In my way discovering financial markets, I just encountered “CFD Currencies”! which I’m unable to digest! What is the difference between trading CFD currencies and currency quotes (FX)? Is that just the expiry?
I don’t think there is a difference.
Physical Shares, commodities and FX
This is the traditional way to trade financial markets, this requires a relationship with a broker in each country, require paying broker fees and commissions and dealing with settlement process for that product. With the advent of discount brokers, this has become easier and cheaper, but can still be challenging for retail traders particularly if trading in overseas markets. Without leverage this is capital intensive as all positions have to be fully funded. CFDs make it much easier to access global markets for much lower costs and much easier to move in and out of a position quickly. All forms of margin trading involve financing costs, in effect the cost of borrowing the money for the whole position. This is charged daily for all open positions and makes CFDs convenient if used under around 10 weeks, an estimated point where CFD financing charge exceeds financing charge for stocks, but more expensive for long term positions.