Online Forex and CFD trading is perhaps one of the most popular activities among individual and corporate investors.
”CFD Forex”: a Term or a Weird Phrase?
Contract for Difference (CFD) is an agreement between two parties, described as buyer and seller, to exchange the difference between the initial value of the underlying asset when the contract is opened and the value of the underlying asset when the contract is closed.
There are CFDs on indices, stocks and commodities which are cash-settled and there are no ownership rights for them. This means that one can trade on the underlying asset movement without physically owning it. In its nature CFD market is similar to share market, and in many aspects differs from Forex markets.
The foreign exchange market, also known as “Forex” or “Fx” market, is a global decentralized marketplace where currencies are traded. It has no centralized marketplace where transactions are conducted. Rather, Forex trading is carried out electronically over-the-counter (OTC), meaning that all trading transactions are performed via computer by traders and other market participants over the world.
So, after the short review of the two markets, it is now time to understand what “CFD Forex” expression means. This is a wrong expression, since it refers to both markets simultaneously and looks like a phrase, while there is no such understanding as “Contract for difference foreign exchange” – they are two different markets, because Forex includes only currencies, while CFD market includes commodities, stocks, indices and more.
“CFD Forex” or CFD and Forex markets
IFC Markets, a leading CFD broker, offers a very large number of trading instruments, including currency pairs, CFDs on stocks, indices and commodities, precious metals and Gold instruments. Mainly, the company is concentrated on providing instruments of the CFD group. Due to the great diversity of instruments, clients can trade any instrument they prefer, especially after the release of PCI technology that allows traders not only choose the classic sets of instruments, but also create their own ones, that is completely innovative approach to online trading.
IFC Markets is a leading innovative financial company, offering private and corporate investors wide set of trading and analytical tools. The company provides its clients with Forex and CFD trading through its own-generated trading platform NetTradeX, which is available on PC, iOS, Android and Windows Mobile. The company also offers MetaTrader 4 platform available on PC, Mac OS, iOS and Android. You may compare the advantages of both platforms.