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      Discover our tight spreads, plus all other possble fees

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    • Refer a friend
    • Trading hours
    • 24-hour trading
    • Maintenance
    • Risk management
    • Forex

      Get great rates on majors like EUR/USD, plus minors and exotics

    • Indices

      Enjoy 24-hour pricing on the UK100, US30 and more

    • Commodities

      Trade on metals, energies & softs, with oil spreads from 2 cents

    • Shares
    • ETFs
    • Currency indices
    • Dividends for index CFDs
    • Dividends for share CFDs
    • CFD forwards
    • TradingView

      Trade through the world-famous supercharts with great pricing

    • MetaTrader 5

      Explore the apex in trading automation with our execution tech

    • The Pepperstone platform
    • MetaTrader4
    • CopyTrading
    • cTrader
    • Trading tools
    • Navigating markets

      Latest news and analysis from our experts

    • The Daily Fix

      Your regular round-up of key events

    • Who we are

      Pepperstone was born from the dream of making trading better

    • Company news
    • Company awards
    • Protecting clients online
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Beginner

Why use CFDs in your daily trading?

Contracts for Difference or CFDs open up a whole new world for traders.

Many traders use CFDs daily, because unlike other tradable instruments, CFDs are a simple, cost-effective way to trade across an extensive range of markets powered by greater access due to leverage. Let’s take a look.


Key Characteristics of CFDs

There are two key characteristics of CFDs that make them suitable for daily trading.

  1. The first is Greater access

    This approach to trading was once restricted only for institutional traders or large accounts as leverage carries additional risk, especially if market volatility and position size are not carefully considered. Now times have changed and through platforms such as Pepperstone, the everyday trader can take advantage of leverage, accessing market movements they previously weren’t able to unless trading options or futures which have their own complexities.
  2. The ability to hold more positions at once

    CFDs allow trades without holding the underlying asset, meaning, the trader is simply expressing a directional play on the market over a duration of their choosing without actually having to own the underlying asset.

Four Key Advantages of CFDs

For those who watch the clock, there are four key advantages.

  1. Greater leverage means you can take up more positions; however note that greater leverage carries increased risk and will require attention to position sizing
  2. Low cost. For the active trader CFDs can be incredibly cheap vehicles to trade the world's financial markets
  3. With such an extensive range of markets - many trading 24 hours - wherever the move takes place, you never miss an opportunity
  4. Flexibility - You can simultaneously hold long and short positions in order to capitalise on bull and bear markets.

Learn more about trading CFDS

Here at Pepperstone, our customers love the product range along with the low cost to trade and the fact so many markets are open around the clock. Interested? Watch the more videos to learn or speak to our team about whether CFDs are right for you.

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Risk Warning:

Margin trading products are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading on margin with this provider. You should consider whether you understand how margin trading works and whether you can afford to take the high risk of losing your money. You don't own or have rights in the underlying assets. Past performance is no indication of future performance and tax laws are subject to change. The information on this website is general in nature and doesn't take into account your personal objectives, financial circumstances, or needs. Please read our PSF, RDN and other legal documents and ensure you fully understand the risks before you make any trading decisions. We encourage you to seek independent advice.

The information on this site and the products and services offered are not intended for distribution to any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

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