CFDs
CFDs: “Contracts For your investment Debut”
Varengold started dealing with CFDs in 2000 as one of Germany's pioneers in this field. “Contract For Differences” are willing to take advantage from Varengold’s expertise for almost 10 years. The platform we provide, along with our experts’ support for the customers, are the main strengths leading people to trade CFDs with us.
CFDs are financial products known for their simplicity. Varengold proposes to its customers CFDs to enlarge their ways to trade by giving them the opportunity to take advantage of a high leverage. The past has shown that our efforts, seriousness, competencies and strictness for the products we trade become our areas of expertise. Our main objective with the CFDs has been, from the very beginning, the same objective as for the other financial products we offer: a secure and valuable investment.
Advantages at a Glance
Investment Strategy
CFDs stand for “Contract For Differences”, and are derivative products. These products are modern financial tools, making trading of shares, indices and raw materials more easy-to-use and less expensive.
The investor does not buy or sell an underlying product when trading CFDs. He only gets an agreement with his financial intermediary stipulating that the difference, gain or loss, resulting of the transaction, would be cashed/paid to his account (hence the name of CFD).
CFDs can be compared to other products such as warrants. However, the CFDs give the customer a larger choice of underlying products such as shares, commodities and indices. Additionally, they are easier to use as they do not have any expiry date or a time value.
The first trading license for CFDs was in Great Britain. It is worth noting that CFDs are not traded on the stock market, but are exclusively issued by special trading houses. For this reason CFDs are not classified as a standardised market product. They are traded as over the counter (OTC) products (i.e. outside the market), and always directly between the dealer and the trading house. Today, it is estimated that CFDs transactions account for as much as 25% of the stock turnover at the London Stock Exchange.
Varengold gives you the opportunity to trade CFDs at a low price, and the chance to make profits without investing a large amount. Moreover, we provide 24 hours full support service from Monday to Friday to assist you with technical issues on platform use. Our traders can also place orders at your request.
