CFD Trading With XTrade – What You Should Know

XTrade is a broker that has its own platform that allows traders to deal in CFDs.

If there’s one thing we know about CFD trading with XTrade, it is that most people don’t know about both, that is, most people do not have any idea on what CFD trading is, although they might vaguely have an idea on what this company is all about. But don’t you worry because, in this article, we are going to tell you a little bit more about both.

About CFD

XTrade

CFD means Contracts for Differences. Like binary options, it is a derivative instrument and you do not hold any part of the underlying asset. However, unlike binary options, your losses or wins are not pre-determined. If you have done any binary options trading, you already know that the profits are already fixed, which could anywhere from 70% to 90% depending on the broker.

You can trade CFDs through XTrade Academy as they are a different beast.The profits are more variable because it is dependent on the price difference between the asking and closing price. But this can actually work to your advantage because if the price movement does not work in your favor, you will not lose all of your money, unlike in binary options trading. But again, this really depends on what the closing price is at the time the contract ends.

XTrade is a broker that has its own platform that allows traders to deal in CFDs. If you sign up with this broker, you will not need to download any trading software. It has developed its own web-based proprietary software so traders trade right on the website.

Is This A Good Option For You?

Should you trade CFD? That really depends on whether you are a trader. Trader, for us, is a person who consistently makes winning trades, whether that is in forex trading or binary options. He does not win all the time but he does manage to win 80% of the time. If you do not have that kind of ratio trading currency pairs or binary options, do not bother trading CFDs because you will only lose and unfairly call XTrade a scam when it is not. The company is registered and regulated in Cyprus, and the money traded in there is actually backed by a fiduciary agency.

How is CFD trading actually working through this company – XTrade? In forex currency pairs, the pip is fixed  at 2 to 5 pips  depending on the currency pair. The trades are leveraged on the average at 1:400. So, if at the end of the contract the price moves in your favor, you could actually earn your daily wage for the day. But this is not something that you should expect, not at least in the beginning.

If you want to trade CFD, we strongly recommend that you sign up for a demo account first and familiarize yourself with the trading platform. Keep a journal as you are making trades. What you want to do is to create a winning trading strategy, and the only way to do that is by recording what you’ve been doing and determining which ones are working and which ones are not.