Key Features

When trading on margin investors are asked to deposit a small percentage of the overall cost that would be required if they were to purchase the equivalent shares in the physical market. Even though the CFD investor's outlay is small in comparison to the equivalent physical trade, the investor will still be exposed to the same potential profit and loss. This means that your potential Return on Investment is magnified. Our margins are as low as 2% when trading share CFDs so if you want to buy $50000 worth of shares, you only need to have $1000 on deposit in your account.

Broad Range Of Markets
A further positive aspect of trading CFDs is that they offer the private investor a derivative investment on a wide range of underlying assets. Hence CFDs may encompass contracts based on global shares, indices, currencies and commodities.

'Long' Or 'Short'
CFDs allow one to take either a 'long' position or a 'short' position. A trader would take a long position if he/she believed the underlying asset would rise and naturally would take a short position if they believed the underlying asset would fall.

'Leverage Or Hedging'
CFDs like most derivative products provide the trader with greater 'leverage' or 'gearing' with regards to investments. Basically, if the underlying asset upon which the CFD is based moves in any one direction, then this will be amplified by the movement in the value of the CFD. Hence, profits or gains on an investment are amplified and equally losses are greater too. Naturally the ability to go 'short' means one can profit even from a falling market and also allows one to 'hedge' one's portfolio from falls in the stock market or an individual share in which one is invested.

Interest Payments
Importantly the purchaser of CFDs will incur costs and benefits in respect to taking either a 'long' or 'short' position. Critically, an individual with a long position will incur daily interest payment costs, but will receive a payment based on the net dividend of the underlying equity, just like with ordinary shares. Conversely, an individual with a short position will incur dividend payment costs, but naturally will receive daily interest payments when shorting equity. Note also interest rates will fluctuate depending upon the volatility of the market and/or the volatility of the individual equity.
Long position = Account is debited to reflect interest payments
Short position = Account is credited with interest payments
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* The high degree of leverage that is obtainable in the trading of off-exchange FX transactions can work against you as well as for you. Leverage can lead to large losses as well as gains.
** InterForex is compensated through the difference between the buy and sell prices.

Please be advised, the services and products described on and offered by InterForex SA are not being offered within Canada, Australia or the United States and not being offered to U.S., Australian and/or Canadian residents or citizens, as defined under applicable law. 

Interforex Inc. and its products and services offered on the site are NOT registered or regulated by any U.S., Canadian or Australian regulator, including FINRA, SEC,