CFD TRADING

Ready to get started?
Start trading with a live account today or try a demo with $10,000 of virtual funds.
Learn about some of the advantages of CFD trading. Contracts for difference (CFDs) are a type of derivative product that allow you to trade using leverage within the financial markets, including on indices, forex, commodities and shares. Discover the main benefits of CFD trading on our online platform, and learn about the associated risks of CFD trading also before placing a trade.
With CFD trading, you can trade on the price of a product going down as well as up, so you can try and benefit from selling (shorting) as well as buying opportunities. Many investors use CFDs as a way of hedging their existing portfolios through periods of short-term volatility.
One of the key advantages of CFD trading is that you can trade on margin, which gives you 'leverage'. This means you can trade without having to put down the full value of a position. As your money is not tied up in one transaction, you can use it for other investments.
For example, to buy the equivalent of 10,000 telecom company share CFDs with us, you may only need to deposit 5% of the total position value that you might have to pay if you were buying physical shares from a stock broker.
If each share cost 150 cents then you would only need to deposit $2250 of position margin with us (15% of $15,000 = $2250) plus the applicable commission, which in this instance would be $100.
To complete the equivalent trade with a stockbroker you would have to pay the full value of $15,000, plus commission and taxes.
Note: trading using margin means you can magnify the returns on your investment but it is important to remember that losses will be magnified as well. There are many order types and execution tools on our platform that help you manage your risk effectively. Learn more about our software, which has been voted as best CFD trading platform¹ for several years.
Can I take a short position when trading CFDs?
With CFD trading, you can take a position on both sides of the market. You would go long (or place a buy trade) if you believe the instrument will rise; or go short (place a sell trade) if you think the instrument will fall in price. Short selling is a strategy used by traders who want to take advantage of falling market prices.
Which markets can I access through CFD trading?
Is there an expiry date for CFDs?
Most CFD trades do not have an expiry date, meaning that you can hold positions for a long period of time. Some traders prefer to use position trading strategies to trade on instruments over the longer term, rather than investing directly.
How can I trade CFDs?
1Awarded Best Mobile Trading Platform, ADVFN International Financial Awards 2024; Best Mobile Trading Platform, Professional Trader Awards 2024; No.1 Web Platform, ForexBrokers.com Awards 2023.
Disclaimer:CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.Our client services team is here whenever the markets are open. Email us at clientmanagement@cmcmarkets.ca or call us on 1-866-884-2608.