALS AND SOFTWARE ARE PROVIDED BY A THIRD PARTY (AFFILIATE) AND THE PLATFORM DOES NOT ENDORSE ANY VENDORS OR HOLD ANY LIABILITY FOR ANY INCIDENTAL, CONSEQUENTIAL, DIRECT, INDIRECT, SPECIAL OR PUNITIVE DAMAGES (INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOSS OF BUSINESS, LOSS OF PROFITS OR LOSS OF USE) AND THE USE OF IT IS SUBJECT TO YOUR DISCRETION AND AT YOUR OWN RISK.