Hi,
I have a question to which i can’t seem to find a straight forward answer too…
If i open up TradingView and search for Forex Currencies > Select a currency pair, for example GBP/JPY and take a long position…is this a spread betting or a CFD? (FYI - I’m from the UK)
Apologies for the newbie question, but i can’t seem to find an answer to this question anywhere.
A spread bet account you don’t pay commissions but the spread is bigger. Like eg. 1.5 pips - 3.0 pips on eur/usd but on ecn account the spread is like 0.1 - 0.5 pips usually +commission. they are 2 different account types.
How CFD Trading Works. Contract for difference (CFD) is a financial arrangement in which trades take place without ownership of the asset changing hands. Essentially, the buyer and seller participate in a transaction based only on the price movement of the share, not on the stock itself.
I think you should understand what Forex or currency trading is. What you just described is the simple way of Forex or currency trading. Spreading is just another form of Forex or Stock trading, Whereby the outcome is determined by other factors. Just study only Forex for now.
With questions like that I assume you should better go to our pipsology trading, there is lot of such information which described in much more usual way basically for everyone to understand that. I do hope it will solve such basic problems.
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