CFD Trading On Deriv

Deriv » CFD Trading On Deriv

CFD Trading : CFD stands for Contract for Difference. It is an innovative and very popular tool of investment. It gives the trader the opportunity to trade on the price movement of any financial market. Some of the financial markets available are:

  • Forex
  • Indices
  • Commodities
  • Stocks

The Best CFD Trading Brokers in South Africa

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*Risk Investment Warning: Trading Forex/CFD & Options on margin carries a high level of risk, and may not be suitable for all investors.
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Forex, Margin & CFD are complex instruments and come with a high risk of losing money due to leverage.

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Open Markets
Forex, CFD, ETF,Stocks, Options, Bonds and more!
4.5 rating
4.5
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South Africa Customers Only

Authorised and regulated by the Investment
Get easy access to:
TRADING Markets
Forex, Binary Options, Bonds and more!
4.5 rating
4.5
T&Cs Apply
South Africa Customers Only

Authorised and regulated by the Investment

Thanks to CFD, you can trade in any of these markets without owning the instrument. If your trading strategy tells you that the particular instrument will rise in value, you can place a buy trade. If, on the other hand, your strategy tells you that the asset will fall in value, you can place a sell trade. The beauty of CFD trading is that it allows you to make money both when the price rises or falls. In the traditional trade, however, you will need to buy the asset before you can trade it. In such a situation, you will only be able to make money when you sell that asset and not when you buy it.

  • When you buy in CFD trading, it is called “going long”
  • When you sell in CFD trading, it is called “going short”

Bear in mind that you can make a profit or loss per trade. If the market goes in the direction you predict, you will record profit. If it goes in a different direction, you will record losses. Always bear this in mind when trading CFD on derive in South Africa.

Leverage can help

The use of leverage makes it possible for a South African trader to make a lot of profit on Deriv. Leverage will allow you to open a trading position larger than what your capital can permit. The extra money you will need to open that trade will be provided by Deriv. The size of the position you can open will depend on the amount of leverage that you choose on Deriv. Deriv offers high leverage. So, it is possible for the trader to open a very large position on the broker.

While it is possible to make a lot of money when you trade using leverage, you need to understand that leverage is a two-edged sword and can swing your trading results either way. This means that it can make you record profit or loss. High leverage can help you to make a lot of profit and can also cause you a lot of loss. So, it is in your best interest to use leverage with care when trading on Deriv from South Africa.

Deriv is the Best Online trading Guide
Trading leveraged products such as Forex and CFDs may not be suitable for all investors as they carry a high degree of risk to your capital. It is really important that you do not trade any money that you can’t afford to lose because regardless of how much research you have done, or how confident you are in your trade, there will always be a time that you lose.