CFDs are an increasingly popular way to invest in different markets. They give investors a mechanism for making leveraged trades and profits in a wide range of different areas. Modern trading systems make these investments quick and easy. Here are some of the many CFD markets you can invest in.
Corporate Stocks
You can use CFDs (Contracts For Difference) to make leveraged trades based on thousands of different corporate stocks from countries around the world. You can select companies from the United States, UK, Asia or Europe, and stake out your long or short position on each.
Stock Indices
Rather than trading a CFD based on a specific company, you can trade CFDs which are based on different market indices. This includes all of the most popular market indicators, such as the Dow Jones, S&P 500, NASDAQ, UK 100, German DAX 30, Japanese NIKKEI index, and more.
Industry Market Sectors
If you prefer to invest in something narrower than an entire market index, while still broader than a single corporation, you can look into placing a CFD on a specific sector, such as banks, oil, pharmacy, real estate, or mining companies.
International Currencies
You can get forex CFDs based on different currency pairs. For instance, if you think that the dollar is going to go up compared with the Euro, you could get a CFD on the EUR/USD. If you think the dollar is going down vs. the Yen, you could get one on the USD/JPY.
Precious Metals
You can use a CFD to make a trade based on what you expect will happen with the prices of various precious metals. CFDs are available for gold, silver, copper, and other metals.
Commodities
CFDs are available for a wide range of commodities. You can get a CFD position based on sugar, coffee, corn, wheat, soy beans, pork bellies, or more. You can also trade CFDs which are based on either UK or US crude oil prices.
Bonds
CFDs can also be based on the bond market, and you can make trades on Euro bonds, US bonds, and UK gilt bonds.
Interest Rates
If you want to take a position on what is going to happen with short term interest rates, you can place a CFD based directly on different interest rates. For instance, you could get an interest rate CFD on the Eurodollar or the Short Sterling.
To find out which brokers cover different CFD markets, check out http://www.cfdspy.com/. You'll find a wealth of information in their broker comparisons.
