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
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
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
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.
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
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.
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?
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
Trade on both rising and falling markets
Efficiency of your capital
Up to X200 leverage
Risk management capabilities
Transparent and secure
Trade over 1,000 top assets
from 3 major markets
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.