Advantages
- Multiply your investment
- Up to 10 times in shares of companies, ETFs and Commodities
- Up to 20 times in the case of Indices
- Profit from a price fall
- Through short positions, investors can gain from falling prices
- Receive dividends without owning Corporate Shares
- For a long position, the dividend paid by a company is credited in your account
- In the case of a short position, the dividend paid by a company is charged in your account
- Eliminate exchange rate risk
- The exchange rate risk exists only for the difference between the opening price and closing price multiplied by the negotiated amount
- Do not pay custody fees or administrative costs
- In most cases, the financial institution responsible for the custody charges a fee for processing the receipt of dividends
- CFDs are derivatives, therefore they do not require custodial services
- Trade with complete transparency
- Unlike other products, CFD prices are directly related to changes in quoted price of the underlying asset
- In derivatives as warrants and options, its price depends on "inputs" outside the investor's control (eg volatility, funding ...)
- Trade with no rollover costs
- Unlike other derivatives, futures, options or warrants, investors don't need to close their positions at a given date
- CFDs allow investors to hold the position as long as they wish
- Negotiate any amount you wish
- Unlike the futures that imply a standard amount, investors in CFD can negotiate the amount they desire
